CHIVAS Regal owner Pernod Ricard is well-placed for an upturn in the Chinese spirits market, according to analysts at Espirito Santo.

The drinks giant is seeking to boost sales of some of its most expensive ranges, such as its Ballantine's 40-year-old whisky, which sells for more than £195 a bottle, despite a recent slowdown in the market.

Espirito Santo analyst Alex Smith said the house has "increased conviction that Pernod is probably the most structurally advantaged company among our coverage to benefit from the increasing wealth effect of the Asian, and in particular, Chinese consumer". He added: "We remain confident in our mid-term projected growth profile for China which we have as contributing to over 40% of group profit growth."

An economic slowdown, a weak Chinese New Year and a clampdown on governmental gift-giving and banquets have all conspired to restrict Pernod's sales in China recently. But as it plans for continued growth in demand from Asia, Pernod's whisky and gin business Chivas Brothers plans to open a new malt whisky distillery on the banks of the River Spey near the village of Carron.

This will increase Pernod's malt whisky output by 10% to 15%.

Pernod, which is already the market leader in segments such as Scotch whisky and cognac in Asia, wants to increase its share of the western-style spirits market in Asia from 35% of gross profit to 40% by 2015.

While blended whisky brands such as Chivas Regal and Royal Salute have been at the forefront of its expansion, the group sees an increasing role for single malts in its strategy.

Pernod recently appointed Laurent Lacassagne, the current head of its European operations as chief executive of Chivas Brothers to replace Christian Porta.