Pernod Ricard (PDRDY), maker of Absolut vodka, Chivas Regal and Jameson whisky, Wednesday ruled out large acquisitions in the short term, as the French drinks giant prioritizes organic growth and further cutting its debt.

Major acquisitions are "absolutely not on the agenda," said Chief Executive Pierre Pringuet at a meeting with reporters in London. "Our absolute priority is to organically develop our business," he said, although its strategic goals could change given appropriate market conditions. "It doesn't mean we will not return to mergers and acquisitions at a certain time," he added.

Pernod Ricard, like U.K.-based rival Diageo (DGE.LN), has been linked to Fortune Brands Inc.'s (FO) spirits assets, which include bourbon brand Jim Beam, after the U.S. consumer goods conglomerate last December said it would split its businesses. While not commenting directly on Fortune Brands, Pringuet did dismiss reports the group had any interest in Remy Cointreau SA's (RCO.FR) champagne portfolio after it put its loss-making Charles Heidsieck and Piper-Heidsieck brands up for sale last November.

Pringuet, while noting that the group's debt is "no longer an issue", said another priority is to cut it further. He also said the company is comfortable with its bond credit rating ambitions. "We want to be a 'BBB' company. We do not intend to be a single 'A' company."

Pernod Ricard reduced its debt -- largely accumulated as part of its purchase of Vin & Sprit three years ago -- by EUR864 million in the fiscal first half to EUR9.72 billion at the end of December 2010. Its debt-to-earnings ratio of 4.5 times is down from 4.9 times from the end of June last year, and the company is targeting 4 times by June 2012

Meanwhile, Pringuet said he is optimistic about the general recovery in consumer demand. "The rebound is coming from all parts. It is emerging markets led, but I am optimistic about the U.S. and there are some good signs in Europe."

"Over the last six to nine months [in the U.S.], we have returned to the pattern of premium products growing faster than the rest of the market," he said.

Pringuet said the group's guidance for 20% fiscal-year net sales growth in China, focused on demand for super-premium Scotch whisky and cognac, is a "sustainable rate of growth for the foreseeable future."

China, which accounts for 9% of Pernod Ricard's total sales, is set to become the group's largest market after the U.S. and ahead of France by the end of the fiscal year.

Separately, U.K. CEO Jean-Manuel Spriet said the group's January performance in the country was better-than-expected, while February trading was normal. "Confidence is eroding, but the business so far (this year) is quite normal."

In terms of the impact of rising commodity prices, the company said that while barley and wheat costs have gone up since July last year it doesn't represent a major problem, without elaborating further. Earlier this month, Diageo said the margin impact in 2011 from escalating raw material prices is expected to be largely flat year-on-year.

Last week, Pernod Ricard raised its fiscal-year profit guidance after posting a 10% rise in first-half net profit on sales growth driven by strong demand in Asia and its other emerging markets. Its 14 flagship spirits and champagne brands, including Martell, Perrier-Jouet and The Glenlivet, posted a 13% rise in organic sales, driven by an 8% increase in volumes and price gains. In Europe, top-line losses in Ireland, Spain and Greece, hit by macroeconomic woes, were more than offset by growth in Russia, Poland and the Balkan countries.

At 1447 GMT, Pernod Ricard shares were down 0.5% at EUR66.42, while the CAC-40 was also down 0.5%.

By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410; simon.zekaria@dowjones.com