UK & India: Scotch whisky industry expected to benefit by free-trade agreement between the UK and India
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UK and India are expected to announce a free-trade agreement (FTA) – potentially by the end of October – which investors would deem as good for the Scotch whisky industry, especially Diageo PLC, according to Citigroup.
Source: E-Malt news
Diageo owns 200 brands, with sales in over 180 countries, including the world’s best-selling Scotch whisky brand Johnnie Walker.
Citigroup predicted Scotch sales could rise by as much as US$2.9bn over time.
Pernod, however, is expected to benefit more from the possible trade deal than Diageo, Citi added.
This is because Pernod owns 100% of its operations, nonetheless, all Scotch importers to India will still welcome the news.
Citi reiterated its ‘buy’ rating on Pernod.
Company profile: Diageo plc, Corporate Communications, Great Britain and N.I., London
Company profile: Pernod Ricard USA, US Headquarters, USA, Purchase
