UK & India: Scotch whisky industry expected to benefit by free-trade agreement between the UK and India
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.
Diageo owns 200 brands, with sales in over 180 countries, including the worlds 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.