Latest news with #ChivasBrothers
The Herald Scotland
4 days ago
- Business
- The Herald Scotland
Scotch whisky giant Diageo chief executive faces huge task
The ongoing strife appeared to reach its nadir at Diageo last month, when it parted company with chief executive Debra Crew with immediate effect, by mutual agreement. Ms Crew had been little more than two years in the role. A tumultuous reign saw her preside over a slump in sales in Latin America that led to the company issuing a profit warning in November 2023, and the launch of a major cost-cutting drive in May this year in response to President Donald Trump's global tariffs campaign, which is having a major impact on Scotch exports to the US. But her pledge to deliver around $500m of cost savings failed to move the City, as Diageo's share price continued to falter and, according to reports, faith in Ms Crew's ability to reverse the situation steadily eroded. An announcement to the stock market on July 16 confirmed her departure, with Mr Jhangiani - a relative newcomer to Diageo - stepping into the role on an interim basis. It can certainly be argued that Ms Crew was dealt a difficult hand. Many of the difficulties Diageo has endured over the last couple of years have affected other major companies too, including Chivas Brothers parent Pernod Ricard, and Remy Cointreau, owner of the Bruichladdich Distillery. In July, Glasgow-based Edrington, owner of The Macallan and Highland Park, cited a 'hostile trading environment' as it reported a 26% slide in profits to £274.4m for the year to March 31. That was followed by a similar profits fall at William Grant & Sons, owner of Glenfiddich: its profits dropped by 30% to £388m in 2024. Read more: Such struggles were also writ large in export figures released by the Scotch Whisky Association in February, which revealed the value of exports dipped by 3.7% to £5.4bn in 2024. Ms Crew was not the architect of the macroeconomic upheaval that has swept across the global spirits markets over the last couple of years, or the uncertainty sparked by US tariffs. Neither was she responsible for the rise in 'moderation' and shunning of alcohol by increasing numbers of younger adults, which is increasingly presenting a challenge to spirits producers. But it is tough at the top of the drinks business and at any rate that is all in the past now, and when market watchers tuned in on Tuesday it was to see where Diageo goes from here. And it seemed that at least some in the City liked what Mr Jhangiani, who joined Diageo as chief financial officer in September, had to report. Shares in the company leapt by nearly 5% on the day and gained a further 4% on Wednesday, which may largely have been down to its pledge to go further with the cost-cutting plans initiated by Ms Crew, rather than because of of any improvement in the macroeconomic or geopolitical outlook. The company raised its cost-saving target under its Accelerate programme by $125 million to $625m over the next three years, which Mr Jhangiani said was 'not about' job cuts but finding cash for reinvestment in its brands. City observers may also have been encouraged by Diageo reiterating its commitment to undertake 'appropriate and selective disposals over the coming years'. Recent deals by Diageo have included the sale of its majority shareholding in Guinness Nigeria, and the agreement to swap its majority ownership of Ciroc vodka in North America for an interest in Tequila brand Lobos 1707. Mr Jhangiani was asked if the company would sell any of its Scotch whisky distilleries as part of its disposal programme but dodged the question to some extent. He said Diageo was continuing to grow its share of the Scotch whisky category and flagged the potential of building exports to India, following the recent signing of the UK-India free trade agreement. He said this would be good for Scotch and Scotland as a whole. Speaking more generally, Mr Jhangiani was at pains to talk up Diageo's strengths and 'fantastic brands', as well as encouraging performances by Don Julio Tequila, Guinness and Crown Royal Blackberry Canadian whisky in the year to June (for which the company reported a 27.8% fall in operating profit to $4.335bn). But he emphasised that the global economic backdrop remained challenging and that 'there is clearly much more to do' to boost the company's prospects. As Mr Jhangiani expanded on the work Diageo was doing to 'sharpen' its focus, many of the details he shared would have made more sense to drinks sales people and marketers than newspaper journalists. But some of it seemed so sensible that you wondered why the company was not already doing it, for example the development of individual strategies for Italy, Spain and France – given that people have different drinks preferences in these countries – instead of lumping them all together under the banner of Southern Europe. Doubtless, given the company's scale (it has more than 30,000 employees) and reach across the world, the process of learning how markets behave and how to respond to that is surely a never-ending process, and one that requires considerable ongoing investment. There will never be a situation when everything is plain sailing in all of the many countries within which Diageo operates. But while there are many things Diageo can control it remains, like all companies, at the mercy of macroeconomic and geopolitical headwinds that currently seem to be as bracing as they have been for many years. Fundamentally, whoever gets the top job at Diageo on a permanent basis will need those headwinds to settle down if they are to have any chance of success.
Forbes
30-07-2025
- Business
- Forbes
The World's Best Blended Scotch Whiskeys For Under $50-According To Experts
The five best blended Scotch whiskies for under $50 according to the 2025 San Fransisco World Spirit Competition. Sophia Lindenberger When it comes to Scotch whisky, blended bottles often get overshadowed by their single malt cousins. But that does a disservice to a category with deep roots and global reach. Blended Scotch has a long and proud history, dating back to the 19th century when merchants like Johnnie Walker and Chivas brothers began combining single malts and grain whiskies from different distilleries to create more consistent and approachable spirits. Today, blended Scotch remains the most widely consumed style of Scotch whisky in the world—accounting for roughly 90% of all Scotch sold globally. While it's not hard to lay your hand on a great blended scotch, there are tons of them out there, the best resemble their single malt relatives in carrying triple digit price tags. But as is often the case, a lower price tag doesn't quantify a lower quality liquid. You can score a fantastic, blended scotch cheaply if you know where to look. The San Francisco World Spirit Competition just released its list of the Best Blended Scotch Whisky Under $50 from its 2025 judging. All five of these bottles were awarded a Double Gold medal, its highest accolade, for scoring 97 points. If you're looking for elite flavor without the premium markup, these are the bottles worth tracking down. Launched a few years ago as part of a luxury lifestyle brand, D'YAVOL may seem like style over substance, but you couldn't be more wrong. This whisky proves otherwise. Made from a blend of unpeated and single grain whiskies from the Lowlands, Highlands, and Speyside, with peated Islay whiskies, VORTEX is bold, balanced, and full of personality. Expect layers of toffee, dried fruit, and spice, with a rich mouthfeel and long finish. It's a blend that punches above its price point and shows that a newcomer can compete with the established heavyweights. One of the most affordable on the list, High Commissioner is a no-frills blend from Loch Lomond Group that has quietly built a reputation for solid quality. It is a highly popular scotch whisky in the United Kingdom that is valued for delivering a consistently high-quality sip with every pour. It offers notes of sweet grain, honey, and light oak with a smooth and clean finish, making it an excellent everyday pour or cocktail base. What it lacks in pedigree, it makes up for in sheer drinkability. Formerly known as Naked Grouse (it was a line extension from The Famous Grouse), this is a thoroughly modern scotch that perfectly highlights the complexity that often is found in a great blend. By taking a blend of premium single malts, including Macallan, Highland Park, and Glenturret, and maturing it in first-fill sherry casks, they create a rich, full-flavored whisky. Naked Malt brings depth and a velvety texture, with notes of dried fruit, cocoa, and baking spice. It's the perfect dram for fans of sherry-forward whiskies who want something polished but accessible. The name may have changed, but the quality remains high. Monkey Shoulder Blended Malt Scotch This cult favorite has long been the bartender's choice for blended malt, and for good reason. Crafted from a mix of Speyside single malts, Monkey Shoulder has been pulling in major accolades since its launch in 2005. It is a smooth, approachable, and versatile whisky that consistently delivers. On the palate, it offers vanilla, citrus, malt, and a subtle creaminess. It's as good, neat as it is in a Rob Roy or Penicillin, making it one of the most flexible whiskies on the shelf. Noble Rebel Smoke Symphony Blended Malt Scotch The most adventurous of the bunch, Smoke Symphony comes from the Noble Rebel line, a new project by Loch Lomond Distillers. Designed to push boundaries, this scotch is made from a blend of single malts concocted under the watchful eye of Master Blender Michael Henry. This blend marries peat smoke with orchard fruit, toasted oak, and subtle spice. It's a contemporary take on smoky whisky, offering complexity without overwhelming your senses. For those who want a hint of Islay-style character in a refined Highland package, this is a top pick. Follow here for the most up to date information about the ever changing beer, wine, and spirits industry. MORE FROM FORBES Forbes The 8 Best Single Malt Scotch Whiskies Under $100 In 2025—According To Experts By Hudson Lindenberger Forbes These Are The Best Bourbons Of 2025 (So Far), According To Spirits Competitions By Hudson Lindenberger Forbes How To Read A Bourbon Label By Hudson Lindenberger
Time of India
24-07-2025
- Business
- Time of India
India-UK FTA: Scotch whisky, gin tariff cuts unlikely to impact retail prices
(You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Mumbai: Tariff cuts on Scotch whisky and gin will not lead to major price revisions, at least in the short term, as import duties currently make up only 10-15% of the total shelf price, say industry per the India-UK free trade agreement (FTA), tariffs on UK-made whisky and gin will be halved to 75% initially, eventually dropping to 40% over a ten-year executives emphasised that most global companies were already invoicing at lower-than-ideal prices to compensate for the high duties in state taxes, production, distribution and marketing costs remaining unchanged, tariff reduction will translate into less than 10% of their cost savings, which may not be passed entirely, they said."India is the world's biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands," said Jean-Etienne Gourgues, Chairman and CEO at Chivas Brothers . "The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade," Gourgues said, adding that he hopes both governments will move quickly to ratify and implement the whisky, the biggest global spirits segment by volume, has a 4% share of India's total whiskey market as high taxes make them pricier. While FTA will translate into lower cost, it will depend on categories within scotch in terms of bottled in origin (BIO) versus bottled in India (BII).Scotch imported in bulk for bottling in India or BII accounts for over three-fourths of scotch imports. Savings can therefore be made only on the liquid element with production and packing costs remaining unchanged, bringing prices at par with fully imported bottles.
Indian Express
24-07-2025
- Business
- Indian Express
India-UK CETA: Scotch whisky imports to get cheaper now with tariffs halved to 75%
After the India-UK Comprehensive Economic and Trade Agreement (CETA) signed today, scotch whisky imports from the UK are set to get cheaper for Indian consumers, with tariffs slashed from 150 per cent to 75 per cent. The landmark agreement does not impose minimum import price (MIP) rules on scotch imports, which had been a key demand of India's domestic industry. Under the agreement, India will immediately reduce tariffs by half to 75 per cent, and then to 40 per cent over ten years, once the deal is ratified domestically by the two countries. Scotch distillers in the UK have welcomed the reduction in tariffs, which will give them greater access to the world's biggest whisky market by volume. Whisky was the UK's fifth-largest export product to India in 2024-25, valued at roughly $260 million. 'The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade,' said Jean-Etienne Gourgues, chairman and CEO of Chivas Brothers, the firm behind popular whisky brands such as Chivas Regal and Ballantine's. India's domestic alcoholic beverage industry, however, has flagged potential dumping concerns with the reduction in tariffs. 'Though lowering of import duty on Scotch will help the domestic industry—as Scotch used to produce blended products will also get cheaper—we hope that the government will ensure that Scotch whisky and other spirits (BIO-bottled in origin) are not dumped at low import prices or routed through any other country at cheaper rates, which would hurt the YOY growth of premium and luxury Indian brands,' said Anant S Iyer, director-general of the Confederation of Indian Alcoholic Beverage Companies (CIABC), hours before the full text of the agreement was made public. To counter dumping, Iyer said the industry had recommended to the government to introduce MIP rules for scotch. However, the agreement does not impose any such requirements on scotch imports. 'With the import duty being cut drastically, it is high time that a number of state governments end all concessions—such as lower brand registration fees, reduced excise duties, etc.—currently extended to BIO brands,' Iyer said. 'This has created a situation where importing Alcobev products is becoming cheaper than producing it in India. With lower import duties, it will now become even more economical for MNC's to import their products. State governments should end all discrimination against India-made alcoholic beverages,' he added in a media note. Iyer also flagged lack of market access for Indian-made foreign liquor in the UK and EU due to non-tariff barriers related to maturation and ingredients. 'Though Indian whiskies, rum, gins, wines, etc., have been winning accolades globally, the lack of removal of non-tariff barriers and absence of reciprocal market access will make this export target hard to achieve,' he said. While tariffs on Indian exports of beverages, spirits, and vinegar have been eliminated entirely, non-tariff barriers are likely to remain. Opening up the Indian market to foreign liquor has been a contentious issue in trade talks, including those ongoing with the US and the EU. Earlier in February, when the government had slashed duty on bourbon whisky – a key US export – from 150 per cent to 50 per cent, the domestic industry urged states to withdraw all excise concessions given to imported liquor, arguing that the customs duty cuts would harm Indian products in both the spirits and wine categories. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More
The Herald Scotland
24-07-2025
- Business
- The Herald Scotland
Scotch whisky toasts major breakthrough in troubled era
UK Prime Minister Sir Keir and his Indian counterpart Narendra Modi today signed a free trade agreement (FTA) that both parties declared will bring major economic benefits to their respective countries. The deal is expected to pave the wave for significant investment by Indian companies to expand their operations in the UK and for British companies to boost exports to India (and vice versa) through the liberalisation of tariffs. The latter has been especially welcomed by the Scotch whisky industry, which has long highlighted the potential of India – the biggest whisky market in the world – as a lucrative overseas sales destination for the water of life. Read more: India has agreed to slash tariffs on Scotch whisky in half, with the import tax reduced immediately from 150% to 75% and then gradually cut to 40% over the next 10 years. Jean-Etienne Gourgues, chairman and chief executive of Chivas Brothers said: 'Signature of the UK-India FTA is a sign of hope in challenging times for the spirits industry. India is the world's biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine's. 'The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade. Let's hope that both governments will move quickly to ratification so business can get to work implementing the deal.' More generally, India's average tariff on UK products will drop from 15% to 3%, which the Government says will make it easier for British companies making everything from soft drinks and cosmetics to cars and medical devices to sell into India. UK exports to India are forecast to increase by 60% in the long run, equivalent to an additional £15.7 billion of UK exports to India when applied to projections of future trade in 2040. Bi-lateral trade is expected to rise by 39%, equivalent to £25.5bn a year, when compared to 2040 projected levels of trade in the absence of an agreement. However, behind the celebratory tone of the announcement lurks a slightly sobering factor: the boost to UK GDP from the deal with India will amount to 0.1% by 2040. This pales somewhat into insignificance compared with the 4% hit to UK GDP estimated to have arisen from Brexit.
