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Yahoo
an hour ago
- Business
- Yahoo
United Spirits rebuffs talk of Diageo IPL asset review
United Spirits has said reports Diageo is mulling its options for its interest in IPL cricket team Royal Challengers Bengaluru are 'speculative'. Citing unnamed sources, Bloomberg said Diageo, which owns the side through its controlling interest in United Spirits, had held talks with possible advisors. In a brief stock-exchange filing today (10 June), the publicly-listed United Spirits said: 'The company would like to clarify that aforesaid media reports are speculative in nature and it is not pursuing any such discussions'. Last month, Diageo CFO Nik Jhangiani said the drinks giant could make 'substantial changes' to its product portfolio in the form of asset disposals. Speaking to analysts, Jhangiani said Diageo had identified opportunities to offload assets that were different in scope to the deals the Johnnie Walker maker had conducted in recent years. 'Clearly we see through our reviews that we've been doing internally and with the board some opportunities for what I would call substantial changes versus portfolio trimming,' Jhangiani said. 'I can't say any more than that but clearly it's going to be above and beyond the usual smaller brand disposals that you've seen over the last three years.' Diageo has offloaded assets including rum brands Cacique and Pampero and Safari liqueur. The group has also sold assets in Africa, although in October it reportedly called off the sale of its Pimm's gin-based liqueur after failing to secure an agreement with potential buyers. Jhangiani was speaking after Diageo announced plans to save around $500m in costs over the next three years. United Spirits acquired its interest in RCB in 2008. According to Diageo's annual report, the group owns just under 55.9% in United Spirits. "United Spirits rebuffs talk of Diageo IPL asset review" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Irish Examiner
5 days ago
- Business
- Irish Examiner
Guinness 0.0 sales up 27%, with plans for €30m investment at St James's Gate
Sales of Guinness 0.0 in bars have grown 27% in the last year, with the non-alcoholic version to take up 12% of total stout production at the Dublin brewery next year. Guinness 0.0 - known to many people as Guinness Zero - is now available in 4,000 pubs, restaurants and hotels across the island of Ireland. New figures released by Diageo show that the non-alcoholic stout has enjoyed a huge 161% increase in yearly volume on-trade sales between June 2022 and March 2025. 'The growth of Guinness 0.0 over the last three years demonstrates the enormous appetite consumers have for greater choice in what they are consuming," said Ross Bissett, Diageo Ireland on-trade commercial director. This growth is set to continue into 2026 when an additional €30m investment into Guinness 0.0 production capacity comes on stream, allowing the St James's Gate brewery to brew 176m pints of Guinness 0.0 a year for international and domestic markets. "We expect Guinness 0.0 to take up about 12% of all production at St James's Gate which is a testament to the sheer demand we're seeing and the incredible high-quality product our teams continue to produce here in Dublin 8," said Mr Bissett. Overall, Guinness 0.0 serves on the island of Ireland across can, draught and micro-draught cans in pubs, hotels and restaurants grew by 35% in the year to March 2025. First launched five years ago, Guinness 0.0 is now the biggest selling non-alcohol brand in the UK. Last month, Guinness owner Diageo's finance chief Nik Jhangiani said it would not be selling the iconic Irish brand as part of an asset sale plan, finance chief Nik Jhangiani said on Tuesday. Guinness saw net sales grow by 13% over the half-year to December. The stout's extraordinary growth, fuelled by TikTok trends to 'split the G', makes the Irish brand the star for Diageo during a difficult trading period globally. Guinness saw net sales grow by 13% over the half-year to December. The world's top spirits maker forecast a $150m hit from US president Donald Trump's tariffs, and has launched a $500 (€437m) cost-savings programme. Indeed the entire global alcohol sector has been facing some sober realities recently. This week, Remy Martin joined joins peers Diageo and Pernod Ricard in withdrawing sales targets that had become widely seen as overly ambitious as the sector endures a slowdown from previous boom years for pricey liquors.
Time of India
21-05-2025
- Business
- Time of India
Scotch whisky set to become cheaper: Diageo to cut prices in India as UK trade deal slashes duties
British liquor company Diageo Plc plans to reduce Scotch whisky prices in India in the higher end of single-digit percentage range as a result of the recently announced India-UK free trade agreement . The global leader in spirits anticipates that the FTA implementation will be completed in fiscal 2027, which will ultimately benefit consumers in the world's largest whiskey market. The UK-based spirits giant said that once the recently signed India-UK FTA is fully implemented, it will pass on the benefits of lower import duties directly to consumers, benefiting Indian drinkers. At present, India constitutes the largest whiskey consuming market and is Diageo's largest client by volume and second-largest by value. Nik Jhangiani, Diageo's chief financial officer, quoted by ET, said, 'This (FTA) will take some time to embed into legislation. I think the belief right now is it will come in fiscal year 2027, but we will keep watching that, so that will start flowing through.' The impact of FTA on scotch whiskey Under the terms of the FTA, tariffs on UK-made whisky and gin will be slashed from around 150% to 75% initially, which will further come down to 40% over the next decade. This could lead to a price drop of around 20–22% on some products, although the actual impact will depend on a range of factors including local state taxes and whether companies adjust their pricing strategies accordingly. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Switch to UnionBank Rewards Card UnionBank Credit Card Apply Now Undo Scotch whisky currently holds only 4% of India's total whisky market, as high import duties have kept it expensive. Sales of Scotch single malts in India slowed in 2024 as drinkers began turning to Indian-made alternatives, but Diageo hopes the FTA deal will reignite the demand. World's biggest whiskey producing company, which makes Johnnie Walker, Tanqueray and Smirnoff, expects a high single-digit drop in consumer prices to trigger a similar jump in volumes. At present, customs duties account for about a fifth or 20% of the final retail price of Scotch in India, with the rest coming from production costs, marketing, and hefty state taxes. Industry experts, however, have warned that while the FTA opens the door to new UK whisky brands and offers consumers greater variety, it may not lead to uniform price reductions across states. 'We believe the consumer price of scotch could come down by at least 20-22% but that will largely depend on local taxes and how companies work backwards on their calculations,' ET quoted an industry expert. As per IWSR or International Whiskey and Spirits Record, on shelf prices could go down by 30%. However, realistically only 10% could be saved on BIO scotch. Several liquor companies are already selling at lower-than-ideal prices to make up for high taxes. Ironically, states are likely to oppose any price cuts because it would mean losing revenue. 'FTA, as far as is presently known, does not remove any of the extensive red tape that characterises doing business in the Indian alcohol market,' said Jason Holway, senior research consultant at IWSR. 'Brands and labels will still need to register annually state by state, with licence fees paid. There are opportunities, but they will not necessarily be easier to access.' The IWSR also highlighted concerns around minimum import pricing and non-tariff barriers. While the risk of predatory pricing or dumping appears low for now, it warned that a price war 'can't be ruled out just yet', particularly with most players focusing on premiumisation to boost margins. The industry body said it's still unclear whether two key concerns of the Indian industry have been addressed: setting a minimum import price per case to prevent dumping and predatory pricing, and removing non-tariff barriers to support Indian exports. "Initial analysis suggests an outbreak of predatory pricing or dumping, which would demand a response from the Indian Customs authorities, is unlikely, particularly when most players, domestic and imported alike, are premiumising portfolios so as to maximise margins. That said, a price war can't be ruled out just yet," it added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Irish Post
21-05-2025
- Business
- Irish Post
Guinness to open new Covent Garden location while cutting costs elsewhere
DIAGEO, the parent company of Guinness, has announced a $500 million cost-cutting plan along with significant asset disposals by 2028. Amidst these measures, the Guinness brand is highlighted as a key element for future growth by their owner. Diageo, the global drinks giant behind Johnnie Walker, Tanqueray and Guinness, is operating in difficult times for the global drinks industry. With falling sales, investor anxiety, and mounting debt, the company is launching a financial reset. According to CFO Nik Jhangiani, the savings will come from streamlining trade investments, advertising, and supply chains, with an eye toward achieving $3 billion in annual free cash flow by 2026. Despite plans to offload some significant assets, Guinness is notably not on the chopping block. CEO Debra Crew reaffirmed that 'nothing has changed' regarding the status of the stout powerhouse—Guinness remains central to Diageo's portfolio. This decision reflects Guinness's continued commercial strength, especially in markets like Britain and Ireland. That expansion is taking physical shape in the form of a £73 million investment into Guinness at Old Brewer's Yard, a massive brewery and visitor experience slated to open in London's Covent Garden by the end of 2025. The project, originally delayed by the collapse of the lead contractor, marks the return of brewing to the area for the first time since 1905. The new Open Gate Brewery in London will join sister sites in Dublin, Baltimore, and Chicago. It's expected to attract up to half a million visitors annually and create 250 jobs across a 54,000-square-foot site. While traditional Guinness won't be brewed there (all European Guinness continues to be produced in Dublin), the microbrewery will craft more than a dozen limited-edition beers, including low-alcohol options under head brewer Hollie Stephenson. Beyond beer, it will feature multiple dining options and serve as the southern British base for Diageo's Learning for Life hospitality training programme, teaching over 100 bartenders each year. Despite supply chain issues that caused temporary shortages in London pubs last Christmas, Guinness remains one of the most in-demand beers in the UK, currently number two, just behind San Miguel. Current estimates suggest that one in every ten pints pulled in London is for Guinness. See More: Business, Covent Garden, Guinness
Time of India
21-05-2025
- Business
- Time of India
Diageo to cut liquor prices in India as UK trade deal slashes Scotch duties
Mumbai: Diageo Plc will cut liquor prices in the high single-digit percentage range in India to fully pass on the benefits of lower Customs duties following the recent India-UK free trade agreement . The world's biggest liquor company expects the FTA to be fully implemented only from fiscal 2027, benefiting drinkers in the world's biggest whiskey consuming market. "This (FTA) will take some time to embed into legislation. I think the belief right now is it will come in fiscal year 2027, but we will keep watching that, so that will start flowing through," Nik Jhangiani, chief financial officer at Diageo told analysts on Tuesday. "We intend to pass that through to consumer pricing fully. That is the whole idea of being able to really drive more growth in what is (already) an exciting category." Diageo follows the July-June financial year. For the UK-based firm, India is its largest market by volume and second by value. As per the FTA, tariffs on UK-made whisky and gin will be halved to 75% initially, eventually dropping to 40% over a 10-year period. Scotch whisky, the biggest global spirits segment by volume, has a 4% share of India's total whiskey market as high taxes make them pricier. In 2024, sales of scotch single malts slowed as Indian consumers gradually shifted to local malts. The maker of Johnnie Walker, Tanqueray and Smirnoff said benefits from the FTA will translate into lower prices, depending on categories within scotch in terms of bottle and origin (BIO) versus bottled in India (BII). "If you look at that reduction of about 150% down to the 75% initially, that will enable probably a high single-digit decrease in consumer price, and we believe that should drive a similar high single-digit percentage increase in volumes. Clearly, the intent is to pass through fully," he said. Customs duties make up about 20% of the shelf price for scotch, with state taxes, production, and marketing costs contributing the rest. "The FTA will lead to better pricing on bulk whisky for India, opening up the market for new UK whisky brands and exposing Indian consumers to relatively smaller scotch whisky brands and casks. We believe the consumer price of scotch could come down by at least 20-22% but that will largely depend on local taxes and how companies work backwards on their calculations," said an industry expert. According to industry body IWSR, some industry commentators are suggesting an up to 30% drop in on-shelf prices though the realistic saving is likely to be around 10% for BIO scotch. Also, the savings will not be apparent across states, and may not be passed on to the consumer, at least not in the short-term, it said. Several liquor companies are already invoicing at lower-than-ideal prices to compensate for the high duties, and paradoxically, states will be resistant to any price reductions due to revenue losses. "FTA, as far as is presently known, does not remove any of the extensive red tape that characterises doing business in the Indian alcohol market. For instance, brands and labels will still need to register annually state by state, with licence fees paid. There are opportunities, but they will not necessarily be easier to access," said Jason Holway, senior research consultant at IWSR. IWSR said it is unknown, as yet, whether two of the Indian industry's concerns have been addressed: minimum import pricing per case to prevent dumping and 'predatory pricing' and the removal of non-tariff barriers to help boost Indian export opportunities. "Initial analysis suggests an outbreak of predatory pricing or dumping, which would demand a response from the Indian Customs authorities, is unlikely, particularly when most players, domestic and imported alike, are premiumising portfolios so as to maximise margins. That said, a price war can't be ruled out just yet," it said.
