India-UK Trade Deal Spurs Liquor Price Cut: Diageo's Big Booze Bet

United Spirits Ltd, part of Diageo, foresees a high single-digit drop in consumer prices of imported liquor in India and additional volume growth following the India-UK free trade agreement. This move aims to pass on the benefits of duty reductions on UK whisky and gin to consumers.

United Spirits Ltd, a division of the British alcoholic beverage giant Diageo, expects a significant decrease in consumer prices for imported liquor in India due to the India-UK free trade agreement. This announcement was made by the company's top management during an investor call.

Managing Director Praveen Someshwar and CFO Pradeep Jain stated that Diageo India intends to transfer the duty reduction benefits from the trade pact to consumers. They highlighted that the reduction of duties from 150% to 75% should result in a high single-digit decrease in consumer prices.

The agreement, effective earlier this month, reduces duties on UK whisky and gin further to 40% over the next ten years, presenting new opportunities for Diageo's global portfolio in India, especially in its Bottle-in-Origin category.

(With inputs from agencies.)