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Share Price: 544.80
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Whisky maker Diageo toasts Britain's EU membership

Thu, 28th Jan 2016 15:29

By Martinne Geller

LONDON, Jan 28 (Reuters) - Diageo, the world'slargest maker of Scotch whisky, supports Britain staying in theEuropean Union but its chief executive said he sees no dramaticimmediate effect on its business from a possible "Brexit".

The maker of Johnnie Walker Scotch, Smirnoff vodka andTanqueray gin was in favour of British membership because ofeasier trade within Europe and the rest of the world, ChiefExecutive Ivan Menezes told reporters on Thursday.

"We think it's very important for this country and forScotch whisky," Menezes said, calling Scotch the "largest andmost successful" food and drink export from Britain.

"Two thirds of our Scotch business goes to the emergingworld and so we see the UK being part of the EU ... asimportant," the India-born CEO said following the release of thecompany's half-year financial results.

Several large British businesses have spoken out in favourof the EU, often citing the benefits of tariff-less trade. Manysmaller firms have criticised the bloc for imposing what theyargue are costly regulations.

Airline easyJet said this week it would campaign forBritain to stay in, with its chief executive telling consumersthat membership encourages low cost travel between Europeancities.

After analysing various scenarios, Menezes said there wouldbe no dramatic impact in the near term, if Britain votes toleave the EU, but that it could have an effect in the longerterm.

"You're better off in free trade agreements if you've gotmore clout, and the EU brings more clout to the table," he said.

No matter what happens in a referendum that Prime MinisterDavid Cameron hopes to hold this year on Britain's membership inthe 28-nation bloc, Menezes said he's unlikely to move anyoffices or factories.

"I don't see us doing that," he said. "The thing aboutScotch whisky is we're going to be in Scotland come what may."

(Reporting by Martinne Geller in London; Editing by Keith Weir)

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