World: Diageo agrees to rename one of biggest-selling whisky brands on demand from the Scotch Whisky Association

Diageo has agreed to rename one of its biggest-selling whisky brands and end exports of another after a tussle with the Scotch Whisky Association (SWA) over its misleading links to Scotland, The Drinks Business reported on April 1.

The world’s biggest spirits producer has reached a deal with the SWA over the branding of its McDowell’s No. 1 in markets outside of India, and said it will end exports of its Bagpiper brand, according to reports by the Wall Street Journal.

Both McDowell’s and Bagpiper are Indian whiskeys, whose origins are widely understood within the country. However the SWA argued that outside of India many consumers mistakenly assume they are Scotch whiskeys because of their name and references to Scotland.

Produced by Diageo’s Indian business, United Spirits, McDowell’s No. 1 is the world’s second-largest whiskey brand by volume behind fellow Indian whisky brand Officer’s Choice, according to IWSR.

Around 25 million nine-litre cases of McDowell’s No. 1 whisky were sold in 2014, compared to just under 19 million cases of Johnnie Walker, Diageo’s flagship Scotch.

While they are two of Diageo’s biggest-selling whiskys, only tiny amounts are exported from India, where Diageo will be allowed to maintain both brands’ original names. Just 0.3% of Bagpiper and 2.6% of McDowell’s No. 1 is sold abroad, according to industry tracker IWSR, with McDowell’s due to be renamed in markets such as Abu Dhabi, Dubai and Nigeria.

“We have come to an agreement with the SWA in relation to Bagpiper and the labelling of McDowell’s in markets outside India,” Diageo said in a statement. “We will now be working through a transition period to implement the changes which will remove Scottish references. The precise timelines and detail of these changes have still to be worked through but we are pleased to have reached a solution that works for all parties.”

The new name for McDowell’s is yet to be confirmed. Diageo will be able to continue selling McDowell’s and Bagpiper whiskies under their original names in India.

A spokesman for the Scotch Whisky Association said: “The SWA monitors carefully any use of Scottish names on spirit drinks that are not Scotch Whiskies in world markets. Following its take-over of USL, the SWA has had helpful and positive discussions with Diageo about the Bagpiper and McDowell’s brands, with agreement reached on those brands in markets outside India.

“In India, where these brands have been on sale for several decades, it is understood that McDowell’s and Bagpiper have a reputation locally as Indian brands. The situation is clearly different in markets outside India where the brands are not well known. Details of the agreement and transition arrangements remain confidential to the parties.”

06 April, 2016