SWA body looks to resolve United Spirits membership issue

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Bangalore, April 23

The Scotch Whisky Association (SWA) is hopeful of resolving the membership of Vijay Mallya-controlled United Spirits , an association spokesperson said here. "In recent months, we have had wide ranging discussions with the owners of Whyte & Mackay about SWA membership and the obligations flowing from that. We are continuing those talks and hope they will reach a successful conclusion," a spokesperson for SWA told Business Line.

The latest tangle arose after United Spirits reapplied for a membership with the association recently as it expected to get into SWA based on its recent acquisition of the Scottish Whyte & Mackay. But the association is learnt to have read out the same rule book to United Spirits again stating that unless the parent conforms to its definition of whisky, it will not be able to grant membership to the Indian company. SWA has maintained that it does not recognise whisky unless it is made out of cereals. The Indian manufacturer makes whisky from sugarcane molasses.

Dr Vijay Mallya, who owns United Spirits, had earlier said that there was no reason for European manufacturers to oppose whisky made from ingredients other than cereal. He had pointed out that while European manufacturers want a share of the fast growing whisky market in India, they are against the entry of Indian-made whisky into the European markets. With growth rates of over 35 per cent, India is considered the world's largest and the fastest growing market for whisky. But imported whisky has a mere 1 per cent share of the domestic whisky market.

Taken from Business Line

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