Drinks Giants: Diageo, Pernod, AB InBev, Heineken — 2026-10-26
India has launched a formal investigation into Diageo and Pernod Ricard, alleging tax misclassification on bulk Scotch imports that could undermine the UK-India trade pact. Meanwhile, Pernod Ricard completed a €1.5 billion bond issuance as its stock remained stable, and negotiations continue regarding the removal of US tariffs on Irish whiskey.
Drinks Giants: Diageo, Pernod, AB InBev, Heineken — 2026-10-26
Top developments
India probes Diageo and Pernod Ricard over Scotch taxes
Indian tax authorities have initiated an investigation into Diageo and Pernod Ricard, alleging that they misclassified bulk Scotch imports to pay a 75% duty instead of the applicable 150% rate. The Indian Scotch Whisky Association (ISWAI) warned that this probe undermines the benefits of the recently negotiated UK-India trade pact, which was designed to lower barriers for premium spirits. This dispute poses significant risks to margins for the major producers in one of their fastest-growing markets.
Pernod Ricard completes €1.5 billion bond issuance
Pernod Ricard finalized a €1.5 billion bond issue on October 22, 2026, signaling continued financial maneuvering amid cautious market outlooks. The company’s stock traded at €67.58 in weekend trading on October 24, showing little change from the previous week. This issuance follows a period where analysts, including RBC, raised price targets despite noting that first-quarter sales fell 0.9 percent.
Irish whiskey tariff negotiations remain ongoing
Negotiations to remove US tariffs on Irish whiskey are still in progress, despite President Donald Trump’s announcement last month at his Doonbeg golf course suggesting the move was imminent. Irish media reports indicate that the formal removal of these duties has not yet been finalized, leaving the industry in a state of uncertainty. The delay impacts the competitive positioning of Irish producers against US bourbon and other spirits facing their own tariff hurdles.
Local view
India (Business Standard & Whalesbook): Local industry groups like ISWAI are actively criticizing the Directorate of Revenue Intelligence (DRI) probe, arguing it contradicts the spirit of the India-UK Free Trade Agreement. The local press frames this as a critical test of whether India will honor its trade commitments to major global spirits investors.
Ireland (RTÉ News): The Irish public broadcaster highlights the gap between political announcements and regulatory reality, noting that while the "headline" news of tariff removal was celebrated, the bureaucratic process remains unfinished. This local perspective underscores the ongoing friction in the transatlantic spirits trade.
Context & numbers
- Pernod Ricard Bond Issue: €1.5 billion completed on October 22, 2026.
- Pernod Ricard Share Price: Traded at €67.58 on October 24, 2026.
- India Duty Dispute: Authorities allege firms paid 75% duty instead of the claimed 150% on bulk Scotch.
On the radar
- Irish Whiskey Tariff Resolution: Watch for official US government confirmation on the removal of tariffs following the ongoing negotiations reported by RTÉ.
- India DRI Probe Outcome: Monitor statements from Diageo and Pernod Ricard regarding the specific financial exposure and potential legal challenges to the Indian tax authority's classification of bulk imports.
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