United Spirits Limited, India’s largest spirits firm promoted by billionaire Vijay Mallya’s UB Group, is looking at various options to continue its bulk supply of scotch from the stables of Whyte & Mackay, which USL acquired during mid-2007 in a $1.7 billion deal.
W&M had a three-year bulk supply agreement with world’s largest spirits company Diageo at the time of the acquisition and is coming to an end during this year.
“As the bulk supply agreement, which contributes around 30 per cent of Whyte & Mackay’s order book, is coming to an end in 2010,
we are talking to a number of global players to continue our bulk supply,” Vijay Mallya, chairman, UB Group noted.
He added that W&M scotch inventory is of immense value and will not resort to short-term gains. “Bulk sale do bring in revenues. However, we are exploring options of leveraging the inventory through brand sales as the returns are much higher than bulk sales,” he said adding, W&M is not resorting to revising the guidance downwards in the near future.
