Diageo: a turncoat?

Whose side is Diageo on: Britain’s or Scotland’s? Well, that’s the question which had the Sunday Times newspaper spewing bile on 5 June 2016. With the vote on Brexit coming up on 23 June 2016 and the campaign turning more and more unsavoury, both sides in the debate are lining up their supporters.

Diageo’s CEO Ivan Menezes has vocally endorsed the Remain (in the EU) camp. Now he is being accused of “intellectual gymnastics” by the Sunday Times because, when Scotland had its independence referendum two years ago, he wanted Scotland to remain part of the union. This time, he may support another Scottish independence referendum in case Britain decides to leave the EU.

Mr Menezes, it is understood, will not speak up in public on behalf of Scottish independence, but he will not endorse the union either.

The paper calls this “mental contortions”, as befitting an executive who is usually given the epithet “Indian-born”.

Diageo has drawn ire from the Brexiteers because allegedly Diageo has put up emergency plans to cope with Scotland leaving the UK in the event of a pro-Brexit vote.

To me, Diageo’s Mr Menezes is not engaged in any form of turncoatism. He merely has Scotland foremost on his mind. Scotland is a key part of Diageo’s empire, with Scotch whisky accounting for a quarter of Diageo’s revenues. Hence, access to the EU and its network of global trade deals is of utmost importance to Diageo.