Diageo worried Scottish independence may give it a hangover

The head of Diageo Plc, which controls 40 per cent of Scotch whisky production – and which now has a presence in India through United Spirits Ltd – says that conflicts over currency and new tax arrangements after Scottish independence could damage one of Scotland's biggest industries.

Ivan Menezes, the company's chief executive, also told The Wall Street Journal this week that it was extremely important for his company and the whisky industry to remain within the European Union and to maintain free trade agreements.

Menezes' remarks, the most forthright so far from the spirits giant, came as an investigation by The Guardian newspaper found that more than 80 per cent of its whisky industry is owned by non-Scottish firms.

The investigation has found that Scotland's national wealth, the income owned and kept in Scotland, is worth up to £20 billion less than its headline GDP figure of £144.7 billion because of the extent of foreign ownership of key industries including North Sea oil and gas, its financial sector and whisky.

While refusing to make a clear statement for or against independence, Menezes told the paper, "What we will fight for is keeping our industry competitive and thriving, and we're very clear on what that requires." Menezes was speaking as the referendum entered its official campaign period, during which leading campaigners are subject to spending restrictions ahead of the 18 September vote.

Menezes also disclosed that his company, one of the most powerful in Scotland, had spoken in detail to senior figures on both sides of the independence debate. "We're being very proactive in ensuring the health of this industry is protected," he said.

The largest producer of whisky, including brands such as Talisker and Lagavulin, Diageo will be taking an intense interest in the referendum. It cannot move any Scotch whisky production out of Scotland because of very strict legal definitions of Scotch and the damage such a move would cause the brand.

"Unlike other businesses, we can't pick up and leave Scotland," Menezes said. "We're there to stay."

Other major firms, including the mortgage and investment firm Standard Life, have warned they will move large amounts of their non-Scottish business to England in the event of a "yes" vote for Scottish independence.

The Guardian's investigation found that Diageo owned 39.6 per cent of total production in 2012 and controlled a further 2.8 per cent through Whyte & Mackay.

It has been forced by competition authorities to sell off Whyte & Mackay.

Diageo's company accounts disclose that its whisky businesses, which include the world's best-selling brand Johnnie Walker, were worth 36 per cent of total net sales of £10.76 billion in 2012.