Thailand accounts for an estimated 5% of Diageos global Johnnie Walker volumes

Thailand accounts for an estimated 5% of Diageo's global Johnnie Walker volumes

Johnnie Walker-owner Diageo is the most exposed to a ban on alcohol in Thailand following the death of the country's king, an analyst has said.

The Thai government has called on the country to avoid "joyful events" for 30 days in respect to the King Bhumibol Adulyadej's death last week. It has also banned the public consumption of alcohol for an indefinite time.

Jefferies International's Edward Mundy said yesterday that although just 1% of Diageo's profits are made in Thailand, its large whisky footprint in the country makes it the global spirits producer most at risk from the ban. Mundy predicted "near-term volatility" in the country but said alcohol demand should return to normal after the 30 day period, "albeit with a greater degree of moderation".

According to Mundy, Scotch whisky accounts for 75% of imported spirits volumes in Thailand, however local spirits account for 98% of the overall Thai market. Mundy estimates Thailand accounts for about 5% of Diageo's global Johnnie Walker volumes.

Media reports said the alcohol ban could have an effect on tourism to Thailand, with travel operators braced for disruption.

The disruption in Thailand is more bad news for Johnnie Walker. Last week, the blended Scotch slipped three places to 95th in a list of the world's most powerful brands.

King Bhumibol died aged 88 after serving 70 years as the Thai monarch.