United Spirits Limited (USL) has signed a deal with Inbrew Beverages for Inbrew to buy 32 local Indian spirit manufacturers for around US$100 million.
This move is anything but a retreat for India’s largest spirit company. USL – also known as Diageo India, It said it would retain ownership of high-end and premium Indian spirits, according to the company.
Although the company has taken some financial hits this last year, Diageo’s chief executive Ivan Menezes has told analysts that Diageo was playing the “long-game” in India where 100 million people are predicted to enter the market for alcohol over the next five years. Already, India is one of the fastest-growing alcoholic beverages markets, with an estimated market size of US$52.5 billion in 2020.
Hina Nagarajan, managing director & CEO of USL, commented: “The transaction reflects the continued evolution of the management of the popular portfolio since 2016, when the company moved to a franchise model in many states, to enable a sharpened focus on ‘Prestige & Above’. This is a significant move to reshape our portfolio in service of our publicly stated mission to deliver sustained double digit profitable top-line growth.”
Ravi Deol, Chairman of Inbrew, said: “The acquisition of these iconic brands provides Inbrew with a unique platform to extend its ambition of becoming India’s trusted household beverage company. These brands have delighted consumers over generations, and we are excited at the prospect of strengthening this legacy. Inbrew will revitalise these brands through expanded distribution, innovation, and investments. After the acquisition of Molson Coors’ beer business last year, we will now participate in the mainstream spirits category, making Inbrew India’s diverse AlcoBev player.”
USL is the country’s leading beverage alcohol company and a subsidiary of global leader Diageo PLC. The company manufactures, sells and distributes an outstanding portfolio of premium brands such as Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, Royal Challenge, McDowell’s No1, Smirnoff, and Captain Morgan. Headquartered in Bengaluru, our wide footprint is supported by a committed team of over 3,300 employees, 49 manufacturing facilities across states and union territories in India, a strong distribution network and a state-of-the-art technical centre.
