The $106m deal between Diageo’s United Spirits Limited (USL) and InBrew covers the entire business undertaking associated with the 32 brands, including related contracts, IP, permits, and manufacturing. The transaction does not include the McDowell’s or Director’s Special brands, which will be retained by USL.
In addition, USL and InBrew have entered into a five-year franchise agreement for 11 other brands, including Bagpiper.
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.”
InBrew expands beyond beer
The acquisition of the 32 brands will expand Inbrew’s portfolio beyond its current beer focus: working towards its vision of becoming a wide-ranging alcohol and non-alcohol beverage platform through both acquisition and franchising models.
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.”
The transaction is expected to complete by the end of September.