India: Inbrew Beverages buys 32 spirits brands from Diageo

Inbrew Beverages Pvt Limited has agreed to buy 32 spirits brands from United Spirits Ltd (USL), the Indian arm of Diageo, the latter announced today. The deal includes brands like Haywards, Old Tavern, White-Mischief, Honey Bee, Green Label and Romanov and follows the strategic review of selected popular brands of USL. It has a total cash consideration of approximately INR 8.2 billion (USD 106 million) subject to customary adjustments.

Inbrew is indirectly owned by London based non-resident Indian businessman Ravi Deol who bought the Indian beer business of Molson Coors last year. (, 25.02.2021)

InBrew and USL have also entered into a 5-year franchise arrangement for 11 other brands, including Bagpiper with the right to convert the fixed term franchise arrangement into one with perpetual rights to use and/or a call option to acquire the brands at a pre-agreed consideration.

The brands McDowell’s and Director’s Special are not included in the deal and will be retained by USL.

The sale portfolio covers the entire business undertaking associated with the 32 brands, including the related contracts, permits, intellectual property rights, associated employees, and a manufacturing facility.

 “The acquisition of these iconic brands provides Inbrew with a unique platform to extend its ambition of becoming India’s trusted household beverage,” said Ravi Deol, Chairman of InBrew. “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.”

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.”

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