India’s United Spirits said on Thursday it is buying the maker of popular craft gins ‘Greater Than’ and ‘Hapusa’ in a deal valued at 1.3 billion rupees ($15.2 million), including debt, in a bid to boost its premium portfolio.
The Indian arm of spirits maker Diageo added that the company, NAO Spirits, has been part of the portfolio of its investment arm, Ventures.
NAO was launched in 2017. Its brand ‘Greater Than’ was India’s first craft gin, said United Spirits.
The deal comes at a time when rising disposable income among the upper middle class and richer Indians has led to higher demand for more expensive liquor, in tandem with more openness towards casual drinking and experimental offerings.
Local and authentic craft-oriented brands are well placed to cater to these trends, said United Spirits.
Hapusa, for example, can be priced at more than 3,000 rupees and, according to United Spirits, is one of the few craft gins in the world made with foraged Himalayan juniper and other botanicals.
Demand for premium liquor helped boost United Spirits’ standalone profit in the fourth quarter by 17% to 4.51 billion rupees ($52.72 million). Net sales value in the segment rose faster than overall sales growth.
Reuters
