Diageo’s majority-owned Indian business, United Spirits, has taken “strategic minority investments” in domestic start-ups V9 Beverages and Indie Brews and Spirits.
V9 Beverages is a zero-alcohol spirit distiller that was founded in 2020. Its range includes Sober Gin, Sober Whiskey and Sober Rum.
United Spirits has bought a 15% stake in the New Delhi-headquartered company for Rs22.9m ($273,570).
The group has also taken a 25% stake in Indie Brew and Spirits for Rs50m. Founded in 2022 in Chennai, Tamil Nadu, Indie Brew and Spirits produces cold-brew-coffee liqueur.
“In line with our strategy of exploring opportunities in new growth engines, these strategic minority investments allow us to partner with breakthrough start up entrepreneurs to experiment in the emerging consumer trends of the non-alcohol and coffee liqueur category, respectively,” United Spirits said.
“We will explore appropriate mechanism to enhance market reach of these brands and support in other areas of planning and business growth.”
In United Spirits' first quarter results ending 30 June, it posted revenue of Rs58.61bn ($700.1m), down year on year from Rs66.23bn. Profit stood at Rs2.99bn, down from Rs3.87bn in the three months to June 2023.
In April, United Spirits took a 15% stake in Inspired Hospitality, an Indian producer that owns agave-spirit brand Pistola, for Rs56m.
If Pistola hits “pre-agreed milestones” United Spirits has the option to acquire remaining equity held by other shareholders.
United Spirits has 36 manufacturing facilities across India, roughly 2,600 staff and a portfolio of 28 brands that includes Johnnie Walker, Smirnoff and Captain Morgan.
In 2020, United Spirits agreed to the sale and franchising of more than 40 brands in the country to Inbrew Holdings.
The deal saw 32 brands in United Spirits’ so-called “popular” portfolio – such as White-Mischief, Haywards, Old Tavern and Honey Bee – sold to Inbrew. Included in the agreement was the franchising of another 11 brands, notably Bagpiper whisky, for five years.
