India: United Spirits completes sale and franchising of 32 brands to Inbrew Beverages
Diageo-controlled United Spirits Ltd (USL) on Friday, September 30 said it has completed the sale and franchising of 32 popular brands to Singapore-based Inbrew Beverages. The company has also given franchise rights of another 11 popular brands to Inbrew Beverages for five years with an option to extend to "perpetual rights to use", subject to certain conditions, USL said in a regulatory filing, the Economic Times reported.
Earlier on May 27 this year, USL had announced the sale of the entire business undertaking associated with 32 brands, including iconic brands Haywards, Old Tavern, White-Mischief, Honey Bee, Green Label and Romanov for a total cash consideration of approximately Rs 820 crore.
The deal was subject to approval from shareholders and some customary clearances.
"On 30 September 2022, USL has completed the slump sale of the entire business undertaking associated with 32 brands in the 'Popular' segment to Inbrew Beverages Private Ltd," the company said.
USL said the transaction reflects its sharpened focus on the "Prestige and Above" segment and "is a significant step forward in the service of our publicly stated mission to deliver sustained double-digit profitable top-line growth".
The closing of the transaction was subject to the approval of the shareholders of the company and certain other customary closing conditions as described in the definitive documents.
"The shareholders of the company approved the transaction at the annual general meeting held on 9th August 2022. All other closing conditions were also duly completed or otherwise addressed as agreed between the parties," it added.
USL's popular portfolio comprises around 30 entry-level lower-priced liquor brands, with an average price of less than Rs 400 for a 750 ml bottle, and straddle whisky, rum, brandy, vodka and gin.
Inbrew, which has beer brands, such as Thunderbolt and Miller, in its portfolio, aspire to have a wide range of alcoholic to non-alcoholic beverages through both acquisition and franchising models.
Last year Inbrew acquired North American lager producer Molson Coors' Indian beer business.
Headquartered in Bengaluru, USL is the country's leading beverage alcohol company and a subsidiary of global leader Diageo PLC.
It sells and distributes a portfolio of premium brands such as Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, The Singleton, Royal Challenge, McDowell's No1, Smirnoff, Ketel One, Tanqueray and Captain Morgan.
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