INDIA: UB snatches Associated Breweries from under SAB's nose
United Breweries has acquired a 65% stake in Mumbai-based Associated Breweries & Distillers (ABD), the manufacturer of London Pilsner beer, for Rs50 crore ($11m).The deal comes only two months after South African Breweries (SAB) came close to buying ABD, according to the Indian press. One source said: "With this acquisition, UB has put in place a defence against possible invasion of the western India market by SAB which has already made its presence felt in North India by taking over Narang Industry's brewery."The deal is a strategic acquisition for UB, who are currently preparing for the anticipated increase in competition in India, as the market liberalises, by consolidating its number one position.UB has also acquired through the deal the exclusive licensing for the manufacture of Philippine beer brand San Miguel, the exclusive rights for which are currently held by ABD.UB group chairman Vijay Mallya said: "I am delighted both professionally and personally that UB was able to conclude a transaction with the Irani family who own ABD, and who did a wonderful job establishing London Pilsner and several other brands of beer."He went on to say that the transaction took only three weeks from the date of offer until the date of closure.ABD's sales last year in Maharashtra were valued at over Rs 35 crore. Besides London Pilsner, its brands incude London Diet, Maharaja Premium and San Miguel which are manufactured at its brewery in Thane.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-drinks gives you the widest beverage market coverage.
Paid just-drinks members have unlimited access to all our exclusive content - including 14 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Olly Wehring, editor of just-drinks
- Analysis - Remy's Cognac "dead-cat bounce"
- Comment - How Hand-Made is Tito's Handmade Vodka?
- Heineken to stay "active player" in beer M&A - CFO
- Diageo's future brighter than present suggests
- Focus - Pernod Ricard's Q1 sales by brand
- Moët Hennessy unveils first Travel Retail outlet
- United Spirits sees Q1 net loss
- Beam Suntory, Edrington part ways in Travel Retail
- Diageo puts Beckham centre stage in Haig Club ad
- Smirnoff Ice gets India launch