India: Latest beverage news & analysis
Finally, after almost 20 months, Diageo has got what it initially wanted in India. The company today (2 July) confirmed it now holds the majority of shares in United Spirits. This achievement, however, has cost way more than Diageo initially expected; to the tune of around US$1bn.
As expected, Diageo has stepped up its bid to take majority control of India’s United Spirits Ltd (USL). The UK-headquartered company has launched a tender offer for a further 26% stake in the UB Group unit, which, if successful would raise its stake to around 55%.
A survey of consumers in India has revealed that alcoholic beverages may have the most to gain from high levels of optimism in the country.
Five years ago this week talk of Diageo taking a stake in United Spirits first emerged. It set in train a series of events that this year saw the Smirnoff producer secure control of the Indian spirits firm.
Earlier this week, Tilaknagar Industries posted its Q1 results. At the same time, local reports suggested that Suntory and Pernod Ricard are both considering making a move to buy a 15% to 20% stake in the Indian spirits firm.
United Spirits has agreed a deal to acquire J P Impex Incorp's Karnataka factory for INR115m (US$1.9m).
Shareholders in United Spirits have approved the sale of its Scotch whisky unit, Whyte & Mackay, to the Philippines' Emperador Inc.
Diageo has confirmed the completion of its latest tender offer for shares in United Spirits and is now the majority controller of the Indian firm.
Indian wine company Grover Zampa has partnered with former tennis professional Vijay Amritraj to launch two wines in the UK.
Allied Blenders & Distillers (ABD) is aiming to launch its first “premium” whisky brand in India by the end of this year, according to local reports.
Diageo is hoping to confirm early next month that it has secured majority control of India's United Spirits after it has verified the amount of public shares it has acquired from a second open offer.
The Coca-Cola Company has been forced to close one of its Indian bottling plants for allegedly using too much groundwater, but says it is “confident” operations will resume after an appeal.
United Spirits, the Diageo-controlled spirits firm, is delaying the disclosure of its full-year results due to problems with debtors and an outstanding loan.
Cerana Beverages has secured funding from private investors for the launch of a craft beer brand in India.
United Breweries Holdings Ltd (UBHL) has confirmed that its managing director has left the group after less than a year in the role.
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