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.
Tilaknagar Industries has posted a sharp rise in profits but warned of “challenging” conditions ahead as volumes and sales fell.
United Breweries Holdings has reported a drop in first-quarter sales from its alcohol operations, but profits rose in the period.
The Coca-Cola Company has confirmed it has held “exploratory” talks with officials over expanding its operations in the Indian state of Telangana.
Britvic has begun the rollout of its Fruit Shoot children's soft drinks brand in India.
Indian cigarette maker ITC is to enter the beverage market with a range of fruit juices and dairy drinks.
Tata Global Beverages has seen a rise in first-quarter sales, but profits were dragged down by investments in new ventures.
Allied Blenders & Distillers and Tilaknagar Industries have reopened talks over a potential merger, just-drinks has learnt.
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.
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