Indian spirits group Allied Blenders and Distillers has decided not to proceed with acquiring a majority stake in Good Barrel Distillery.
In January, Allied Blenders and Distillers announced plans to acquire up to a 51% equity stake in Good Barrel, contingent on business milestones, with an option to purchase the entire paid-up share capital.
However, the proposed acquisition will no longer happen.
In a stock exchange filing, Allied Blenders and Distillers said as part of the due diligence process to buy the stake in Good Barrel “certain commercial considerations emerged, which required renegotiation of specific terms”.
It added: “Despite best efforts, the parties could not reach mutually acceptable terms and hence the board has decided not to proceed with the proposed acquisition.”
Good Barrel, established in 2021, is known for manufacturing alcoholic and non-alcoholic beverages, with Rock Paper Rum as its flagship brand.
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By GlobalDataAllied Blenders and Distillers said the withdrawal of the transaction will not have a material or financial impact, as the deal was still in the preliminary stages.
The company added it “will continue to explore both organic and inorganic growth opportunities”.
Two months ago, Allied Blenders and Distillers acquired UTO Asia, a subsidiary of Dutch spirits group Herman Jansen, for €1.2m ($1.4m).
The acquisition aimed to offer Allied Blenders and Distillers “worldwide rights” and “title interest” in brandy and whisky brands Mansion House and Savoy Club, excluding ten markets.
However, the Bombay High Court has prohibited the company from selling these brands in India due to an ongoing commercial suit.
The legal suit dates back to 2009, involving Herman Jansen and Indian distiller Tilaknagar Industries over brand rights.
Herman Jansen sought a temporary injunction against Tilaknagar to prevent the use of the brands ‘Mansion House’ and ‘Savoy Club’.
Allied Blenders and Distillers listed on the Indian stock exchanges last year.
Financially, Allied Blenders and Distillers reported its “highest ever” profit after tax (PAT) in its 2025 fiscal year, which ended on 31 March.
Total income rose to Rs80.94bn ($929m), a 5.5% increase from FY24.
PAT reached Rs1.95bn compared with Rs20m in the previous year.
Commenting on the results released on 15 May, Alok Gupta, managing director of Allied Blenders and Distillers, said: “We are pleased to report third consecutive quarter of robust performance following our IPO.
“The consistent positive outcome of our four-point transformation agenda – premiumisation, supply chain security, margin enhancement, and enhance governance framework – is demonstrated in these results, validating both our strategic direction and its effective execution.”
