India: Latest beverage news & analysis
Finally, after a near four-month delay United Spirits reported its full-year results today.
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.
Rexam is to boost its can capacity in India with a new GBP50m (US$77m) plant in the south of the country.
Anheuser-Busch InBev has quit its eight year-old joint venture in India with RJ Corp to go it alone in the country.
Hindustan Coca-Cola Beverages is to invest INR1.8tn (US$29m) in a new PET line at a plant in West Bengal.
United Spirits remains in the red in its year to date, but losses have slowed after a healthy rise in Q3 profits, thanks to its premium brands.
Diageo has welcomed a vote by shareholders of its United Spirits subsidiary, which will allow the Indian firm to produce and sell its parent company's brands in the country.
Brown-Forman has replaced the long-serving head of its India business unit.
Heineken has declined to comment on reports that it is looking to raise its stake in India's United Breweries.
Cerana Beverages is aiming to raise an extra US$10m to expand distribution of its Bira 91 beer brand.
The CEO of the Scotch Whisky Association (SWA) has said Diageo's takeover of United Spirits could aid ongoing efforts to end India's import tariffs on spirits.
An Indian state that proposed a complete alcohol ban within ten years is to water down its plans after an industry backlash, according to reports.
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