INDIA – United Spirits, a subsidiary of beverage giant Diageo, has acquired minority stakes in two promising Indian startups, V9 Beverages and Indie Brews and Spirits.
These strategic investments are aimed at tapping into the emerging trends of non-alcoholic drinks and coffee liqueurs in the Indian market.
V9 Beverages, a zero-alcohol spirit distiller founded in 2020, offers a range of non-alcoholic products including Sober Gin, Sober Whiskey, and Sober Rum.
United Spirits has purchased a 15 percent stake in V9 Beverages for Rs 22.9 million (US$273,570). This move aligns with United Spirits’ strategy to explore opportunities in new growth engines, particularly in the non-alcoholic beverage sector which is gaining popularity among health-conscious consumers.
In addition, United Spirits has acquired a 25 percent stake in Indie Brews and Spirits for Rs 50 million (US$597,221). Indie Brews and Spirits, established in 2022 in Chennai, Tamil Nadu, specializes in producing cold-brew coffee liqueur.
The investment in Indie Brews is a strategic move to capitalize on the growing trend of coffee liqueurs in India.
Local reports indicate that over 20 artisanal coffee brands have launched in the country in recent years, highlighting the increasing demand for innovative coffee-based beverages.
“In line with our strategy of exploring opportunities in new growth engines, these strategic minority investments allow us to partner with breakthrough startup entrepreneurs to experiment in the emerging consumer trends of the non-alcohol and coffee liqueur category, respectively,” United Spirits said in a statement.
“We will explore appropriate mechanisms to enhance market reach of these brands and support in other areas of planning and business growth.”
The investments come at a time when United Spirits is navigating a challenging market environment.
In the first quarter ending June 30, 2024, the company reported a revenue of Rs 58.61 billion (US$700.1 million), down from Rs 66.23 billion (US$791M) year-on-year. Profits also declined to Rs 2.99 billion from Rs 3.87 billion in the same period last year.
However, United Spirits recorded a 25.6 percent year-on-year increase in profits to Rs 2.99 billion (US$35.7 million) and an 8.3 percent increase in net sales to Rs 2,352 crore (US$28.1 million), driven by an enhanced footprint and the successful introduction of innovative and renovated product offerings.
In April, United Spirits also acquired a 15 percent stake in Inspired Hospitality, an Indian producer of agave-spirit brand Pistola, for Rs 56 million (US$668,859).
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