Diageo has announced the sale and franchising of 32 brands in India, in a deal worth Rs8.2bn (£84m). The brands will be acquired by Inbrew, owned by London-based Indian businessman Ravi Deol, which acquired Molson Coors’ beer business in India in 2021.
The deal – which will be conducted by Diageo’s Indian subsidiary, United Spirits Limited (USL) – follows a strategic review of select Popular brands of the business. The sale covers the contracts, permits, IP rights, associated employees, and a manufacturing facility linked to the brands.
Additionally, USL and Inbrew have signed a five-year franchise arrangement for 11 other brands, which allows Inbrew to convert the arrangement into one with perpetual rights to use and/or acquire the brands.
Diageo noted: “The transaction reflects the continued evolution of the management of the Popular portfolio since 2016, when the company moved to a franchise model in many states, to enable a sharpened focus on ‘Prestige & Above’. This is a significant move to reshape our portfolio in service of our publicly stated mission to deliver sustained double digit profitable top-line growth.”
The deal, which does not include the McDowell’s or Director’s Special brand, is expected to be completed by 30 September 2022.
