Kishore Chhabria-controlled Allied Blenders & Distillers Pvt Ltd (ABD), one of the country's top spirits company, has bought 50 per cent ownership rights in two brands—Mansion House and Savoy Club from Herman Jansen Beverages Nederland BV, the company said. It did not disclose the deal value.
With this, ABD plans to further strengthen its market share in the brandy segment, especially in the four southern states in India which account for almost all of the brandy sales in India.
ABD and Herman Jansen have also signed a partnership arrangement in which ABD will produce and market Mansion House in India.
At present, ABD has a small presence in the brandy category with its premium brand Kyron and semi-premium brandy Lord & Master. The deal will boost its presence in the segment.
Brandy is the second-largest category contributing to 25 per cent of the Indian made foreign liquor (IMFL) industry and has been one of the fastest growing categories over the last few years.
"Our existing strong distribution network and a renowned brand like Mansion House will yield significant results for this partnership. This marks another important milestone in ABD’s strategy for sustainable growth," said Deepak Roy, executive vice-chairman and CEO, ABD.
One of the key spirits companies in the country, ABD’s flagship brand, Officer’s Choice, is among the largest selling whisky brands in the world. It also has grain vodka under Class 21, Jolly Roger rum, Officer’s Choice Blue and Lord & Master brandy among other brands.
Last year in May, ABD had acquired West Bengal-based Wales Distilleries for an undisclosed amount.
In FY14, ABD has achieved sales of 25 million cases, up 24 per cent growth over the previous fiscal year. The company has been recording a CAGR of 20 per cent over the past five years.
“ABD is a very strong player in India. It has a strong production and distribution network which will provide the required infrastructure to make the brand stronger in India," said Henricus. Th. F. Jansen (Dick), director of Herman Jansen, a global producer and distributor of spirits.
The deal comes even as Herman Jansen is locked in litigation over the use of the Mansion House brand in India. Tilaknagar Industries Ltd, in which ABD was in talks to buy stake but the deal reportedly got struck on valuations, makes Mansion House brandy in India.
(Edited by Joby Puthuparampil Johnson)