United Spirits Acquires Full Ownership of NAO Spirits to Strengthen Craft Portfolio

United Spirits Limited, a subsidiary of global beverage giant Diageo Plc, has announced a major acquisition in the craft spirits space. The company will increase its holding in NAO Spirits & Beverages Private Limited from 30% to 97.07% through a combination of equity share purchase and fresh subscription at an enterprise value of ₹130 crore (approximately $15.2 million). With the completion of the second tranche, Diageo India will hold 100% of NAO, making it a wholly owned subsidiary. This move aligns with Diageo’s broader strategy of investing in innovative alcobev startups and bolstering its premium portfolio with locally rooted, globally appealing products.

Strengthening the Indian Craft Spirits Segment

As part of the acquisition, United Spirits Limited (USL) has agreed to purchase 37,683 equity shares of NAO from existing shareholders for a consideration of approximately ₹53.80 crores, and will also subscribe to 31,820 equity shares and 27,577 Compulsorily Convertible Preference Shares (CCPS) for ₹56 crores. The transaction will be executed in 2 tranches under a Share Purchase Agreement (SPA). The first tranche and fresh subscription are expected to be completed by June 27, 2025, taking USL’s stake to approximately 97.07%. The remaining 3% will be acquired by June 30, 2026, subject to further conditions.

NAO Spirits, incorporated in 2010, is an emerging craft spirits brand that launched ‘Greater Than’ and ‘Hapusa’ gins in 2017 and 2018, respectively. In 2024, the company introduced ‘PIPA’, an aged, spiced rum. With 98% of its revenue derived from India and presence in global markets like the UK, Italy, and Singapore, NAO’s turnover grew to ₹77.73 crores in FY24.

Industry Leadership and Growth Vision

Praveen Someshwar, MD and CEO, Diageo India(USL), said, “Ventures, Diageo India’s investment arm, is dedicated to strengthening our portfolio by investing in disruptive alco-bev startups. This allows us to offer consumers a wider array of products that resonate with evolving preferences. The acquisition of NAO Spirits, a promising portfolio company within our Ventures arm, represents a pivotal step in exploring future growth opportunities in Indian craft spirits. We believe it is the right time to scale up NAO Spirits using Diageo's expertise, unlocking new avenues for distribution and production. We are excited to welcome Anand into the Diageo family as he continues to lead the NAO Spirits business.”

Anand Virmani, Co-Founder & CEO, NAO Spirits & Beverages, added, “We are excited to be a part of the Diageo India (USL) family. As India’s first craft spirits brand, born in a small Goan distillery, this acquisition by Diageo India (USL) is a powerful validation of what we’ve always believed—that India can create great craft spirits. The investment will help us scale further with the support of Diageo India’s seasoned leadership, distribution network and production capabilities combined with our unconventional mindset and ability to stay deeply relatable to the evolving consumer. Our DNA remains unchanged, and we’ll continue to be the pathbreakers. To every beverage innovator out there: it is possible and let’s keep building a stronger community for craft.”

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United Spirits Share Price Performance 

As of 20 June 2025, 10:35 AM, United Spirits share price is trading at ₹1,452.00 per share, a 0.61% decrease. Over the month, the stock has declined by 6.18%.

Conclusion

With this acquisition, Diageo India strengthens its foothold in the Indian premium craft spirits segment, complementing its global offerings with home-grown innovation. As NAO Spirits becomes a fully owned subsidiary, Diageo is positioned to amplify its commitment to local craftsmanship while addressing global demand, aligning with its vision of celebrating life, every day, everywhere.

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