Race heats up to acquire Imperial Blue

There is a big buzz in the industry circle around the acquisition of Imperial Blue Whisky. Among the current contenders, Tilaknagar Industries has reportedly emerged as the frontrunner to acquire the brand from French liquor major Pernod Ricard in a potential deal valued at up to $600 million. If finalised, it would be the largest acquisition in India’s alcoholic beverage sector since Diageo’s $1.9 billion acquisition of United Spirits in 2013.

Imperial Blue, launched in India in 1997 and acquired by Pernod Ricard in 2001, is currently the world’s eighth best-selling whisky, with 22.8 million nine-litre cases sold in 2023. This marks a decline from its 2019 peak of 26.3 million cases.

Tilaknagar Industries has been asked to submit a binding bid by June 23. The acquisition will be funded through a mix of internal accruals, bank loans, and private equity.

Inbrew Beverages, founded by London-based entrepreneur Ravi Deol, is also in the fray but is reportedly behind Tilaknagar in the bidding process. Japanese firm Suntory Holdings had earlier considered a bid but opted out.

Previously, Tilaknagar acquired Round The Cocktails, Spaceman Spirits, and Incredible Spirits to expand its presence in the Indian-made foreign liquor (IMFL) segment.