Diageo takes control of Nao Spirits for $15.2m
The Indian arm of Diageo, United Spirits, has purchased a majority controlling stake in Goa-based gin producer Nao Spirits for INR 130 crores (US$15.2 million).
The move comes more than three years after Diageo acquired a 22.5% stake in Nao Spirits, producer of gins Greater Than and Hapusa, for INR 31.5 crores (US$4.1m).
The company has now increased its stake in Nao Spirits from 30% to approximately 97.07%. Diageo is set to take 100% ownership in the brand with a final tranche pending.
Nao Spirits has now become a subsidiary of Diageo India, also known as United Spirits Limited (USL).
Diageo noted that Nao Spirits has become a leader in the craft gin category in India.
Praveen Someshwar, managing director and CEO, Diageo India, 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.”
Nao Spirits was launched in 2017 by Anand Virmani. The firm’s Greater Than Gin is made using nine botanicals from India and around the world, while its Hapusa Gin contains botanicals including foraged Himalayan juniper, fresh turmeric, gondhoraj peel and raw mango.
Last year, the company expanded beyond gin with the launch of aged spiced rum Pipa.
Virmani, who will continue to run Nao Spirits & Beverages as CEO, said: “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.”
Last year, Diageo India purchased minority stakes in the maker of Indian agave spirit Maya Pistola, and alcohol-free producer V9 Beverages and Indie Brews & Spirits, which launched coffee liqueur brand Quaffine in 2022.
The chief innovation officer of Diageo India believes rum will follow in gin’s footsteps as the next spirit to boom.
Diageo’s gin portfolio includes Tanqueray, Gordon’s and Chase, as well as Ryan Reynolds-backed Aviation American Gin.
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