Suntory looks for a high with Imperial Blue buy

Time of India

24-06-2025

Japanese alcobev giant Suntory has revived plans to acquire the
Imperial Blue whiskey
brand in India from France's
Pernod Ricard
, said people in the know, sensing rival
Tilaknagar Industries
' continued struggle to raise funds.
Imperial Blue is the third-largest whiskey brand in the country though sales have lagged in recent years as many Indian consumers moved to upgrade to premium brands over mass or prestige offerings.
The proposed sale is part of a broader global restructuring exercise initiated by Pernod Ricard—the owner of best-selling brands like Absolut vodka and Jameson whiskey—since last year. This includes a portfolio reshuffle, job cuts, and splitting its global brands into two blocks.
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Suntory, the world's third-largest spirits maker after Diageo and Pernod Ricard, had last year pursued the acquisition but eventually dropped its plans due to the high valuation of $1 billion for Imperial Blue.
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The sale exercise, managed by Goldman Sachs, has seen a lukewarm response so far with two contenders – entrepreneur Ravi Deol-led Inbrew Beverages, and Tilaknagar Industries – making offers that were far below the ask. After a hiatus, the divestment process is believed to have resumed in recent weeks. Binding offers are due in the next 10 days, said the people cited above.
Pernod has cut its demand for Imperial Blue and is believed to be currently seeking $600-$650 million for the brand. That too has faced a lukewarm response.
'This is a carve-out with no plants, organisation or distribution. To expect public market valuations is futile,' said an industry player who evaluated the prospects but opted out.
Suntory Global Spirits said as a matter of policy, it does not comment on speculation.
"Pernod Ricard regularly reviews strategic options for its development, including its brand / business portfolio. As a matter of policy, the company does not comment on market rumours or speculations," a Pernod Ricard spokeswoman said.
Imperial Blue operates in the 78-million-case per year deluxe whiskey category, a bridge between the mass and premium segments. It sold 22.2 million cases in 2024, a meagre 0.5% from the year before. A blend of Indian grain spirits and imported Scotch malts, the brand was launched in India in 1997 by Seagram, which was acquired by Pernod in 2002.
With a market share of 8.6%, Imperial Blue trails McDowell's and Royal Stag in 2024, as per latest IWSR report. For Pernod, it accounts for a third of its total whiskey sales in the country even though sales have been declining steadily over the past few years, falling 4% between 2019 and 2024.
'Tilaknagar's market cap is almost at par with what Pernod expects from the Imperial Blue sale,' said an industry official. ET reported in its June 19 edition that the maker of Mansion House and Courrier Napoleon brandy brands is looking to raise up to $500 million to fund the potential acquisition and had mandated
Kotak Mahindra Bank
and Avendus to raise rupee-based financing in the form of non-convertible debentures (NCDs).
'The challenge for Tilaknagar has been its long-lasting legal tussle with
Allied Blenders
over the trademark use of Mansion House. Raising financing therefore, may not be that simple,' the official said.
With annual sales of 260 million cases in 2024, India is the largest whiskey market in the world by volume.
Suntory dominates the Japanese whisky segment in India, with about 95% share, through brands such as The Yamazaki and Hibiki besides owning Teacher's, the fifth-largest scotch brand in India. The company behind Jim Beam also controls 44% of the American whiskey category.
Suntory's unlisted Indian arm Beam Global, maker of Teacher's, Hibiki and Roku gin, saw 12% sales growth to Rs 1,304 crore in FY24. Over the past few years, the company has launched India-made whisky Oaksmith, Japanese whiskies The Yamazaki and Hibiki, Japanese gin Roku, as well as Toki whisky.
Parent Suntory Holdings aims to touch $1 billion in annual revenue in India by 2030. It operates its own manufacturing plant in Rajasthan and four third-party bottling units in Goa, Maharashtra, Madhya Pradesh and Telangana.
Last June, Suntory Holdings set up another local unit, Suntory India to explore potential expansion opportunities for the group in the country, mainly for its soft-drinks and wellness brands.
Last year, Pernod Ricard had also agreed to sell the bulk of its international wine portfolio to the owner of Australia's Accolade Wines, allowing it to shed the bulk of its worst-performing division to focus on premium spirits and champagne. The French drinks maker offloaded popular supermarket brands such as Jacob's Creek, Campo Viejo and St Hugo to Australian Wine Holdco Ltd, a consortium of investors, and several other vineyards for an undisclosed sum. In June 2025, it announced dividing its portfolio into two units. The first will include its whiskey, champagne and cognac; the second will include other spirits and aperitifs.
ET Insight: With annual sales of 260 million cases in 2024, India is the largest whiskey market in the world by volume