2 days ago
Allied Blenders and Distillers walks away from Good Barrel Distillery deal
Allied Blenders and Distillers (ABD), an Indian alcohol beverage company, has decided not to proceed with acquiring a majority stake in Good Barrel Distillery.
In January, ABD announced plans to acquire up to a 51% equity stake in Good Barrel, contingent on business milestones, with an option to purchase the entire paid-up share capital.
However, this proposed acquisition will no longer proceed.
In a stock exchange filing on 14 August, ABD said as part of the due diligence process, 'certain commercial considerations emerged, which required renegotiation of specific terms' and 'despite best efforts, the parties could not reach mutually acceptable terms and hence the board has decided not to proceed with the proposed acquisition'.
Good Barrel, established in October 2021, is known for manufacturing alcoholic and non-alcoholic beverages, with Rock Paper Rum as its flagship brand.
ABD said that the withdrawal of the transaction will not have a material or financial impact, as the deal was still in the preliminary stages.
The company 'will continue to explore both organic and inorganic growth opportunities'.
Two months ago, ABD acquired UTO Asia, a subsidiary of Dutch spirits group Herman Jansen, for €1.2m ($1.4m).
The acquisition aimed to offer ABD 'worldwide rights' and 'title interest' in brandy and whisky brands Mansion House and Savoy Club, excluding ten markets.
However, the Bombay High Court has prohibited ABD from selling these brands in India due to an ongoing commercial suit.
The legal suit dates back to 2009, involving Herman Jansen and Indian distiller Tilaknagar Industries over brand rights.
Herman Jansen sought a temporary injunction against Tilaknagar to prevent the use of the brands 'Mansion House' and 'Savoy Club'.
ABD listed on the Indian stock exchanges last year.
Financially, ABD reported its 'highest ever' profit after tax (PAT) in fiscal year 2025 (FY25) that ended 31 March 2025.
In FY25, its total income rose to Rs80.94bn ($929m), a 5.5% increase from FY24.
PAT reached Rs1.95bn compared with Rs20m in the previous year.
Commenting on the results released on 15 May, Alok Gupta, managing director of ABD, said: 'We are pleased to report third consecutive quarter of robust performance following our IPO.
"The consistent positive outcome of our four-point transformation agenda – premiumisation, supply chain security, margin enhancement, and enhance governance framework – is demonstrated in these results, validating both our strategic direction and its effective execution.'
"Allied Blenders and Distillers walks away from Good Barrel Distillery deal " was originally created and published by Just Drinks, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
