- NAO Spirits, launched in 2017 by Anand Virmani, is an emerging Indian craft spirits company known for its unique gin brands.
- Diageo India believes that NAO Spirits brands are well positioned to cater to the evolving trends in the market.
- Virmani, CEO of Nao Spirits & Beverages, will continue to lead the business under Diageo India's ownership.
Diageo India, a subsidiary of Diageo Plc, has announced that it will take a majority controlling stake in NAO Spirits, maker of premium Indian craft gin brands like Greater Than and Hapusa, for an enterprise value of Rs. 1.3 billion (£11.1 million).
The deal by Ventures, Diageo India’s investment arm, will see NAO Spirits becoming a subsidiary of the company.
Launched in 2017 by Anand Virmani, with the dream of bringing an Indian botanical infused gin to the world, Nao Spirits is an emerging Indian craft spirits company, with London Dry gin Greater Than and super-premium Himalayan gin Hapusa.
Greater Than, India’s first craft gin, is made from 9 botanicals from India and around the world and Hapusa is one of the few craft gins in the world made with foraged Himalayan Juniper and unique botanicals.
Last year, the company entered the rum market in India and abroad with the launch of an aged, spiced rum, PIPA, crafted from jaggery spirit which is then matured in specially imported casks for a year.
“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,” Praveen Someshwar, managing director and chief executive of Diageo India, said. “We believe it is the right time to scale up NAO Spirits using Diageo's expertise, unlocking new avenues for distribution and production.”
Over the last few years, India has witnessed the emergence of multiple craft gin players, and NAO Spirits has emerged as a leader in the category. As consumers shift towards experimentation, repertoire and casual drinking occasions, demand for local, yet authentic craft-oriented brands are on the rise.
Diageo India said NAO Spirits brands are well placed to cater to these evolving trends, along with leading international gin brands such as Tanqueray in its portfolio.
Anand Virmani, chief executive of Nao Spirits & Beverages, will continue to lead the business.
“We are excited to be a part of the Diageo India (USL) family,” he 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.”
Last year, Diageo India has launched its Godawan Artisanal Indian Single Malt in the UK.