Craft spirits pour new energy into India's alcobev giants

India’s young, quality-conscious drinkers are driving a surge in craft gin and vodka, prompting major alcohol beverage (alcobev) companies to snap up boutique spirits brands. These acquisitions provide established players with a low-cost entry into fast-growing niches, allowing them to capture early momentum and diversify beyond traditional liquor categories.

- ANEEKA CHATTERJEE

Bengaluru-headquartered United Spirits, owned by Diageo, acquired craft spirits maker Nao Spirits for ₹130 crore in two tranches, completed in June 2025. Nao Spirits’ portfolio includes Greater Than London Dry Gin and Hapusa Himalayan Dry Gin.

Tilaknagar Industries also deepened its strategic investment in Spaceman Spirits Lab with about ¥33 crore in three phases starting in 2023. The move strengthens its position in fast-growing craft gin and vodka brands, including Samsara and Amara.

Allied Blenders & Distillers acquired Fullarton Distilleries’ premium brands for%40 crore in January 2025, expanding, its premium spirits portfolio. The deal brought Pumori Gin, Woodburns Whisky, and Segredo Aldeia under its umbrella.

Diageo said that India’s maturing consumers increasingly seek premium, authentic experiences, making the craft spirits segment a strategic opportunity. “Our acquisition of Nao Spirits strengthens our participation in the fast-growing craft segment. Authenticity is central to any craft partnership,” said a spokesperson for Diageo.