~ The largest Indian-owned spirits company shifts gear to better margin segments ~
Allied Blenders and Distillers Ltd (ABD) has earned the rare distinction of being the only Spirits company in India with two millionaire brands launched in the past five years (CY18 – CY22). Both Sterling Reserve Whisky and ICONiQ Whisky operate in the Prestige and Above segments, and they form the core for profitable growth.
The alcohol beverage industry terms a ‘millionaire brand’ as one that sells more than 1 million (10 lakh) cases of 9-litres each in a year.
Sterling Reserve joined the ‘millionaire brand’ club in the very first full year of its launch (CY2018). It went on to earn the tag of the ‘world’s fastest-growing spirits brand’ in terms of cases sold in 2019. The brand breached the 5 million cases milestone in CY2022*.
(Source: *Drinks International Millionaire’s Club Report 2020; ** Drinks International Millionaire’s Club Report 2023)
ABD recently confirmed that ICONiQ Whisky, which launched September 2022 onwards, crossed the 1 million cases milestone in September 2023.
These successes, show ABD’s ability to understand consumers, and deliver efficiently and effectively. It sets pace for ABD to transit to a higher value portfolio and build further for super-premium and luxury segments. ABD’s flagship brand, Officer’s Choice continued its run in CY2022 to be amongst the 3 top-selling whisky brands globally. The company now has 4 millionaire brands in its portfolio.
Commenting on the successes behind Sterling Reserve and ICONiQ Whisky, Bikram Basu, Chief Strategy & Marketing Officer said, ‘At ABD, we believe we have the ideas, skills, mindset, and experience to be the best. We’ve let our brands do the talking in the market with the consumer. Our pan-India distribution strength and manufacturing footprint allows us to pivot quickly as we see success. We are grateful to all our business partners for their unstinted and consistent support. The performance of Sterling Reserve and ICONiQ Whiskies will help us deliver on a higher margin business in Prestige and Above segments.’
Disclaimer: “Allied Blenders and Distillers Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offering of its equity shares and has filed a draft red herring prospectus dated June 27, 2022 (“DRHP”) with the Securities and Exchange Board of India (“SEBI”). The DRHP is available on the website of SEBI at www.sebi.gov.in, and the website of the Book Running Lead Managers, ICICI Securities Limited at www.icicisecurities.com Axis Capital Limited at www.axiscapital.co.in, Equirus Capital Private Limited at https://www.equirus.com/, JM Financial Limited at www.jmfl.com and Kotak Mahindra Capital Company Limited at http://www.investmentbank.kotak.com/ and the websites of BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia.com, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details refer to the Red Herring Prospectus, including the section titled “Risk Factors” of the Red Herring Prospectus when available. Potential investors should not rely on the DRHP for any investment decision.”
The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933 (the “U.S. Securities Act”) or any state securities laws in the United States, and unless so registered, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in ‘offshore transactions’ in reliance on Regulation S and the applicable laws of each jurisdictions where such offers and sales are made. There will be no public offering of the Equity Shares in the United States.
