As of now, the company’s higher priced products, called “Prestige & Above” segment, accounted for 72.5 per cent of net sales in the financial year ending March this year. The sales of this segment grew by 23.6 per cent — mainly due to lifting of lockdowns across India.
Analysts said popular brands, including Black Stallion and Haywards, now sold to Inbrew, are priced at Rs 400-700 and caters to the lower end of the market. “Since USL's acquisition from Vijay Mallya, United Spirits was first embroiled with several legacy issues with Indian government authorities and Mallya, The company initiated a brand review a year ago and decided to sell these brands now,” said an analyst.
The company said in FY22, the premium and luxury portfolio grew faster than the prestige portfolio led by the company’s premiumisation drive. Within the Scotch portfolio, Johnnie Walker, Black & White, Black Dog and J&B delivered strong double-digit growth.
The transaction does not include USL's McDowell’s or Director’s Special brands, which will be retained by United Spirits.
The company reported consolidated revenues of Rs 31,061 crore for the 2022 fiscal year and profits of Rs 828 crore (see chart). The company has lost 13.3 per cent of its value in the last one year with its market valuation at Rs 56,579 crore as on Friday.
The company’s popular brands, which were sold to Inbrew Beverages, accounted for 26.2 per cent of its net sales during the financial year.
Diageo had acquired United Spirits from Vijay Mallya in 2012 for $2.1 billion. With the acquisition, Diageo also acquired Bangalore Indian Premier League cricket team.
 "Image via Shutterstock")
