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.
The company added that Nao Spirits’ founders will continue leading the brand, while Diageo provides distribution, quality, and brand-building support, helping the craft gin maker reach more consumers without losing its distinct identity.
“These investments help us identify emerging motivations early, experiment in new spaces like craft spirits, and build the portfolio of the future. With Nao Spirits, we are deepening our commitment to nurturing India’s craft ecosystem and shaping the next wave of industry growth,” the spokesperson said.
Tilaknagar Industries noted that India’s alcobev market is entering a high-growth phase driven by young, quality-focused consumers, explaining the rise in craft-spirits acquisitions. “Investing in craft gin and vodka allows established companies to tap into this energy, blending scale and distribution muscle with the innovation, experimentation, and cultural relevance that craft brands bring,” said Amit Dahanukar, its chairman and managing director.
Dahanukar added, “These partnerships open doors to fast-growing categories like craft gin and vodka, letting us diversify beyond our traditional strength in brandy while staying connected to evolving consumer tastes.”
Tilaknagar indicated it may pursue selective partnerships or acquisitions as premium craft spirits gain momentum. “We remain open to partnerships that share our values of authenticity and quality. Our focus is on thoughtful growth, not just volume,” Dahanukar said.
He noted that the company aims to strengthen its leadership in brandy while accelerating premiumisation through its House of TI vertical, led by Monarch Legacy Edition and an upcoming Bartisans collaboration. Strategic moves such as acquiring Imperial Blue also support meaningful whisky expansion, alongside rising national reach and growing brandy exports to Africa and the United Arab Emirates.
According to Grand View Research, India’s craft spirits market generated $398 million in revenue in 2023 and is projected to reach $3,142.6 million by 2030.
The Brewers Association of India (BAI) said acquiring craft gin and vodka brands allows firms to make small-ticket future bets, minimise the risk of failed launches, and remain focused on core liquor segments.
“Buying brands in relatively smaller alcohol categories keeps the investment size modest. By acquiring rather than developing products in-house, companies can focus on their core categories while mitigating the risk of unsuccessful launches. Most mainstream alcohol companies lack the startup mindset or creative processes to build niche brands from scratch,” said Vinod Giri, director general, BAI.
Anant S Iyer, director general of the Confederation of Indian Alcoholic Beverage Companies, said premiumisation and experiential drinking are driving strong growth in craft vodkas and gins, with boutique distillers gaining traction and big alcohol players accelerating acquisitions.
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