Diageo acquires Indian gin producer NAO Spirits for £11m

DIAGEO INDIA has bought a controlling stake in craft gin maker NAO Spirits for £11.1 million as the drinks giant looks to cash in on the growing demand for premium Indian-made spirits.

The acquisition through Diageo's investment division will see NAO Spirits become part of the British multinational's Indian operations. NAO Spirits produces high-end gin brands including Greater Than and Hapusa, which have gained popularity among Indian consumers seeking locally-made premium drinks.

Founded in 2017 by Anand Virmani, NAO Spirits began with the goal of creating world-class gin using Indian ingredients. The company started operations in a small distillery in Goa with ambitious plans to put Indian craft spirits on the global map.

Greater Than holds the distinction of being India's first craft gin, made using nine botanical ingredients sourced from India and other countries. Meanwhile, Hapusa stands out as one of the few craft gins worldwide that uses foraged Himalayan juniper berries along with other unique regional botanicals.

The company expanded beyond gin last year by launching PIPA, an aged spiced rum made from jaggery spirit and matured in specially imported wooden casks for twelve months. This move marked NAO Spirits' entry into India's rum market and international markets.

Anand Virmani

Praveen Someshwar, managing director and chief executive of Diageo India, said the purchase represents an important move in exploring future growth opportunities in Indian craft spirits. "We believe it is the right time to scale up NAO Spirits using Diageo's expertise, unlocking new avenues for distribution and production," he said.

The deal comes as India experiences a boom in craft gin producers, with NAO Spirits establishing itself as a market leader in the category. Indian consumers are increasingly willing to try new products and seek authentic, locally-produced brands for casual drinking occasions.

Diageo India believes NAO Spirits' products are perfectly positioned to meet these changing consumer preferences. The acquisition will complement Diageo's existing premium gin portfolio, which includes international brands like Tanqueray.

Under the new ownership structure, Virmani will remain as chief executive and continue running the business day-to-day. He expressed enthusiasm about joining the Diageo family and said the investment validates the potential for Indian craft spirits.

"As India's first craft spirits brand, born in a small Goan distillery, this acquisition by Diageo India is a powerful validation of what we've always believed - that India can create great craft spirits," Virmani said. He added that the investment will help the company grow further with support from Diageo India's experienced leadership team, distribution networks, and production facilities, combined with NAO's innovative approach and consumer understanding.

The purchase reflects Diageo's broader strategy to strengthen its presence in India's rapidly growing spirits market. Last year, the company launched its Godawan Artisanal Indian Single Malt whisky in the UK market, demonstrating its commitment to promoting Indian-made premium spirits internationally.