Varun Beverages' Subsidiary Kiva Spirits in Talks to Acquire Alcobrew Distilleries
Kiva Spirits and Company Ltd, a newly established subsidiary of Varun Beverages, is in advanced discussions to acquire Alcobrew Distilleries India Ltd for an estimated enterprise value of up to ₹2,500 crore ($259.8 million).
Kiva Spirits and Company Ltd, a newly incorporated subsidiary of Varun Beverages, is reportedly in advanced discussions to acquire Alcobrew Distilleries India Ltd. Sources familiar with the matter state that the proposed transaction could value Alcobrew at an enterprise value between ₹2,000 crore ($207.8 million) and ₹2,500 crore ($259.8 million). However, the final terms and transaction structure have not been finalized.
Kiva Spirits was established in August as a wholly owned subsidiary of Varun Beverages, specifically focusing on ready-to-drink (RTD) alcoholic beverages and related products. To guide the new enterprise, the company appointed former Diageo executive Prathmesh Mishra as chief executive officer and managing director. A potential deal with Alcobrew would grant Kiva Spirits an established portfolio of spirits brands, production assets, and distribution infrastructure.
Alcobrew began operations in 2002 and currently operates across approximately 15 Indian states and Union Territories. Its manufacturing network features a distillation and bottling plant in Gamber Valley, Himachal Pradesh, established in 2022, as well as production facilities in Dera Bassi, Punjab. Beyond domestic distribution, the company exports to around 20 countries across Africa, Asia, and West Asia. Alcobrew’s brand portfolio includes Gamber Valley single malt, Golfer’s Shot, White & Blue, One More vodka, Victorio brandy, and Bhrum rum. It also holds the Indian licensing rights for Italy's Gruppo Campari-owned Old Smuggler Blended Scotch whisky and rum.
Financially, Alcobrew generated revenue from operations of approximately ₹1,615 crore in FY2025, compared to ₹1,640 crore in FY2024. Profit after tax rose to ₹69.45 crore from ₹62.55 crore, while EBITDA reached approximately ₹119.7 crore. At the reported valuation range, the potential transaction would value Alcobrew at roughly 16.7 to 20.9 times its FY2025 EBITDA.
The acquisition talks come as Alcobrew prepares for an initial public offering (IPO), having received regulatory clearance in January for its draft prospectus. The draft IPO included a fresh issue of up to ₹258.25 crore and an offer for sale of up to 18 million shares by promoter Romesh Pandeita. It remains unclear how the negotiations with Kiva Spirits will impact the planned public listing.
Key facts
- Kiva Spirits is in advanced talks to acquire Alcobrew Distilleries India Ltd for ₹2,000 crore to ₹2,500 crore ($207.8M–$259.8M).
- Kiva Spirits was formed in August as a wholly owned subsidiary of Varun Beverages, focusing on ready-to-drink (RTD) alcoholic beverages.
- Alcobrew generated ₹1,615 crore in operational revenue and ₹119.7 crore in EBITDA for FY2025.
- The acquisition would value Alcobrew at 16.7 to 20.9 times its FY2025 EBITDA.
- Alcobrew holds Indian licensing rights for Gruppo Campari's Old Smuggler brand and exports to nearly 20 countries.
Why it matters
The potential acquisition highlights Varun Beverages' strategic entry into the Indian alcoholic beverage and RTD market. Acquiring Alcobrew would instantly provide Kiva Spirits with an established spirits portfolio, manufacturing facilities in Himachal Pradesh and Punjab, and distribution across 15 Indian states and 20 export markets.
- Food Business Africa — 2026-10-01: “Varun Beverages’ Kiva Spirits in talks to acquire Alcobrew”
This article was prepared by WBI.org from the sources listed above with the assistance of AI and reviewed by a WBI editor before publication. Information is attributed to its original sources.