According to reports from Mint, Varun Beverages' subsidiary Kiva Spirits and Company Ltd, incorporated on August 29, is in advanced discussions to acquire Alcobrew Distilleries India Ltd for an enterprise value of ₹2,000-2,500 crore. The proposed transaction would provide Kiva with established liquor brands, manufacturing facilities, and a distribution network as Varun Beverages seeks to build its presence in the alcoholic beverages market. At least two people familiar with the plan confirmed to Mint that the talks are at an advanced stage, with one source stating that "the two companies are currently trying to arrive at a price between ₹2,000 crore-2,500 crore" and noting that "we are aware that the talks are in advanced stages and could conclude soon."
As reported by Mint, at an enterprise value of ₹2,000-2,500 crore, the valuation would be roughly 16.7-20.9 times Alcobrew's FY25 Ebitda of ₹119.7 crore, based on financial figures available in its IPO documents filed with the market regulator in September 2025. According to expert Poonam Chandel, former managing director of Neuworld Spirits, the transaction would allow Alcobrew's promoters to crystallize value while providing Kiva with established manufacturing capabilities and market presence. The acquisition may provide quick scale to Varun Beverages as it enters the alcoholic beverages category outside its traditional business of carbonated soft drinks, juices, and packaged water. Chandel noted that "for Alcobrew's promoters, it offers an opportunity to crystallize the value they have created and make a meaningful exit, albeit a bit early," while emphasizing that "acquiring an established player is certainly a faster route than building from scratch."
According to Mint reports, Alcobrew's portfolio includes whisky brands such as White & Blue, Golfer's Shot, Golfer's Shot 18 Hole, White Hills, and Alcobrew Single Oak. The company also manufactures One More vodka, Victorio brandy, Lion Daddy and Bhrum rums, and holds the India license for Old Smuggler Blended Scotch whisky and Old Smuggler rum, owned by Italy's Gruppo Campari. As per the company's IPO documents, Alcobrew's portfolio currently comprises 13 products, with prices ranging from about ₹440 for Old Smuggler rum to ₹2,000 for its Golden Circle whisky. Alcobrew began operations in 2002 and has a presence in about 15 states and Union Territories. In 2022, the company established a distillation and bottling unit in Gamber Valley of Solan district in Himachal Pradesh, and has built an export network of about 20 countries including markets in Africa, Asia and West Asia.
As reported by Mint, Alcobrew reported revenue from operations of ₹1,615 crore in FY25, down from ₹1,640 crore in FY24, while profit after tax rose to ₹69.45 crore from ₹62.55 crore. The Indian whisky market was valued at ₹1.6 trillion in FY24 and was projected to reach ₹2.83 trillion by FY30, driven by rising premiumization, higher per-case realizations, and deeper penetration of prestige and luxury segments across tier I and II urban clusters. It was not immediately clear whether the proposed transaction with Kiva would affect Alcobrew's planned initial public offering, which comprises a fresh issue of shares of up to ₹258.25 crore and an offer for sale of up to 18 million shares by promoter Romesh Pandita. Alcobrew stated that "it is the company's stated policy not to comment on or respond to media speculation," while noting that if any developments arise requiring disclosure, they will make necessary announcements.
According to Mint reports, Kiva appointed Prathmesh Mishra as its chief executive officer and managing director, who most recently served as managing director for Korea and Japan at spirits major Diageo and previously held senior roles at Diageo India and Pernod Ricard India. Expert Poonam Chandel noted that acquiring an established player is a faster route than building from scratch, as Alcobrew brings manufacturing, licenses, brands, distribution and market understanding, while VBL brings capital and execution strength. The acquisition would mark Varun Beverages' entry into the alcoholic beverages category, expanding beyond its traditional non-alcoholic beverage portfolio. Chandel emphasized that "for Kiva, the larger question of diversification into alcobev will ultimately be judged by the returns it generates, but once the decision to enter the sector has been taken, acquiring an established player is certainly a faster route than building from scratch."
