Allied Domecq buys Clan Morgan’s 26% stake in Indian JV for Rs 83 cr

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Mumbai, Jan 23: Allied Domecq, the world’s second largest spirits and wine company, has bought out the 26% stake held by its Indian partner Clan Morgan in the joint venture (JV) — Allied Domecq Spirits & Wine India — for a consideration of Rs 83 crore. With this acquisition, Allied Domecq Spirit & Wine India has become a 100% subsidiary of the parent company — Allied Domecq Plc.

The 74:26 JV between Allied Domecq Spirits & Wine India and Clan Morgan was formed in 1994. Confirming the development on the Indian partner selling out, Allied Domecq India managing director Harish Moolchandani said, “Following the parent company’s decision to make the Indian arm a 100% subsidiary, we have bought over the remaining 26% equity from Clan Morgan for a consideration of Rs 83 crore.”

Following this acquisition, the company’s marketing exercise will now be focused mainly on two brands — Ballantine scotch whisky and Sauza tequila. “The company has already rolled out a range of promotional activities for the two brands in India. These brands will be sold through the institutional segment in the first phase, which will then be followed by retail,” said Allied Domecq India general manager (marketing) Neeraj Kumar. Currently, Ballantine is available at all major retail establishments in metros in India at Rs 5,500 per bottle while Sauza is priced between Rs 1,700-1,800. Ballantine is the world’s third largest scotch whisky brand with nearly six million cases sold annually. Though the Ballantine portfolio consists of eight different varieties In India, the focus will largely be on the brand — Ballantine’s 17 Years Old.