Allied Blenders & Distillers drops Good Barrel acquisition amid unresolved commercial terms 

INDIA – Allied Blenders and Distillers (ABD) has announced that it will not move forward with its planned acquisition of a majority stake in Good Barrel Distillery. 

In January, the company revealed its intention to acquire up to 51% equity in Good Barrel, with the possibility of eventually purchasing the entire shareholding. The deal, however, has now been called off. 

In a stock exchange filing, ABD explained that the decision followed issues identified during the due diligence process. The company stated that “certain commercial considerations emerged, which required renegotiation of specific terms.”  

Despite attempts to resolve the matter, “the parties could not reach mutually acceptable terms and hence the board has decided not to proceed with the proposed acquisition,” it added. 

Good Barrel, founded in 2021, produces both alcoholic and non-alcoholic beverages and is best known for its flagship brand, Rock Paper Rum.  

ABD confirmed that the transaction was still at an early stage and its withdrawal will not have a material impact on financial performance. The company also emphasized that it remains committed to exploring both organic and inorganic avenues for growth. 

The decision comes just two months after ABD completed the acquisition of UTO Asia, a subsidiary of Dutch spirits group Herman Jansen, for €1.2m (US$1.4m). With the deal, ABD acquired worldwide rights and title interest in brandy and whisky brands Mansion House and Savoy Club, excluding ten international markets.  

However, the Bombay High Court has since barred ABD from selling these brands in India due to an ongoing legal dispute. 

The dispute stems from a 2009 commercial suit between Herman Jansen and Tilaknagar Industries over the ownership of Mansion House and Savoy Club. Herman Jansen sought a temporary injunction preventing Tilaknagar from using the brand names, a case that continues to impact sales in India. 

Despite such challenges, ABD has reported strong financial performance. In its fiscal year ending 31 March 2025, the company posted its “highest ever” profit after tax (PAT). Total income rose 5.5% year-on-year to Rs80.94bn (UABD$929m), while PAT surged to Rs1.95bn, up from Rs 20m in the prior year. 

Managing director Alok Gupta attributed the results to ABD’s four-point transformation agenda, highlighting premiumisation, supply chain security, margin enhancement, and governance improvements as key drivers of growth. 

ABD, which listed on Indian stock exchanges last year, continues to strengthen its position in the country’s competitive alcoholic beverages market. 

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