India: Suntory revives bid to buy India’s Imperial Blue whisky

Suntory has revived its bid to buy entry-level Indian whisky Imperial Blue after showing initial interest in the brand last year, the Economic Times has reported.

Suntory refused to confirm whether rumours of its renewed bid were true, telling db that the company does not comment on speculation as a matter of policy.

However, it did not deny the claims made by local media over its interest in Imperial Blue.

Rumours of Suntory’s renewed bid come just days after it was reported that Indian distiller Tilaknagar Industries, which has been the frontrunner in the race to purchase Imperial Blue, is suffering from funding woes.

Tilaknagar Industries is reportedly looking to raise US$500 million to acquire the brand from Pernod Ricard. The financing strategy is expected to involve a mix of debt and equity, with a larger portion coming from debt.

Suntory dropped out of the race to buy the Indian whisky last year after Pernod Ricard asked for US$1 billion for the brand. Since then, the French multinational is reported to have cut its asking price to US$600-$650m.

Imperial Blue, launched in 1997, is a blend of Indian grain spirits with imported Scotch malts. The whisky brand is currently the third largest in India, but its performance over the past few years has been lacklustre. Overall volumes of Imperial Blue, which holds an 8.6% share of the market, have declined by 4% over the last five years. The brand recorded sales of 22.2 million cases in 2024, showing minimal growth compared to the previous year. Its falling sales coincide with the premiumisation trend which has evolved among Indian consumers in recent years.

Suntory is on a path to develop its business in the Indian market. The Japanese business announced the establishment of Suntory India Private Limited in June 2024, planning to accelerate growth in the market through the newly-established local arm.

Suntory CEO Takeshi Niinami revealed at the time that in the next five to 10 years, the company hopes its Indian arm will make up a double-digit proportion of the business. “More than 10% is our goal,” he said when asked about long-term plans in India.