Diageo’s USL begins strategic review of select Popular brands

United Spirits Ltd (USL), a subsidiary of British multinational beverage alcohol company Diageo, has started a strategic review of select Popular brands.

The move is part of the company’s long-term profitable growth strategy, which involves “premiumising” its portfolio.

United Spirits managing director and CEO Anand Kripalu on a conference call with investors said: “Several outcomes are possible, including, but not limited to, extension of the franchise model that we started some years ago, accelerating select brands by additional investment, potential divestment, and an organisational review of our operating model. The strategic review will assess all options considering the potential impact of each approach.”

The review process will focus on approximately half of the Popular portfolio by volume. It comprises nearly 30 brands.

The deal should conclude by the end of this calendar year.

Names of the brand that will be part of the review remain undisclosed.

However, the company noted that McDowell’s or Director’s Special trademarks will not be a part.

Kripalu said: “This review reinforces USL’s and Diageo’s commitment to deliver sustainable long-term growth and improved profitability, through a sharpened focus on core Popular and Prestige & Above brands, including international brands.”

In January 2018, USL announced it is planning to increase the contribution of its premium brands to its overall India-based business to up to 80%.

Diageo acquired USL in 2015.