twenty sixth July, 2021 by Kate Malczewski
United Spirits, the Diageo-controlled Indian drinks group, has exited its funding in Chennai-based booze supply start-up Hip Bar, placing its plans for alcohol e-commerce on maintain.
In June 2018, Diageo India splashed Rs 27 crore (US$3.96 million) to acquire a 26% equity stake in Hip Bar by means of its United Spirits arm.
On the time, the Johnnie Walker proprietor seen Hip Bar – an app for house alcohol supply – as a method into India’s e-commerce market, stating the start-up was “creating the best conduit for all gamers throughout the business because it opens up a brand new and handy route to succeed in customers” within the nation’s “advanced regulatory setting”.
In 2019, United Spirits divested its Indian wine division Four Seasons with a purpose to give attention to its spirits enterprise within the nation, which included Hip Bar.
Nonetheless, the agency has now determined to go away the supply enterprise, promoting again its stake to the start-up’s founder, Prasanna Natarajan, for Rs 52 lakh (US$69,839).
A Diageo India spokesperson stated: “Since United Spirits Restricted made a small funding in HipBar in 2018, e-commerce fashions have developed considerably. We’re excited in regards to the potential for house supply within the alcobev sector and can proceed to work intently with authorities and business to develop this channel and a mannequin that may work for India.”
Whereas India’s regulatory setting could not at present align with Diageo’s plans, the Covid-19 pandemic has led to a surge in alcohol e-commerce internationally.
Main gamers have recognised the market’s potential, akin to when Uber acquired delivery service Drizly earlier this year.
Extra lately, Campari Group and Moët Hennessy partnered to construct a premium European on-line enterprise for wines and spirits.
For extra on the e-commerce growth, learn our analysis of the trend.