In one of the biggest F&B acquisition deals of the year, Third Eye Distillery, the parent company of Stranger & Sons Gin, has announced a strategic acquisition in Foxtrot Beverages, the holding entity of Svami for an enterprise value of USD 13 million or INR 100 crore.
This marks the second acquisition for TED after Countertop earlier this year. Through this acquisition, Third Eye Distillery aims to tap into the non-alcoholic FMCG beverage market. The non-alcoholic beverage market is expected to see exponential growth in the coming years and reach 18 billion by 2026. Svami has successfully positioned itself as a market leader in the premium non-alcoholic beverage market in India and is projected to close FY23 at approximately USD 5 million of revenue.
Founded in 2018, Third Eye Distillery has been a pioneer in bringing the craft gin revolution to India and has placed India on the global spirits map with Stranger & Sons Gin and is continuing to expand its portfolio. In 2022, the company has made strategic moves which are in line with its growth objectives. From acquiring a majority stake in Countertop India, a consultancy focused on elevating the beverage & hospitality industry, to partnering with French Artisanal rum brand ‘Plantation’ in India, to now acquiring Svami, Third Eye Distillery has become one of the fastest growing startups in the alco-beverage space in India.
Speaking on the transaction, Vidur Gupta (co-founder of Third Eye Distillery) says, “This acquisition gives TED opportunity to strengthen our participation in the fast-growing Beverage market in India. Third Eye Distillery and Svami have great business synergies and with this deal we wish to add to the premium drinking ecosystem in India and propel more brands from India towards having a global presence, Svami definitely fits the bill and we are excited to see what the future holds.”
Founded in 2018, Svami has been a first mover and the market leader in home grown adult non-alcoholic drinks. Svami has created one of the most relevant non-alcoholic product portfolios coming out of India. The brand currently has over 2500 touchpoints in India and is available in modern trade, general trade and ecommerce platforms. The brand is also available in Singapore, Thailand and will soon launch in the UAE.
Svami has worked with alco-bev brands across categories and segments, from working with homegrown spirits brands to collaborating with industry heavyweights like Pernod Ricard India, Moet-Hennessy India and continues to have such partnerships in the pipeline. Svami will aim to aggressively expand its portfolio and will continue to work with brands going forward. Svami will also be looking to aggressively expand its portfolio, channels of distribution as well as teams.