On June 19, 2025, Diageo India, operating as United Spirits Limited, acquired a majority stake in NAO Spirits for Rs 130 crore (US$15.2 million), making the Goa-based craft spirits producer its subsidiary. Building on a Rs 31.5 crore (US$4.1 million) investment for a 22.5% stake in 2021, this move underscores Diageo’s confidence in India’s craft spirits market and its potential to reshape the global industry.
NAO Spirits’ rise reflects India’s growing appetite for premium, locally crafted spirits, fueled by “Made in India” pride and a shift toward experimental drinking. Launched in 2017, NAO pioneered India’s first craft gin, Greater Than, blending nine botanicals from India and beyond. Its 2018 release, Hapusa, uses foraged Himalayan juniper and unique ingredients like fresh turmeric and raw mango, while the 2024 debut of Pipa, an aged spiced rum crafted from jaggery spirit, taps into the promising rum category. These brands resonate with younger consumers seeking authentic, innovative options. Diageo’s Ventures arm, which backs disruptive alcobev startups, sees NAO as a strategic fit to diversify its portfolio beyond global brands like Tanqueray and Johnnie Walker. With Diageo’s distribution network and production capabilities, NAO is poised to expand internationally, while Pipa could capitalize on predictions that rum will mirror gin’s global surge.
The acquisition empowers NAO Spirits to scale while preserving its creative core. Founder Anand Virmani, who remains CEO, insists the brand’s unconventional mindset will endure. The Rs 130 crore (US$15.2 million) valuation reflects NAO’s leadership in India’s craft gin market, though balancing scalability with artisanal identity remains a challenge. Diageo’s expertise will unlock new markets, positioning NAO to elevate India’s craft spirits globally.
This deal reverberates beyond NAO Spirits, signaling a maturing Indian craft spirits industry. It may inspire entrepreneurs and foster partnerships between global giants and local innovators. As consumers embrace local provenance, India’s spirits could gain prominence worldwide. Whether Indian craft spirits can replicate gin’s global boom remains uncertain, but with NAO Spirits leading, the future is spirited.
