United Spirits (USL) has reportedly started licensing out economy brands such as Bagpiper Whisky and Celebration Rum to regional bottlers in return for annual royalty payments. The country’s largest distiller is offering the big volume brands on a five-year, extendable contract beginning with markets where profitability is under strain.
USL has struck deals with local bottling chieftains like Tilak Raj Sharma for Rajasthan and Chhattisgarh, Ponty Chadha family in Uttar Pradesh, K P Kedia family in Madhya Pradesh and Magunta Srinivasulu Reddy of Balaji Distilleries in Goa, Andhra Pradesh and Kerala.
United Spirits is the largest spirits company in India and a flagship entity of $2 billion UB group. It manufactures wide range of whisky, vodka, rum and other spirits.