Third Eye Distillery Holdings, the makers of Indian gin Stranger & Sons, has acquired a controlling stake in craft tonics and mixers brand Svami, owned by Foxtrot Beverages Private Limited. Third Eye co-founder Vidur Gupta said the acquisition has been done at a valuation of ₹100 crore and the company has taken 51% stake in the firm.
Founded by Rahul Mehra, Sakshi Saigal and Vidur Gupta in Goa in 2018, Third Eye has expanded to major metros across Maharashtra, Delhi, Karnataka, Pondicherry and Rajasthan as more Indians, especially millennials, take to drinking gin. Internationally, Stranger & Sons has a global footprint in the UK, Singapore, Thailand, Taiwan, Mauritius, New Zealand, Italy, the US and UAE.
Third Eye Distillery is an equity-funded company and the Svami acquisition is being funded from its existing capital within the business which has been earmarked for strategic opportunities.
“Our vision was always to be a premium house of brands that has come out of India, something like a Diageo or a Pernod Ricard. We have decided we want to be in the non-alcoholic segment and also to bring plantation rum into India. The non-alcoholic adult beverage market space was exciting for us and Svami was the market leader,” he said.
Aneesh Bhasin, co-founder of Svami said, “Eventually, Third Eye wants to be a house of brands and India so far has not had a ‘contemporary’ house of brands. We are excited that it is happening now.” The founders will continue to run the company but the investment will help drive the business objectives. Set up in 2015, Svami products are available in general trade in major metros and cities. In modern trade they are present at Nature’s Basket, Food Hall and 24×7, among others. The company also exports to Hong Kong, Singapore, Maldives and Mauritius. Last year, LVMH-owned Moët Hennessy tied up with Svami to create limited-edition drink mixers.
As a first, these curated non-alcoholic mixers were crafted to be paired with the company’s vodka, whisky and cognac range (Belvedere, Glenmorangie and Hennessy), for Indian consumers. Svami sells about 12 products including a variety of tonic waters, a lemonade, a diet cola and a few others. Bhasin said Svami achieved a revenue of $2 million in FY22 and is looking to reach a target of $5 million this year.
“The idea is to grow the Indian adult beverage space and bolster the growth of Svami either internationally or nationally so they can work with every sort of brand out there,” added Gupta.
He said Third Eye’s existing facility in Goa has four pot-stills (a type of distillation apparatus) with a capacity to produce 25,000 cases a month. It is also in the process of setting up a new facility of 30,000 sq. ft. which will expand its capacity to create a larger spectrum of spirits.
According to a report published by Allied Market Research, India’s gin market size was valued at $914.7 million in 2020, and is projected to reach $1,598.2 million by 2030, growing at a CAGR of 5.9%.
In March this year, United Spirits, the parent company of Diageo India announced an investment of ₹31.5 crore to acquire a strategic minority stake in Third Eye’s competitor Nao Spirits & Beverages.
