UB in talks with W&M for licensing of brands

UB Group, which is eyeing the private label business of the European drinks major Whyte & Mackay, is in discussion with the group to sign a bulk supply agreement and also for franchising some of the brands from its mainline business.

"Apart from submitting a bid for Invergordon, one of the scotch distillaries of Whyte & Mackay, the Indian group expects at least to secure a distribution and licensing deal with the UK firm," said sources close to the development.

Whyte & Mackay Chairman and Chief Executive Vivian Imerman had on Monday denied the reports that UB has bought the company for 400 million pound.

The company also clarified that it has received several offers for its Invergordon distillery, which mainly produces own-label scotch, after putting the business up for sale last year.

However, UB sources were not available for comments.

UB, the third largest spirit company in the world, has been looking to expand its international business.

The Indian group made its first international investment with the acquisition of French wine company Bouvet-Ladubay in July this year.

Vijay Mallya-promoted United Spirits made the bid to acquire Invergordon in June this year. The bid amount is learnt to be around Rs 1,800 crore (200 million pound).

Located at Cromarty Firth in northern Scotland, the Invergordon distillery is the largest grain distillery in Europe. In last December, Whyte & Mackay announced about selling the facility as it wanted to exit from the private label business.

The UB's bid for Invergordon has been aimed at beating European scotch maker's opposition to permit UB's molasses-based whiskey products and get a foothold in the European markets.