The initial public offer (IPO) of <keyword id="1469523" type="General" weightage="100" keywordseo="Allied-Blenders-and-Distillers" source="Orion">Allied Blenders and Distillers</keyword>, which popularly manufactures <keyword id="22200942" type="General" weightage="20" keywordseo="Officers-Choice-whiskey" source="keywords">Officer’s Choice whiskey</keyword>, is set to close today. The company aims to raise around Rs 1,500 crore from anchor, institutional and retail investors combined, with its share priced between Rs 267-281.<br /><br />Allotment of shares to successful investors will take place by 1st July, while the listing is set for 2nd July, 2024. Retail investors can invest a minimum of Rs 14,893 and a maximum of Rs 1,93,609 in this issue. If you are mulling whether or not to invest in this IPO, here’s all you need to know about it:<br /><cmsannotation type="cmsannotation" annotationid="About Allied Blenders and Distillers" comment="subhead" text="About Allied Blenders and Distillers"><span data-til="noop">About Allied Blenders and Distillers</span></cmsannotation><br />Allied Blenders is the largest home-grown brand and a leading exporter, when it comes to <keyword id="20830317" type="General" weightage="20" keywordseo="Indian-made-foreign-liquor" source="keywords">Indian-made foreign liquor</keyword>, also known as <keyword id="20485471" type="General" weightage="20" keywordseo="IMFL" source="keywords">IMFL</keyword>. Between FY14 and FY22, the company’s annual sales volume ranked third in the country. And as of FY23, Allied Blenders commands about 11.8% share in the Indian whiskey market.<br /><br />Their most famous offering, the Officer’s Choice whiskey, was launched in 1988. Amongst its other products are <keyword id="21862256" type="General" weightage="20" keywordseo="sterling-reserve" source="keywords">Sterling Reserve</keyword>, <keyword id="22200943" type="General" weightage="20" keywordseo="officers-choice-blue-and-iconiq-whisky" source="Orion">Officer’s Choice Blue and ICONiQ Whisky</keyword>. As of December 31st, 2023, the company had earned a net profit of Rs 4.2 crore.<br /><br />The company wants to raise funds in order to repay, and prepay some of its loans, and for other general corporate purposes as well. While the company is well-placed within the IMFL segment and has a strong, pan-India distribution network, it has its own share of risks as well.<br /><cmsannotation type="cmsannotation" annotationid="What are the risks?" comment="subhead" text="What are the risks?"><span data-til="noop">What are the risks?</span></cmsannotation><br />The company is excessively reliant on sales of its whiskey products, and particularly that of Officer’s choice. As of December 31, 2023, the company’s total revenue from all its products was Rs 5,751.29 crores. Out of this, revenue exclusively from its whiskey offerings stood at a staggering Rs 5,575.82 crores, or 94.33%. Sales of brandy products brought in 123.34 crores, while rum and vodka earned around Rs 43 crore and Rs 4 crore, respectively. <br /><br />Not just whiskey, their heavy reliance on the Officer’s Choice brand can also spell trouble in the future, if the brand name is adversely affected in any manner. As of December 2023, 73.02% of the company’s total sales stemmed from Officer’s Choice. <br /><br />Other than that, its promoters are also engaged in similar businesses, which could mean loss of potential opportunities for the company. Moreover, most of the company’s revenue stems from just3 states, namely <keyword id="6357713" type="General" weightage="20" keywordseo="uttar-pradesh" source="Orion">Uttar Pradesh</keyword>, <keyword id="22200944" type="General" weightage="20" keywordseo="telangana-and-west-bengal" source="Orion">Telangana and West Bengal</keyword>. Such significant concentrations in almost every domain leave the company very vulnerable to all kinds of risks.<br /><br />The company owns and operates nine bottling units, while being in a non-exclusive agreement with 18 others. This makes it heavily reliant on third-party bottling facilities. At present, Allied Blenders is embroiled in 31 trademark infringement cases, which means it will direct a significant amount of revenue towards meeting legal fees, not to mention the financial costs, should it lose a case. <br /><br />In comparison to its peers, <keyword id="160498" type="General" weightage="20" keywordseo="United-Spirits-limited" source="Orion">United Spirits limited</keyword>, whose annual income in FY23 stood at Rs 27,888.5 crore, and <keyword id="61385" type="General" weightage="20" keywordseo="Radico-Khaitan" source="Orion">Radico Khaitan</keyword> Ltd, which earned Rs 12,753 crores, its annual income was far lower, at Rs 7,116 crores.<br /><cmsannotation type="cmsannotation" annotationid="What are the experts saying?" comment="subhead" text="What are the experts saying?"><span data-til="noop">What are the experts saying? <br /></span></cmsannotation>It's a mixed bag, but experts are advising staying away from the issue. As per stock analyst Dilip Dawda, “based on the company’s annualized FY24 earnings, the issue appears aggressively priced. While the management is hopeful that it will level its net profit margins with its listed peers within 2 years, it appears to be a long-term story. There is no harm in skipping this exorbitantly priced bet". <br /><br />On the other hand, Mastertrust broking and investments advise subscribing to the IPO, but from a long-term view. Per them, “the company is looking to raise Rs 1,000 crore from the public, most of which will be utilized to pare down the debt and the company will then become almost debt free. This will result in massive cost savings for the company, as they pay a significant amount in interest costs. The IPO is priced at a lower valuation relative to its listed peers. Hence, we advise subscribing to the IPO keeping a long term view". <br />

Allied Blenders and Distillers IPO : Should you subscribe? Know all about it here

<ul><li><keyword id="4080293" type="General" weightage="20" keywordseo="Allied-Blenders-Distillers" source="Orion">Allied Blenders &amp; Distillers</keyword> has filed draft papers with SEBI to raise ₹2,000 crore from the public.</li><li>It consists of a fresh issue of ₹1,000 crore and an offer for sale by promoters of shares worth ₹1,000 crore.</li><li>Some amount of the IPO money will be used to repay debt and rest will be for general corporate purposes.</li></ul>Allied Blenders and Distillers, an Indian spirits company and maker of alcohol products like <keyword id="483085" type="General" weightage="20" keywordseo="officers-choice" source="Orion">Officer's Choice</keyword> Whisky, Sterling Reserve, Officer’s Choice Blue and others, has filed a DRHP with the markets regulator SEBI for a ₹2,000 crore IPO. <br /><br />The company sells alcoholic beverages in India and abroad with a wide range like whiskey, rum, brandy and vodka across 29 countries. It owns nine bottling units, one distilling facility and over 22 outsourced manufacturing sites.<br /><br />It faces competition from listed companies like United Spirits and Radico Khaitan that have a strong hold over the market. <br /><br />Lockdown induced due to Covid-19 pandemic has left a huge scar on the company’s operations. Its distillery and bottling facilities were temporarily closed for several weeks during lockdown in the months of March and April 2020, leading to dip in sales volumes since then. <br /><br />Besides, the national lockdown mandated by the government also resulted in complete ban on the sale of alcohol in India, which significantly impacted its business, inventories and cash flows in 2020. <br /><br />The total cases sold by the company declined from 33.23 million cases in FY20 to 25.52 million cases in FY21. <br /><br />Moreover, the company is in a competitive market wherein marketing and pricing by its competitors also impacts its sales. <br /><br />“Sales of our products could also be adversely affected by other factors, including increases in excise taxes, supply, production or distribution changes / interruptions, marketing or pricing actions by one or more of our competitors, changes in consumer preferences or other factors. Any such adverse development could result in significant loss which would materially and adversely affect our business, profitability and reputation,” said the firm in its DRHP. <br /><br />As on December 31, 2021, the total outstanding borrowings of the company stood at ₹926 crore. <br /><br />All these uncertainties hit by the pandemic reduced its profitability of the company by a large amount.<br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Profit<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY21<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹6,378 crore <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2.5 crore <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY20<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹8,119 crore <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹12.7 crore <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY19<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹8,934 crore <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹15.2 crore <br /><br /></td></tr></tbody></table>In fact, its advertisement and promotion expenses also came down to ₹90 crore in FY21 from ₹168 crore in FY19. However it has high hopes of a rising population of the eligible age group required for consuming alcohol. <br /><br />The market for alcohol beverages in India is estimated to grow at 3.8% by volume between 2021 to 2025 as approximately 10-12 million people join the drinking population every year. <br /><br />Key players and their volume trends<br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Players<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Volume in FY21<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">United Spirits<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">70.7 million<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Pernod Ricard India<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">55 million<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Allied Blender and Distillers<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25.5 million<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Radico Khaitan<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">22.3 million<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">John Distilleries<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">17.8 million<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tilaknagar Industries<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.4 million <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jagatjit Industries<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.7 million<br /><br /></td></tr></tbody></table><br /><strong>SEE ALSO: </strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/it-could-be-slowflation-not-stagflation-and-its-better-for-the-equity-markets/articleshow/92567106.cms">It could be slowflation not stagflation – and it’s better for the equity markets</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/startups-like-unacademy-vedantu-blue-stone-caratlane-go-physical-from-digital-as-pandemic-boom-ends/articleshow/92564319.cms">Startups go physical from digital as pandemic boom ends</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/indian-credit-card-users-spend-40x-more-than-debit-card-users-online/articleshow/92543305.cms">Indian credit card users spend 40x more than debit card users online</a>

Officer’s Choice maker files for a ₹2,000 cr IPO banking on more people hitting alcohol eligible age

<p>Sure, craft whiskeys are growing in popularity.</p><p>But one whiskey brand dominates the market: Johnnie Walker.</p><p>Johnnie Walker's retail value was $5.3 billion in 2014, according to a research note from Bank of America Merrill Lynch. That brand is owned by British multinational Diageo..</p><p>It was followed by Jack Daniel's, a Brown-Forman company, at $2.7 billion, and AB D's Officer's Choice, at $2.1 billion.</p><p>Importantly, though, some smaller brands were growing faster last year, including Imperial Blue and Haywards, both of which benefitted from the growing Indian whiskey market, according to the note.</p><p>Here's how they stack up:</p><p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="BAML" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/558ab6196bb3f79446a2e6c2-960/screen shot 2015-06-24 at 9.51.30 am.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/558ab6196bb3f79446a2e6c2-911-646/screen shot 2015-06-24 at 9.51.30 am.png" border="0" alt="Screen Shot 2015 06 24 at 9.51.30 AM" /></a><p class="source"><span>BAML</span></p></div><p></p></div></div></p><p>And by retail value:</p><p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="BAML" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/558ab62e6da8110c5754018d-960/screen shot 2015-06-24 at 9.51.34 am.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/558ab62e6da8110c5754018d-504-546/screen shot 2015-06-24 at 9.51.34 am.png" border="0" alt="Screen Shot 2015 06 24 at 9.51.34 AM" /></a><p class="source"><span>BAML</span></p></div><p></p></div></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/how-to-pronounce-scotch-whisky-brands-2015-1">Here's The Right Way To Say 11 Scotch Whisky Brands You're Mispronouncing</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="9heDZ0cjq-0wtIjXzaYfbsXGKTtEn_bp" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', '9heDZ0cjq-0wtIjXzaYfbsXGKTtEn_bp',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

The most powerful whiskey brands in the world

<p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/58cab144dd0895f53f8b47fb-1760/undefined" border="0" alt="Truck Image" data-mce-source="Casamigos"><p class="source"><span>Casamigos</span></p><p class="caption">George Clooney and Rande Gerber.</p></img></div><p></p></div></div><ul><li><strong>Casamigos started as an idea between Clooney and friend Rande Gerber while they were in Mexico.</strong></li><li><strong>The company sold to Diageo for $1 billion (£79 million) in June 2017.</strong></li><li><strong>The sale just made Clooney the highest-paid actor of the last year, <a href="https://www.businessinsider.com/george-clooney-highest-paid-actor-because-of-tequila-2018-8" target="_blank" rel="noopener">according to Forbes.</a></strong></li><li><strong>The friends researched extensively to create a tequila they could drink all day without getting a hangover.</strong></li><li><strong>In 2017, Gerber told BI he and Clooney were still tasting every batch of the tequila.</strong></li></ul><hr><p><br>George Clooney's success in the world of Hollywood is well known - as are his efforts in political activism and humanitarian work.</br></p><p>A lesser known fact is that the actor and two friends founded <a href="https://casamigostequila.com/" target="_blank" rel="noopener noreferrer">one of the fastest-growing tequila brands in the world</a> by accident in 2013. That company is <a href="https://casamigostequila.com/" target="_blank" rel="noopener">Casamigos</a>, which&#xa0;<a href="https://uk.businessinsider.com/george-clooney-tequila-casamigos-sold-for-1-billion-2017-6" target="_blank" rel="noopener noreferrer">sold to&#xa0;Diageo for $1 billion</a>&#xa0;in June 2017 - a sale that just <a href="https://www.businessinsider.com/george-clooney-highest-paid-actor-because-of-tequila-2018-8" target="_blank" rel="noopener">made Clooney the highest-paid actor of 2018</a>, despite not appearing in a film.</p><p>Diageo agreed to pay $700 million initially, with the potential of another $300 million based on the tequila's performance over 10 years, <a href="https://www.cnbc.com/2017/06/21/george-clooney-just-sold-his-tequila-business-for-1-billion.html" target="_blank" rel="noopener noreferrer">according to CNBC.</a></p><p><a href="https://www.cnbc.com/2017/06/21/george-clooney-just-sold-his-tequila-business-for-1-billion.html" target="_blank" rel="noopener noreferrer">In an email to CNBC at the time of the sale</a>, Clooney said:&#xa0;"If you asked us four years ago if we had a billion dollar company, I don't think we would have said yes. This reflects Diageo's belief in our company and our belief in Diageo. But we're not going anywhere. We'll still be very much a part of Casamigos. Starting with a shot tonight. Maybe two."</p><p>Shortly before the Diageo sale, in March 2017, Casamigos co-founder and ex-bar and nightclub owner&#xa0;<a href="https://www.businessinsider.com/george-clooney-tequila-brand-casamigos-2017-3" target="_blank" rel="noopener noreferrer">Rande Gerber told Business Insider</a>&#xa0;that making money was never the reason for launching the brand.&#xa0;</p><p>"What was really important for George and I was that we have the best tequila, but we make it affordable for everyone," he said. "George doesn't need the money, I didn't need it, Mike didn't need it - it wasn't the reason behind launching a tequila. We wanted everyone to be able to drink it and not be exclusive."</p><p>Clooney came up with the tequila idea with Gerber - <a href="https://www.businessinsider.com/the-incredible-life-of-cindy-crawfords-husband-rande-gerber-2017-5" target="_blank" rel="noopener">who also happens to be the husband of supermodel Cindy Crawford</a> - while the two were spending time at their houses in Mexico.</p><p>They had met nearly 30 years ago while George was shooting one of his first films in New York.</p><p>"He was coming into one of my bars called Morgan's at the time... so I met him at the bar over a tequila," Gerber told Business Insider. "He was spending three months in New York, and every night we would hang out at the bar and we became great friends."</p><p>The two would go on golf trips around the country with other friends - "It was called 'the Golf trip,' but we played maybe nine holes now and then" - which is where they met real estate guru Mike Meldman.</p><p>"A mutual friend connected us, saying we should play at one of Mike's golf courses," Gerber said. "He took care of us and we developed a friendship through that, then we built our homes in Mexico in Mike's development."</p><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/58cab144dd0895f53f8b47fc-2000" border="0" alt="Summer 2015 copy" data-mce-source="Casamigos"><p class="source"><span>Casamigos</span></p><p class="caption">Casamigos was the name of Clooney and Gerber's homes in Mexico.</p></img></div><p></p></div></div><p>Clooney and Gerber's houses sat beside each other on the piece of property, which was called Casamigos.</p><p>"It felt like one compound," Gerber said. "We'd have a bunch of our friends there - breakfast at our place, lunch at his, dinner at ours. It felt like one big house."</p><p>And their meal times often involved sipping tequila.</p><p>"Casamigos really started by accident as far as a company," he said. "As you do in Mexico, we would drink a lot of tequila. We'd go out to bars and restaurants and bartenders would recommend them. Some were good, some not so good, and some expensive. There came a point where George turned to me and said, 'Why don't we create one that's perfect for us?'"</p><p>"We wanted one that didn't burn going down, that was super smooth, and had the right flavour profile. One that we didn't have to mix - typically we drink it straight or on the rocks - that we could drink all day long and not be hungover in the morning."</p><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/58cab144dd0895f53f8b47fd-1960/george%20clooney%20and%20rande%20gerber%20in%20jalisco3%201.jpeg" border="0" alt="George Clooney and Rande Gerber in Jalisco[3] (1)" data-mce-source="Casamigos"><p class="source"><span>Casamigos</span></p><p class="caption">Motorbike was the vehicle of choice for Clooney and Gerber in Mexico.</p></img></div><p></p></div></div><h2>Tequila pilgrimage</h2><p>The duo began their tequila pilgrimage. They did research, met with distillers, trialled samples, and did blind taste tests with their friends and family until they found a recipe with no burn at all.</p><p>"It ended up being almost two years and 700 samples later - it was perfect," Gerber said. "There was a point where we all chose one, and it was ours. Not only did we know we had something great that we loved, but all of our friends loved it as well."</p><p>Bottles were ordered, served, and drank at their homes in Casamigos, which fittingly means "House of Friends."</p><p>While the pair may claim they can drink it all day and not be hungover the next, it's probably not recommended for inexperienced tequila drinkers - the average bottle contains 40% alcohol.</p><p>Without even realising, Gerber said he and Clooney were bringing in about 1,000 bottles, and were told by the distiller that they needed to get licensed.</p><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/58cab144dd0895f53f8b47fe-2000" border="0" alt="cheers" data-mce-source="Casamigos"><p class="source"><span>Casamigos</span></p><p class="caption">The three founders: Mike Meldman, George Clooney, and Rande Gerber.</p></img></div><p></p></div></div><p>They met with a distributor in the US who wanted to get on board, and launched the tequila as "Casamigos" along with the help from their well-connected friend Meldman.</p><p>"He's wonderful at marketing, and caters to the high-end market," Gerber said. "He's smart, and has incredible relationships."</p><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/58cab144dd0895f53f8b47ff-2000" border="0" alt="RG GC in Distillery " data-mce-source="Casamigos"><p class="source"><span>Casamigos</span></p><p class="caption">Casamigos is aged and barrelled in Mexico.</p></img></div><p></p></div></div><h2>The&#xa0;tequila gold rush</h2><p>The ultra-premium small batch tequila is aged and barreled, Gerber said, while a master distiller "chooses the right moment to take it from the barrel to the bottle." He added: "We use old brick ovens, and the Blue Weber Agaves are grown for seven to nine years - it's a long process."</p><p>They use a simple stick-on label on an unfussy bottle, with a plain cork to seal it. The brand sells reposado, anejo, and blanco tequilas, which <a href="https://www.reservebar.com/tequila/casamigos" target="_blank" rel="noopener">range from $20 to $115 online</a>, depending on the size.</p><p>It also <a href="https://www.forbes.com/sites/karlaalindahao/2018/02/13/george-clooney-and-rande-gerber-launch-new-casamigos-mezcal-2018/#5c0604a529f8" target="_blank" rel="noopener">launched a mezcal</a> in the US, Australia, UK, and Canada in February 2018, which comes in at $73 for 750ml.</p><p>Partly due to having George's name attached, the Casamigos brand "immediately took off" through word of mouth, according to Gerber.</p><p>"We started winning awards, which legitimises you," he said. The brand <a href="http://www.lux-intl.com/2015-award-winning-casamigos-tequila" target="_blank" rel="noopener noreferrer">has won gold medals</a>&#xa0;at the Los Angeles International Spirits Competition, the San Francisco World Spirits Competition, The New York World Wine &amp; Spirits Competition, The Spirits of Mexico Tasting Competition, and from The Beverage Testing Institute. "From then on it gained momentum."</p><p>The brand doubled its volume of sales&#xa0;from 38,000&#xa0;nine-litre cases in 2014 to 80,000 in 2015,&#xa0;<a href="http://adage.com/article/cmo-strategy/tequila-s-gold-rush-fueled-luxury-brands/304192/" target="_blank" rel="noopener noreferrer">according to Ad Age</a>, which said it was part of a tequila "gold rush."</p><p>Casamigos told Business Insider it more than doubled its volume again in 2016, although Gerber, who works full-time running Casamigos,&#xa0;declined to provide exact sales figures and would not discuss the company's earnings.</p><p>A spokesperson for Diageo also said on Thursday that it's "too early" to release financial results for the brand, which is&#xa0;currently sold&#xa0;in more than 20&#xa0;countries including the&#xa0;US, Canada, UK, Australia, New Zealand, Hong Kong, Spain, Italy, Peru, the Dominican Republic, and Jamaica.</p><p>Everything is done in-house in offices in LA, were Rande is based, as well as New York and Arizona. He added that George and Mike are still heavily involved, and at the time of the Diageo sale&#xa0;<a href="https://www.cnbc.com/2017/06/21/george-clooney-just-sold-his-tequila-business-for-1-billion.html" target="_blank" rel="noopener noreferrer">CNBC reported</a>&#xa0;that Clooney, Gerber and Meldman were expected to stay with the company after its acquisition.</p><p>"We all contribute an equal amount. Even though I run the company, we all play our own role," Gerber said in March 2017. "George is very involved in the business. He's in LA this week, and he'll be in the office when he's here to go over ideas."</p><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/58cab144dd0895f53f8b4800-1714/casamigos-0757retouchedfinal.jpg" border="0" alt="Casamigos 0757_retouched_Final" data-mce-source="Casamigos"><p class="source"><span>Casamigos</span></p><p class="caption">Gerber and Clooney still taste every batch.</p></img></div><p></p></div></div><p>He added that the two also make sure they taste every batch.</p><p>"We have our master distiller, and he's so great that we know they're all consistent, but when a new batch comes out he'll send a bottle and George and I will taste it," Gerber said. "We always want to be the first or the second one to taste it. It's kind of a tradition. We open the bottle, toast, and take a sip."</p><p>"It's always perfect. If you have a great master distiller, they have this palette and sense of smell and taste that has almost been passed down from generation to generation," he said. "We want to be part of that process."</p><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/58cab144dd0895f53f8b4801-2000/casamigos%20tequila%20founders%20rande%20gerber%20and%20george%20clooneyphoto%20credit.jpg" border="0" alt="Casamigos Tequila Founders Rande Gerber and George Clooney_Photo Credit_..." data-mce-source="Casamigos"><p class="source"><span>Casamigos</span></p><p class="caption">Casamigos is "an extension of who we are and our lifestyle," Gerber said.</p></img></div><p></p></div></div><h2>Brits are turning to tequila</h2><p>Gerber added that Casamigos has been "incredible" growth in the UK, where beforehand it "wasn't that big of a thing."</p><p>"George and [his wife] Amal have a beautiful home in the UK now, and he wanted to make sure he could drink it there," Gerber said. "Even though Brits aren't known as tequila drinkers, a lot of whisky drinkers and vodka drinkers have switched to drinking Casamigos."</p><p>Gerber added that it's "not your typical tequila" as it is low in calories and made from 100% Blue Weber Agaves, which he says has helped it catch on with both men and women.</p><p>"The authenticity of everything that we've done, from making it ourselves to naming it, has been an extension of who we are and our lifestyle," Gerber said. "It's been a fun thing for us to do."</p><p>While the pair sold their homes in Mexico shortly before we spoke to Gerber, he said they were looking at building new ones in the same place. Who knows what idea their next abodes will inspire.</p><div>    <iframe src="//instagram.com/p/BQyhDrWhO5T/embed/" width="658" height="auto" frameborder="0" scrolling="no" allowtransparency="true">    </iframe></div>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/chase-cards-ceo-on-her-success-and-working-with-jamie-dimon-2018-7">The Chase Cards CEO on working with Jamie Dimon and her own success</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/nm3z1crH-xjRU7l6Z.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div></hr>

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