Matcha: The New Superfood Taking Over India's Cafe Scene

There’s no denying that omni-channel brands are the future of restaurants. But we are living in an exciting times where delivery and cloud-kitchen business has a great role to play. And, there’s no denying that whenever there is a crisis people tend to innovate out of it and that’s what happened when Covid struck the world two years back.

Innovation is the Key

“I believe in the statement that anytime there's a crisis it represents an opportunity to get you out of there and do something a little out of the box. So, the motivation was very clear. We had at that time 400 people working with us. We are over a thousand now, probably inching towards 1200. And this is all within the three years Covid and post Covid era. At that point I also decided that while it was nice to kind of get into delivery with the existing brands, it was even more important to have independent identities,” shared Varun Tuli of the Yum Yum Tree Group who ventured into the cloud-kitchen model during the mid of the pandemic when he knew that he can’t let his people go because there was nothing to do in the restaurant kitchen.

Technology is the Need of the Hour

“We have 40 outlets now, and we'll be having 20 outlets by December and by March, we are targeting 100 outlets. We use AI-driven robotics and technology to maintain consistency because when we expand, the pizza has to be same, the sauce has to be same, the cheese & topping has to be same quantity and the quality has to be maintained. So that's where the technology plays a role and helps us create a brand,” pointed Mahesh Reddy, CEO, GoPizza India that is on an expansion spree in different parts of the country.

The Food has to be Right

“I am a chef by profession and not just an entrepreneur. So, I bring a totally different perspective when it comes to the front end and the back end. Restauranting is the only space where an individual is coming to you and he's giving you his attention for good half an hour, 40 minutes, or an hour. Food is what people go out for,” added Sunil Chauhan of FabCafe.

Being Transparent in Approach

“The credit for our fast growth goes to the Indian palate friendly menu that we have. So, the café revolution started when we wanted to open our outlets in tier two or three cities and like I said we have 125 outlets now in 50+ cities and very proudly I would like to share that 80% of our stores are in tier 2 and 3 cities and even in some tier 4 cities. It wasn’t easy because we started very small and with little savings that we had we built a self-sustainable model because we didn’t had any funding at the starting. I think being transparent in our approach and leveraging technology at the same time and being a customer obsessed brand has really worked for us,” concluded Neelam Singh, Co-Founder, The Burger Company.
 

As we are entering 2023, I personally feel the major trends that everyone should watch out for. From keeping local, natural and homegrown at the forefront to rise of plant based items on the menu and eventually brands trying hands on mock meat based items. Food trends has changed in the last 2-3 years and these as things are turning bright as more and more brands are now finding new avenues for innovation and growth. Though, dine-in has got a positive numbers for restaurant sales, off-premises dining also continue to rule the country.

Agriculture at the Forefront: It comes as no surprise that agriculture is at the forefront of today’s F&B trends. Regional agricultural structures, focus on domestic markets, local legumes, and produce but that’s just the tip of the iceberg. Other key trends include a further emphasis on supporting local which brings me to my second point.

Plant-based is the New Fancy: Plant-based eating has been a trendy part of food culture for some time now. Veganizing recipes, yes the vegan culture is at an all-time high, and people are shifting more towards veganism than ever before. Traditional dishes have already started being reinterpreted as vegan and which products are used in the process is capturing the market and the attention of consumers more than other food options available because this is food that comes from sustainable agriculture, which focuses on biodiversity and soil regeneration.

Mock Meat is here to Stay: MEAT SUBSTITUTE HAS POTENTIAL. Chefs and restaurateur have been talking about it for so long that mock meat is here to stay and is being widely liked by both vegetarians and non-vegetarians. Lately, there has been a strong focus on how we consume meat today and the many creative ways it is now being replaced and replicated.  

New Approach to Drinking: Booze-free, non-alcoholic drinks are taking off as more people consider new approaches to drinking and going out. In fact, restaurants like Chô have their hot-sellers that are booze-free, and non-alcoholic - a wide range from Lavender Fizz to Strawberry & Watermelon Smash and an all-time favorite our very own Vietnamese coffee in variations of drip coffee, black iced coffee, and iced coffee with condensed milk.

Solo Dining is Fashion: It is great to have some me time few times in a month. With a focus on wellness and treating oneself, solo dining is no longer taboo in fact some alone time is always welcome in this ever-so-hustling environment that we live in and restaurants are improving dining experiences for solo diners.

With Inputs from
Chef Vaibhav Bhargava, Partner, CHO- Vietnamese Kitchen & Bar, New Delhi

A few lines from The Indian Spirit read, “Whoever believes that India is a country of teetotalers clearly hasn’t scratched the surface… Alcohol has been a part of India’s Diaspora since time immemorial”, says Magandeep Singh, India’s first French qualified sommelier.

India's alcohol industry is the third largest in the world with a value of $35 billion. Various startups have emerged to gain a share of this rising market. The microbreweries we see sprouting in every corner of the city are here to stimulate India’s brew business. While microbreweries are making their mark, there are industry experts who have a different approach when alcohol is concerned.

Started as a sommelier in France, Magandeep Singh as he is rightly quoted is India’s first qualified sommelier, shares with Restaurant India, the importance of educating the masses about the quality of local spirits available in the market. .

Plan & Price it Right

The taste of wine is developing very fast with the influence of the western culture on the Indian young generation. The awareness about the fact that wine is good for health is on the rise.  Whereas love for quality wine and interest to taste something unique keeps many other coming into the wine shops.

When asked about his plans to scale the Alcohol industry, particularly wine, Magandeep Singh says,” We have got people who are opening restaurants and are pretty savvy about what they like or their clientele likes.”

“In India, the laws are complex and convoluted and it definitely should be changed to help the industry grow”, exclaims the French Sommelier.

The Industry Glitch

Given the rich diversity of India’s umpteen back stories, the boom of alcohol is unprecedented, but it’s a subject fuming with controversy. “The idea is more academic, we believe that if you educate people, it automatically leads to awareness and it further leads to a more mature market”, says Magandeep.

India is not much familiar with the quality of wine and this lacks in the understanding between any alcohol and quality wine. As a man, Magandeep says,” It was an easy path for me to venture in this interesting platform. What I hope is to see that same ease being extended in the years to come to women and also to the LGBT community.”

Also, Magandeep candidly spoke about how there was a glitch in some people’s mind that he doesn’t dress like a sommelier.

Wine Bars and Education

As Magandeep rightly claims,” I am not against drinking but I am more for the civility of drinking with moderation and it comes only through education.”

When asked about his future plans, Magandeep mentions,” Training institutes to conduct classes, educating the consumers and making wine bars an epicenter for all civilized drinking activities is where we see ourselves working upon in the near future.”

It’s a cash intensive industry which means to open an outlet, or a distillery or a brewery, you need a lot of investment and patience and also know the knowhow of the industry. “Combine, partner your skills, have a vision and stand by it steadfast”, says Magandeep.

Quality over Quantity

In spite of being in the alcohol business, Gagandeep shared a few interesting trends to watch out for in the years to come.

• Low Alcohol Drinks.
• Finer quality of alcohol rather than having volumes of alcohol.

Eating fruits and vegetables is always considered good and beneficial for a nutritious lifestyle. But who would have thought that drinking them can be even more fun and delicious. Keeping the beverage trends under consideration, restaurants are coming up with varieties of fruit or veggie based drinks and non alcoholic drinks namely ‘Mocktails’.

Considering the customer’s changing habits, it is perhaps the ideal time for alcohol free market to introduce varieties of mocktails. Alcohol free drinks are catching the attention of restaurants and chefs as the segment is showing promise. Evolving from the words ‘mock’ and ‘cocktail’, it is experiencing high demand with times among the customers where mocktails and cocktails are providing the same experience, the former being devoid of alcohol.

Constant expansion of mocktail segment is making restaurants work on intricate layers of flavors, attractive colors, quirky names and inventive presentations which are making the customers go crazy for the product. The beverage is all about freshness, quality, seasonality and creativity. The change in the drinking habits of people has created a lot of buzz in the industry which has allowed bartenders to experiment with the syrups and other flavorings to satisfy the customers.

It’s a spillover from the ongoing mocktail revolution happening across the country where people are choosing  to avoid alcohol.”We are constantly experimenting with our products in order to provide something new to our guests. We see the love and craving people carry for mocktails which is expected to grow in near future. Introduction of molecular gastronomy to our beverage segment did the rest in branding our beverage menu,” shares Dilip Raj, Co-owner, Str8up.

Innovating and experimenting

Mocktails are making their way into menus across India blending various ingredients into refreshing booze-free drinks. Customers who are looking for the same crisp and complex notes of wine and beer without any alcohol content are appreciating and falling in love with these drinks. Hence, mocktails are providing experience along with taste to a non-drinker who love to have a blast outside as well as at home. The presentation and flavor of the drink adds upon the experience of the customers.

Mocktail sector is forecasted to become more dynamic as offshoot categories, driving momentum in developed markets. It is believed that health consciousness and awareness will also contribute in shaping the consumption pattern within this beverage sector. “Mocktails are undergoing makeover at many restaurants in order to get as much attention as cocktails and wines. Restaurateurs are trying to make sure that mocktails can satisfy a customer’s non-alcoholic preferences. This new attention to mocktails is allowing the industry to experiment with ingredients,” shares Anthony Wilson, Co-owner and Mixologist, Str8up. He further adds, “Creativity is the driving force. It’s like being an artist using spirit flavors instead of colors. Creating a drink without wine or an oak-aged beverage without being aged in a barrel is considered as an art in our business. This innovation gives the opportunity for non-drinkers to raise a toast.”

Dabur India recently launched their first ever ready to drink packaged fruit-based mocktails under Real creating a buzz in the Indian market. The brand claimed to be the first for crafting ready-made mocktails by professional mixologists providing the same experience people have at restaurants. It clearly states that mocktail segment is experiencing more demand than ever which will certainly define the future of the beverage industry.      

Smart consumer has changed the beverages drastically. Travelling and higher disposable income has made them go out and drink which in turn has become the new trend altogether. Beverages have proved themselves to be a smart mover and are continually developing innovative marketing techniques to penetrate modern retail. But there are certain things which need to be improvised in this section.

Longer Shelf Life Is A Big Question

Consumer loyalty is hard to gain when it comes to bar. “The thing which I really feel about bars not having longer shelf life is just because they are not able to retain the consumers for long. They fail to manage the regular consumers walking in to their bars and that’s primarily because there is nothing new to offer,” shares Viraj Lamba, Founder, and Director at Funbars Hospitality. Also, it becomes tougher when fifty per cent of consumers are millennial because they want to see something new every day. They do not get excited by the same product and that is where they hop to a new place in search of something excited. Constant innovation could only maintain regularity of consumers. Reinvention is really important in business because things get stale quickly.

Craft Beer which was started ten years back has a different view from different people. Gurugram opened the first craft brewery in India in 2008 even though Pune claims it. “Ever since we have witnessed craft beer has become one of the most profitable and the product which has longevity for restaurateurs. At the same time it is also evolving the culture of craft beer inspired by West,” says Ishan Grover, Brewmaster and Partner at R J Brewing Solutions.

For restaurateurs quality is the major concern while envisioning any concept or creating a product. At the end of the day, restaurateurs have to treat it like a business so it’s a tight row where one has to balance out. One who achieves the quality and consistent product throughout wins the game.

Maintaining Consistency

Opening a bar and maintaining it are two different things. Having that consistency is not in everyone’s fate. “Every store can’t do well. Restaurateurs need to have deep pockets to understand that and bring consistency at their place. For example, if four out of eight stores are not doing well then they must give that store at least six months and a chance to survive. And, if they don’t do that then it’s going to shut anyway because cutting cost on quality is not an option,” avers Shatbhi Basu, Director at STIR Academy of Bartending & Creative Consultants.

In Food and Beverages industry, policies are the biggest challenge. “Whenever we talk about liquor, we are automatically considered as criminals. That is how the government and society looks at it,” adds Grover.

Tell us something about the brand.

We started the brand in December 2014 and it’s been almost two and a half years since it is functional. We spent almost two years on product development. After developing the product, our focus was to create a category rather than entering into a category which is already there. The potential was to differentiate our products from the established categories. So we wanted to be strongly differentiating leadership category. The green tea coolers include a combination of green tea, blended with the flavour of natural fruits, acerola and vitamin C that are available in various flavours- Peach, Green Mango, Lavender and Mint. The herb coolers combine herbs, fruit flavours, inulin, vitamins and minerals and are available in two variants- Calm and Curious. We are the first company in India to introduce a drink with inulin which improves health and also works as a food additive. We have introduced third drink as Natural caffeine drink in which we have decreased the amount of caffeine and caffeine is also extracted naturally. Green tea coolers and Herb coolers are in PET bottles. We have also introduced What !f?. This concept says the feel of bringing green tea and herbs in a PET bottle like if they could be bought in a form of drink then why not in PET bottles.

Are you retailing through Nature’s Basket only?

We’re retailing through almost 450 leading general stores of Mumbai.

What was the whole idea of coming up with this beverage thing?

I realised in 2013 that every industry in abroad is providing juices or fortified drinks but when I returned back to India in 2016, there was no market for beverages which led me to made an entry to this particular field. Before starting I researched and studied the whole market segment; I wanted to explore if somebody has started this thing in India or not!

How much you have put into to come up with this brand?

We have spent around 50 lacs to 1 crore in product development market, research, regulatory and approvals in the last two years. Sipwise is a 100 per cent subsidiary of Scientific Remedies Private Ltd. owned by my father.

How are you going to market your brand?

The idea was to bring product truth and emotional truth together. We are trying to bring health with taste factor for the consumers. We are also designing a vending machine which will offer drinks to the customers. Apart from that, we are associated with many campaigns. We’re stalking various market programs at best locations from where we could get feedbacks. In this saturated market, our focus is to be unique and that would market the product.

Who are you targeting as a customer?

What !f ? already targeted 20 to 40 age group people; somebody who is well aware, experienced or who just want to try out the new thing. For 1947 we are targeting the teenage group but probably you can also link up 20 to 30 age group people.

Where do you get all these natural ingredients and herbs?

We import a lot of our ingredients because we use ingredients which other beverage companies don’t. For example, our flavours are also imported from a special technology called rod flavours; these flavours change your palates for a longer period of time that is why we import a larger quantity of ingredients. We are the first company to introduce these flavours and production takes place in Indore.

What is the shelf life of this product?

Shelf life for 1947 is two years and other two products are 9 months.

What are your expansion plans?

We’re planning to expand in Pune, Mumbai. Then we’re looking forward to be in Delhi-NCR, Hyderabad and Chennai. But before that we want to cover at least two years of operation here in Mumbai.

Its monsoon time again! Monsoon is the perfect gateway for all to have a breather from the scorching heat. This is the perfect time for enjoyment, especially for children. It is also a time to be extra careful about infections, in particular, gastrointestinal infections. This is because scientific studies have shown that various infectious diseases, including some diarrheal diseases, exhibit a seasonal variation, peaking in the rainy season. Moreover, during the monsoon season, immunity level in people fluctuates, making them more susceptible to infections. Coupled with this, the digestive enzymes have lower activity, and the digestive system also becomes more sensitive and vulnerable to infections. Therefore, we should be extra conscious c about what we eat.

During rainy seasons, the moisture in the air increases, and along with it, various microbes tend to multiply. In particular, the fungi tend to grow and multiply profusely in this increased moisture conditions. The most common fungi that spoil food are the moulds.

Special precautions for food items

Bread and other bakery products like cakes, pastries and confectionery are particularly susceptible to spoilage by moulds. Therefore, we should not keep these food items exposed to the moist air on a stretch. . We should consume these items as soon as they are taken out of their air-tight packets. Since cakes and confectionery contain sugar, they are a rich source of nutrients for bacterial growth. This is another reason why these food items shouldn’t be kept out in the open for long. Care should also be exercised with milk & milk products, as these are susceptible to contamination and spoilage by microorganisms, particularly in the humid weather, which is common in the monsoon season. Care should be taken, not only for food items, but also for various ingredients and additives that are used for preparation of the dishes. These should be kept in hermetically sealed containers, so that they are not exposed to moisture.

Cut fruits also shouldn’t be kept out in the open during rainy season. These should ideally be consumed as soon as they are cut, to avoid any contamination with microbes. Likewise, fruit juices should also be consumed fresh and not stored for later consumption.

The storage of cooked food is very important. Prepared food should ideally be consumed hot, soon after cooking. In case of delay in consumption, , it should be quickly cooled, carefully covered and refrigerated in order to avoid microbial contamination. It is to be noted that while storing food in the refrigerator, cooked food should be stored in the upper shelves, while the raw food in the lower ones.

Storage of grains & pulses and raw vegetables should be away from moisture as much as possible. It would be a good idea to avoid buying in bulk during the monsoon season, in order to avoid problems with storage.

It must also be ensured that the kitchen, and in particular the food preparation area is kept clean and hygienic in order to avoid any chances of microbial contamination during the process of food preparation. Moreover, cooked food must be kept covered and away from raw food items that will likely be contaminated with microorganisms.

• Avoid street food

Most types of street foods are generally prepared in open air. There is a chance of contamination of food with rain water. The stalls are sometimes located near open drains, where there is chance of contamination with coliform bacteria, which can cause serious diarrheal disease. Moreover, water used for preparing street food favorites like golgappas is likely to be contaminated, and there is a chance of contracting water-borne diseases like cholera and typhoid in this way. Also, fruit juices from street vendors might be kept in the open and served later, increasing chances of contamination. Moreover, there are chances that the glasses and other items will not be clean. Consumption of Ice-lollies, Kulfi etc during the monsoon season can also lead to stomach problems arising from unhygienic conditions.

• Special precautions for drinking water

It is very important to have a well hydrated body during monsoon months. Therefore, it is essential to drink plenty of water. Drinking water should be safely consumed, since during the rainy season, chances of contamination increases manifold. It should be noted that besides microbes, ground water can be heavily contaminated with chemicals, as these leach easily into the underground water deposits. The best way to ensure safe drinking water is to filter the water, followed by boiling, before drinking.

If these simple precautions and hygienic practices are followed, it will enable you and your family to enjoy and appreciate the true beauty of monsoon season.

Coming from Nilgai family, what made you launch Cocofly?

COCOFLY is a continuation of the very same vision that has driven by us since day one. We are positive about the FMCG opportunities that India's rapidly changing consumer market offers to new entrants into the market. At Nilgai Foods we see ourselves building F&B brands for 21st century India, and COCOFLY is the latest attempt at achieving our vision. Our mission is to make premium food experiences more accessible to the wider Indian public, and we felt that a 100% natural coconut water with no added sugar and no preservatives is exactly what the Indian public is looking for right now.

How do you see the market for Cocofly and coconut water emerging in India?

The market is already estimated at 2600 crores, but this is the unorganised segment that consists of coconut vendors selling from push carts. We expect this market to grow considerably as packaged coconut water brings shelf life and portability benefits and therefore increases the footprint across the country where coconut water can be sold. We also expect packaged coconut water to eat into the fruit juices and nectars market as consumers switch to a healthier option of packaged drink. Over the next 5 years we think that the packaged coconut water market will grow to over 1000 crores from a starting point today at approximately 50 cr.

How are you marketing your product right to the customers?

Our launch in Delhi focused on our products USPs that makes COCOFLY stand out not only compared to other beverages but also when compared to competing coconut waters: we have highlights the fact that COCOFLY has no added sugar and no preservatives, which makes it the only truly guilt-free drink in the market. At Nilgai Foods we always look for ways to leverage technology to improve our effectiveness, so in addition to main stream ATL activities, we amplified the health message across social media and online publications.

You claim of having Cocofly 100 per cent natural. What is the shelf life of the product?

Without any preservatives we are able to achieve a 5 month shelf life for the product. Other coconut water brands can achieve a longer shelf life with the use of preservatives, but longevity is not the sole objective for us. We want to give our customers a beverage option that is genuinely free from anything negative. There can be no exceptions here. We are building a brand around honesty and integrity, and we want consumers to understand why are making these choices rather than giving them a shelf life that is commercially more viable but at the expense of their health.

From where did you source the coconuts?

We get our coconuts directly from farms in Tamil Nadu through a network of aggregation points. We try to package our drink as close to the source as possible, and we are always looking for ways to streamline and improve our supply chain.

Talking about packaging. How is the packaging for Cocofly done to deliver it fresh to customers?

We partnered with Tetra Pak during our development stage. Their state-of-the-art technology allows us to package the coconut water in the absence of any air so that their specialised heat treatment process kills any bacteria and packs the drink in 6 layers of protective packaging without the chance of contamination.

How are you selling Cocofly? Tell us about your presence in the market both in retail and HORECA?

We are in more than 3000 retail shops across the NCR including a few major supermarket chains such as Savemax, WH Smith and Religare Pharma. We have seen a huge amount of interest from both public and private sector institutions that are looking for healthier options but have only found drinks that contain lots of sugar. As a result it has been easy for us to activate HORECA accounts - we are in over 60 hospitals in the NCR, and sell to caterers, hotels and restaurants. We have recently started supplying COCOFLY to select army units, which we hope to build into a long term government supply contract. Cinema chains have also shown interest as they have seen a sharp decline in soft drink sales and need to look for healthier alternatives to give to their audience.

Going forward, what is the expansion plan?

Now that our launch in Delhi has beaten our expectations, we are looking at expanding into other cities especially in the north. We are looking at raising a round of funding that will go towards brand building and awareness. Over the next few years we want to be the market leader in coconut water and we hope that coconut water will rival the fruit juice market in size.

Also, when we talk about Nilgai as a whole what new is happening at Nilgai?

PICO, India's first hot sauce brand, is also expanding right now. We are expanding our range into great tasting 'daily essential' sauces that are a must-have feature of every pantry. In July we are introducing chutneys into the Mumbai market as a celebration of India's original hot sauce - the chutney. So far chutneys have been predominantly prepared at home but we are banking on the growing number of nuclear families and double income households who no longer have time to prepare simple everyday accompaniments from scratch. PICO's range of chutneys will liberate the woman of the house and give her more time to enjoy with her family. We are excited about this new phase in the PICO journey as it will open up a huge market that we previously left untapped with our original range of PICO hot sauces.

As Indians are moving towards a more healthy and friendly lifestyle they are relying more on fresh and natural products. And, I am very proud to say that in 2016 alone there are numerous brands who have entered into the segment.

Especially when we talk about coconut water segment, the market is already estimated at 2600 crores, but this is the unorganised segment that consists of coconut vendors selling from push carts. And, the industry is expecting this market to grow considerably as packaged coconut water brings shelf life and portability benefits and therefore increases the footprint across the country where coconut water can be sold.

There is an increasing demand in packaged coconut water for a few reasons:

Consumption is already high: the unorganised sector sells over a billion tender coconuts each year as a beverage to Indian consumers. Hence, it is giving a way to organised players and retail giants to enter into the segment citing the potential that the segment offers.

Food safety is major concern: With magi issue breaking headlines in India, food safety has become a major concern after that. Not only people but government is also very active in meeting the parameters attached to food safety. There is increasing awareness about hygiene and food safety, and packaged coconut water is perceived to be safer than drinking straight from a cart.

Healthy is trendy: Health has become a buzz word and the health food and drink category has seen significant growth over the last few years. Consumers no longer select drinks purely based on the taste - health has become paramount in the decision making process. Drinks without any added sugar or preservatives are extremely difficult to find in the market and there is a palpable demand for such products.

It’s all about being natural: Coconut water in itself is one of the most nourishing, nutrient rich, hydrating liquids that you can find in the natural world. As awareness grows about the goodness of coconut water for health, beauty, concentration and a host of other health benefits, the demand has started to increase. Several brands have started entering this space because they believe, as we do, that coconut water will become the biggest beverage growth story over the next few years.

Therefore, with the opportunity that the segment offers we can see some good work happening in the sector.  

After helping to lead of the most prestigious global soft drink companies like Red Bull, Coca-Cola, Ahmed Elafifi felt that he has reached the zenith of beverage industry. Though, he was respected and materially fulfilled, yet, he did not feel fully satisfied because he was simply living to work. “It was at this time that I had a much needed epiphany—desperately needed to start the next chapter of my life,” added Elafifi who started the first relaxation drink globally.

Elafifi decided to take some time out and visit the Austrian Alps to rest, reflect and consider his future. It was here, amongst the tranquility and serenity of these beautiful mountains that made him realize positivity and being in control of your own destiny is incredibly precious. From that point in time he decided to create a proposition that embodied the calm and peacefulness that this wonderful landscape exudes. “I decided to use my beverage industry expertise to establish Tranquini, a company with a philosophy that actively promotes positivity, stress-free living and a tranquil lifestyle,” added Elafifi who has brought the brand to India after successfully launching it in over 20 countries.

What made you come to India?

The market for relaxation drinks is just being created and Tranquini is the first company to establish this area. We believe this sector has tremendous potential. Tranquini was launched only in April 2015, and is already available in 29 countries across three continents and we plan to be present in 50 countries by the end of 2016. Within our global strategy, India is one of the important markets. The rapid pace at which India is developing, relaxation drink like TranQuini has a wide space and scope.

What was the reason behind launching the relaxation drink?

Tranquini has been created to offer a unique lifestyle proposition that fits with the needs of today’s consumers. The last two decades of the twentieth century were characterized by high-pace and high-stress tendencies and in recent years the need for stress relief has been recognised globally. There has been a noticeable lifestyle shift, which means that consumers are seeking products that support a balanced, active yet relaxed lifestyle. Tranquini, relaxation drink, proposition with reducing stress and anxiety relief without causing any drowsiness delivers on consumers’ desire.

How do you see the market for it? How has been the response so far?

I personally feel there is a massive scope for the relaxation drink presently. The responses from customers and consumers so far has been thrilling, beyond expectations and that is another reason why we have been successful in reaching out to 29 countries in a span of one year. Historically countries like India were practicing various relaxation and mindfulness techniques, as well as various herbal-based products.

What is your market presence? (Distribution network, retail presence)

We have started our expansion in India from the western region covering markets like Mumbai, Pune and Goa and by the second half of the year our products will be available across the country. At present, two variants of Tranquini will be available through modern retail chains, supermarkets, stand-alone self-service stores, cafes, restaurants, multiplexes, airports, clubs and high-end traditional trade.

It was in news that you have set up a manufacturing unit in India. Was it because of the soaring import taxes or sourcing the materials locally?

Tranquini has launched in India starting local production to satisfy the local demand in India and the rest of South Asia. This is its first manufacturing base outside of Austria, where Tranquini is headquartered. We believe in high potential of India and South Asia region.

Who are you targeting when it comes to attracting customers?

Tranquini is a premium relaxation beverage that can be enjoyed by everyone and is more affordable than other relaxation methods like consuming alcoholic beverages or going on relaxing vacations.

In the last two decades of the twentieth century fast-pace and high-stress tendencies have been recognised in modern lifestyle. And, in recent years the need for stress relief has been recognised globally leading to a noticeable lifestyle shift where consumers are now seeking products that support a balanced, active yet relaxed lifestyle.

Like any other country, India has a prominent culture of relaxation and mindfulness techniques; and ayurvedic herbal-based products have formed a key part of diets in the country for centuries. However, according to the Canadean consumer survey, 60 per cent of Indian consumers are now looking for a beverage that aids relaxation, 85 per cent plan to make active attempts to reduce stress and 72 per cent are looking to find new ways to relax.

Global premium relaxation drink Tranquini® which has marked its entry in South Asia by launching its products in India last month is seeing India as one of the most important beverage markets globally.

The company which was started in April 2015, is available today in 24 countries across three continents.

The entry into India supports Tranquini's global growth strategy. The company has produced Tranquini locally to satisfy the local demand in India and the rest of South Asia. This is its first manufacturing base outside of Austria, where Tranquini is headquartered.

Started by Founder and Chief Relaxation Officer, Ahmed Elafifi, to offer a unique lifestyle proposition developed in response to the increasing consumer demand for positivity and to promote relaxed lifestyle that inspires people to be positive and to allow good to happen in their lives.

Tranquini is composed of green tea extract, chamomile and lavender– natural ingredients that are scientifically proven to reduce stress and relieve anxiety– without causing drowsiness.

“Tranquini offers a strong proposition and is leading the new relaxation beverage category by appealing to a consumer need for a more relaxed and positive lifestyle. We have seen a positive response to Tranquini in the countries in which we operate and are thrilled today to announce our entry in India, which is a very important market to our business portfolio and that will significantly expand our presence in this thriving and growing marketplace,” shared Ahmed Elafifi– Founder and Chief Relaxation Officer, Tranquini.

Tranquini can be enjoyed at any time of day and is specifically recommended to balance out those little stresses that come our way daily; to enhance moments when you are already engaging in relaxation-inducing activities; and to provide mental relaxation before an important performance such as speaking in front of a large audience or before a key business meeting. Tranquini helps to promote physical relaxation after periods of high intensity and adrenaline, such as after work, a night out or adrenaline sports.

“India is a growing country dominated by youth who have a faster pace of life than ever before. The number of people who suffer from insomnia, stress and fear is constantly growing and its affect is making a large impact. Tranquini is scientifically proven to reduce stress and relieve anxiety – without causing drowsiness. We will first launch Tranquini in the western region covering markets like Mumbai, Pune & Goa and by the second half of the year our products will be available across the country,” added Ahmed Elazizi – Vice President for Middle Near East and Africa region at Tranquini GmbH and Country Director at TRANQUINI INDIA Pvt. Ltd.

At present, two variants of Tranquini will be available in India- Tranquini® Original, boasting a pleasant fruity flavour and Tranquini® Jade, a new unique flavour that contains green tea notes, both priced at Rs 95 for 300ml can.

The Tranquini products can be found in modern retail chains, supermarkets, stand-alone self-service stores, cafes, restaurants, multiplexes, airports, clubs and high-end traditional trade. 

Foodies might hate this but science has just squeezed the plate full of their favorite dishes into just a glass full of light beige color and vanilla flavored drink called SupermealX – a meal (breakfast, lunch or dinner) replacement beverage (not an energy booster) that gives you all the 30 vital nutrients required in every meal. 

When did you planned to launch SupermealX?

Ever since I graduated in 2006 I have been meddling with different ideas, whether it is real estate, dog food, blogging etc to figure out what I want to do. SupermealX is a meal replacement beverage similar to Soylent in the US, invented in 2013. In March 2013, when I heard about Soylent, I was so fascinated that I wanted to buy it since I have always been quite disciplined about what and how I eat. However I couldn’t get it, so I thought of making one of my own. This is apart from my job since last nine years at EthosData, the UK-based global virtual data provider, as even my CEO never stops me from doing the projects that I want to do. I am lucky that way. So, I love my job and also because there is a financial aspect of it which allows me to do such experiments.

What was the driving factor?

The idea gelled with my lifestyle as I was living alone, having a slow-carb diet and usually ordered food from outside as I don’t cook much and neither do I like shopping for food. While losing or gaining weight wasn’t the challenge for me, but you don’t know how the food is prepared and neither can you ask (from where you are ordering the food) to prepare it the way you would like for e.g. less oily and spicy. Even if you order healthy food like Chicken or a vegetarian preparation, you still don’t know how it was made as often it has oil dripping from it etc. It is still unhealthy and gets very monotonous after a certain time and above all is quite expensive for those living alone like me. So, you don’t know what different essential nutrients and their quantities are there in your meal. Even if you know, every meal doesn’t have the entire above 30 essential ingredients (14 vitamins, 15 minerals and few macro nutrients) for your body. 

How SupermealX is meeting the nutritional intact of the body? 

SupermealX is a nutritional insurance which means that you are making sure that your body gets everything it requires as per science. During the first month of having SupermealX, I was a guinea pig. So, I had full body check including blood test before and after the month. When I compared the two results I was surprised to see that my cholesterol was normal after one month.

What is the ideal time to have SupermealX?

Anyone can have SupermealX anytime as per his/her lifestyle. For e.g. it is my breakfast and lunch from Monday to Friday. Though there is no such ideal time or way to consume it, having it in breakfast can be a great start to the day for those who skip or prefer light breakfast, as one SupermealX works for up to four hours and satisfies at least 25 percent of your daily nutritional intake.

How do you see this trend picking up in India?

We are creating the market for such a product since it is first of its kind in India, so, the challenge is to educate people about it. This is unlike in US where people know about Soylent and hence the adoption rate of such a product is high. Most of our customers are entrepreneurs, executives, lawyers who have long working hours or people who usually have irregular eating habits.

What about your presence and expansion plans?

While we are already selling through our website, we might be available at retail stores in Delhi and Mumbai from next month and a half. We are working with our team of scientists to launch two flavors by December this year. We manufacture it in Himachal Pradesh, but import most of the ingredients as they are not available in India. This is why its price is slightly on the higher side, but we want to bring down the cost.

Restaurant industry is much larger than the film industry but is less visible due to lack of quality infrastructure, shortage of adequate skilled manpower and proper license and government body which has been hampering the growth of the industry for years now.

To discuss and find a solution to overcome the prevailing key issues in the development of Restaurant industry, Ritu Marya, Editor-in-Chief, Restaurant India, a part of Franchise India Media together with industry panellists including Zorawar Kalra, MD, Massive Restaurants; Rahul Kumar, CEO, Red Mango India; Rahul Singh, Founder & CEO, The Beer Cafe; Chetan Arora, DA, North and West, Subway India and Devendra Chawla, Ceo, Food Bazaar, Future Group joined hands at the conference held at FICCI to bring the best in the food industry partnering with government bodies to unlock the growth potential in this business. 

Industry Overview Food and Beverages industry which is growing phenomenally at a CAGR of 23-24 per cent is one of the fastest growing sectors in India. Highly dominated by the unorganised segment which constitutes over 60 per cent of the total industry, the organised, mainly the standalone players have lots of opportunities to expand their businesses in the country.

Food and beverages sector is one of the vibrant sectors which has seen unprecedented growth in the last five years. Presently, the market has a size of Rs 2, 04,438 crore which is expected to reach Rs 3,80,000 by 2017. However, despite tremendous growth in the sector, both national and global restaurants and food brands have not optimally penetrated the Indian market so far.

Dominated by the QSR and casual dining chains, segments like fine dining, cafes, bars and beverages chain have found favour with the consumer who now prefers to eat 5-6 times a week which was earlier 2-3 times a week. Not only this, during the last one year, the industry has seen many innovations and investments happening in the industry with the emergence of tech-food players in the country and with this, today the industry is at the forefront of attracting the investors.

Commenting on the same, Devendra Chawla said, “India is a very large market and we find that there is a very large untapped opportunity in the Tier II and III towns for quality eating out chains.”

Meanwhile, food expenditure today has larger portion of the consumers’ total consumption basket and with a population of more young generations, eating out is believed to grow as it has become an occasion in itself which was earlier restricted to an occasion-driven activity. And with global and youth centric chains like Starbucks, CCD, Social, Domino’s, Pizza Hut, Farzi Cafe, Out Of the Box opening at cool locations like Hauz Khas Village, Cyber Hub, Connaught Place and Epicuria Mall amongst others,  food industry is surely going to rule the Indian industry leaving behind most celebrated industries like Film and Cinema.

“We are the fastest growing industry in India where more than 50 per cent of population is less than the age of 25 years with high spending power and where 50 per cent of the spend on total expenditure goes on food as compared to developed countries where people only spend 30 per cent on food,” shared Zorawar Kalra. 

Major Challenges

Despite all these growth in the last few years, food industry is lagging behind due to some of the major issues like high real estate costs, the large number of licenses required to operate in the sector and a plethora of taxes, which is still a roadblock in the growth of the industry.

And to lead the foundation of growth within the industry, the new government is bringing new laws and policies; the report by FICCI- Grant Thornton also states that the government’s intervention in creating good infrastructure and developing skilled manpower would help boost the growth of the sector. It furthermore proposes that real estate costs can be reduced by lobbying with real estate developers to develop a better formula of rent sharing and developing innovative models for rent.

“The government recognises the F&B sector’s great potential for growth and job creation. Hence, it has been identified as a priority sector in the National Manufacturing Policy and is also amongst the top 25 priority sectors, which are being promoted across the globe to attract investments and as ‘Make in India’ initiative, we are looking at growth in this sector and the growth can happen only if we can get more and more investments coming from local as well as global markets,” said Atul Chaturvedi, Joint Secretary, DIPP.

Meanwhile, according to the industry people simplified licensing requirements with a single-window clearance approach and rationalisation of taxes levied on the restaurant industry are a few solutions proposed in the report to effectively tackle licensing and taxation issues, faced by the industry.

“Despite the fact that we are India’s one of the largest alco-beverage chain, we have only 11 per cent sale of beer in India which is approximately 70 per cent globally and this is due to the law of this country as every state for us is a different country,” pointed Rahul Singh of the Beer Cafe.

Adding on the same line, Rahul Kumar shared, “We are a global yogurt brand and we import most of the raw materials from the US market, the export law is too stringent for us that sometimes the delivery of the end product is delayed by the same.”

Unlocking the growth potential

Despite all these challenges, today the maximum growth being witnessed is still in the standalone restaurant space where local taste along with uniqueness of concept is the key deciding factor.

Also, amongst the various segments within the restaurant sector, Quick Service Restaurants and Casual Dining Restaurants constitute the largest categories – combined they constitute more than 77 per cent of the overall market. Café segment emerges as the third category with the market size around INR 25,000 crore and is growing at 10 per cent year on year. Though the Fine Dine market constitutes only 3 per cent of the market, the segment is witnessing a renewed interest and a large number of multinational chains are entering the market.

“The food industry has evolved over the years and India needs to be prepared for the new importance that would be given to the sector. He added that like the developed economies, India too had begun indulging in lavish food and experimenting with new cuisines and it’s a new beginning for the sector,” added Chawla.

Meanwhile, India has a greater potential of global food brands who are one of the major contributors driving the growth of eating-out trend in the country.

Commenting on the same, Piyush Patodia, Executive Director, Grant Thornton India LLP, pointed, “Foreign brands need to ensure that although they see India as a large opportunity, there needs to be an appetite for risk taking. India is a difficult terrain to operate, with multiple taxes, complex licensing and high operating costs. In addition, tastes and preferences vary significantly based on the location within India. With correct planning and customisations, companies can see explosive growth of their concept in India.”

And bridging the gap between the industry and the government, Shilpa Gupta of FICCI asked the industry panellists to come together and participate in the government’s initiative to create more skilled labours and job opportunity, and inviting them to set a separate body for restaurant growth in the country.

However, with lots of developments taking place in the sector, where industry and the government have come together, food industry as a whole is looking at a larger share of its pie in the Indian economy.

Indian’s have always been a lover of food and drinks. They are not only restricted to their regional and local tastes, but have gone beyond their geographical borders to try something new and unique. Today, the customers are well travelled across the world and are open to experimenting the new and trendy cuisine.

Not only this, over the years, the local masses have grown an appetite for a wide range of beverages, whether it is alcohol, coffee, a mix of the traditional tea, world class beer or the cocktails and mocktails. Witnessing a tremendous change in the eating and drinking habits of the consumers, the local as well as international players in the beverage segment are introducing new and trendy drinks to give consumers a taste of the world class beverage.

Beverages-based format

Most people in India are exposed to a variety of beverages like home made milkshakes, sharbats, chocolate drinks, etc from an early age. However, beverages are themselves only a ‘sidekick’ and best served as fillers in-between meals. 

Over the years, beverages have gained prominence in the food service market by setting up a new, hybrid or a theme based format in the beverage segment. Microbreweries, tea lounges, pubs and bars, entertainment and beer cafes have opened doors in the country. Indianisation and localisation is the current buzzword in the food services market, with players modifying their core offerings to suit the consumer’s palate. For instance, The Beer Café has introduced the concept of Pour Your Own Beer in the market, which has succeeded in India. The format is in sharp contrast with the international markets.

We have evolved from our coffee drinking habits to more enhanced, customised cappuccino or espresso coffees. Now peopleare discovering newer tastes and today there are 90 plus varieties of different tasted beer available in the world. So, people now are opening up to newer beer experiences and drinks,” says Ankur Jain, CEO, Cerena Beverages Pvt Ltd.

At the same time, Witlinger, which is first of a kind indigenous beer launched in India by KaamaImpex has its own customer base. “Brewed in England with the finest ingredients, Witlinger offers fresh and easy drinking. It has fruity flavours making it easy to drink beer any time of the day. Beer drinking is changing in India drastically and consumers are trying different flavours and style of beers. The Kaama’s focus has always been beers and we are overwhelmed with the outstanding response Witlinger has received” says, Anuj Kushwah.

Brewing the finest beer

The beer drinking in India is increasing over the last two years. Players like Crafts Beer and The Beer Cafe have come up with new formats and ranges of beer in the country. According to the experts, beer is the third most widely taken drink after tea and coffee globally. They believe that ‘Beer is an all day beverage’ when compared with wine or other aerated drinks.

Craft Beer, launched by Ankur Jain, can be defined as specialty beer that necessarily involves a traditional brewing process using natural ingredients. The evolution of craft beer in India goes hand in hand with the food evolution processes.

For example, we have evolved from the traditional tea or coffee drinking habits to more evolved tea drinking session with customisation of tea and cappuccino or espresso coffees.

On the same line, Craft Beer has also evolved over the choice of either taking it over the food or an experiment to follow the crowd which is shifting from modernisation to going the traditional format.

On the other hand, The Beer Café, which has marketed itself very well in the country has outpaced in the beer segment. Earlier, this segment was dominated by major players like Kingfisher, Heineken and Corona, but now people are going beyond this experimenting new tastes and processes.

There has been a great shift from hard liquor to beer. The beer industry saw a major growth in the year 2013 and is still growing at the rate of 8 per cent, which shows that the preference of beer over any other alcohol is more. Usually Indians prefer whiskey that is stronger and can give them an instant buzz, but due to rapid globalization young corporate and well-travelled consumers prefer relaxing and unwinding with a pint rather than a peg,” shares Rahul Singh, Founder and CEO, The Beer Cafe.

Say cheers with wine

Wine consumption has gone through a paradigm shift due to globally travelled people and wide adoption of western culture. Today, serving and drinking wine has become a part of the culture. Seeing this growth, not only bars and pubs, but restaurants have also started serving wine with food.

According to a research by Technopak, it is estimated that wine in India has penetrated only 1-2 million individuals, resulting in a very low per capita consumption at the national level. The global per capita consumption of wine is estimated at 4 litre per annum, while the Indian figure stands at 4.6 millilitres. According to industry estimates, the per capita consumption has gone up and is estimated to be 9-10 millilitres per annum.

Today, the beverage trend is growing and about 10-15 per cent people prefers wine over a meal,” says Ashish Kapur, Co-Founder and MD, Yo! China.

The major factor that is letting this industry grow is the young age average customer who is helping drive change in business, out of the home eating culture and drinking habit and the urbanisation of people.

Not limiting here, the consumption pattern in India has changed. Popular choices have gone beyond the simple drink preferences and wine consumption is on high today. Experts say people are trying the alcoholic drink that is not only made in India, but has an internationally tag attached. For example, Indian Made Foreign Liquor (IMFL) is in high demand by the local people.

Not only this, there are certain themes that restaurants and bars serving wine are adopting. The variety of wines offered by restaurants and the type of menus offering wine depends on the complexity of the restaurant operations with reference to their price point, cuisine and style of service. For example, a fine dining restaurant will have a much more defined wine menu, while a casual dining will have a smaller menu.

The thumb rule is that any restaurant which offers wines should offer white, red, rose and sparkling wine. A casual restaurant or a QSR might only offer red and white wines as it depends on the cuisine they serve,” believes Manish Kumar Baheyti, Owner, Haute Services Pvt Ltd.

Liquor Policies

A restaurant and bar serving wine have to go through certain legalities involved. Tedious laws and procedures make Indian beer and wine market very complicated. State taxes make the segment more expensive than normal beverages as per volume.

Talking about beer, overall beer constitutes just about 5 per cent of the total alcohol consumed in the country. However, the market is expected to reach $9 billion by 2016. A lot of microbreweries are coming up in the market and the Delhi government recently announced that malls and pubs could have breweries on location.

In terms of consumers, they prefer the stronger beer varieties. Globally, it is the opposite where most of the beer consumed is mild. For running a bar and a pub, the license requires spending approximately Rs 15,000 to Rs 20, 000 and is approved within a week to a month depending on the legalities that the bar and a restaurant goes through.

New in the race

Seeking lot of opportunity in the beverage segment, Pause Wine which is known for serving world class wine has introduced ‘Indian Nectar’ a type of wine especially designed for the festive season of Christmas and New Year.

On the other hand, Witlinger, India’s first indigenous beer is launched in market by tying up with The Beer Cafe to serve the speciality beer at its Delhi-NCE and Maharashtra outlet.

Thus, we can say that the consumption of beverages in India is changing with people’s choice over a particular beverage. Today, the trend has become beverages and food rather than food and beverages.