Ever wondered how whisky industry is growing in India? With the brands innovating and evolving, even the cocktail bars are innovating their cocktails using whisky. The innovations in cask finishing, sustainable production, and premiumization is shaping its future. In India, the market is experiencing significant growth, driven by rising disposable incomes, evolving consumer preferences, and a shift towards craft and luxury spirits. India remains one of the largest whisky-consuming nations, the demand for high-quality, homegrown premium brands are increasing.
The Market:
The market size of whisky industry has reached USD 2,389 Million in 2024 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.3% to reach USD 4,521 Million by 2033.
In terms of volume, the Indian whiskey market witnessed sales of approx. 260.07 million cases in 2024 and is projected to grow significantly with a CAGR of 7.6% to reach 502.80 million cases by 2034. The industry is also witnessing a shift towards premiumization, with consumers trading up to high-end premium and super-premium whiskey categories.
According to the Scotch Whisky Association, Scotch whisky exports to India reached 192 million bottles in 2024, surpassing France as the world's leading market for Scotch whisky by volume.
Trends and innovations in the whisky industry:
The whisky industry is undergoing significant global transformations. This is driven by changing consumer preferences and innovative production methods. Some of the key trends include:
1. Premiumization: Consumers are seeking unique, high-quality whisky experiences, driving demand for premium whiskeys globally.
2. Ready-to-Drink Whiskies: Convenient, and easy to carry RTD whiskies are gaining popularity, especially among younger consumers.
3. Whiskey Cocktails: Whisky is becoming a staple in mixology, with high-end brands being used in craft cocktails across.
4. Distillery Tourism: Immersive experiences, such as distillery tours and whisky tastings, are attracting enthusiasts and connoisseurs worldwide to experience excellence of whisky making.
“Indian brands are experimenting with flavour by switching to locally sourced grains like six-row Indian barley, instead of using the traditional two-row barley. Drinks like Hillfort are infused with indigenous botanicals and spices like cinnamon and cardamom. Such innovations help Indian whisky brands create a unique flavour profile. Additionally, weaving the narrative to India’s rich heritage of culture and spices is another strategy to stand out at a global stage,” notes Tushar Bhandari, Whole Time Director, Associated Alcohols & Breweries Ltd.
Bar Innovations:
Mixologists are experimenting with whisky-based cocktails, incorporating Indian spices, fruits, and herbs to create unique flavor profiles. They are also introducing methods like smoke infusion and fat washing to add complexity to whisky-based cocktails.
Denzil Franklin, Head Mixologist, Sixteen33, Mumbai shares, “The Sherly village blend encapsulates the village’s essence in a glass—an elegant balance of traditional ingredients with a modern, creative twist. Crafted with millet-infused whiskey, this cocktail brings a touch of earthy finesse, enhanced by the delicate floral notes of chamomile shrub. The citrus adds a refreshing zing, while the green apple foam crowns the drink with a crisp, evoking the simplicity and freshness of Sherly’s natural surroundings. We also have a cool Negroni called the ‘Nut’ which is a mix of Peanut Butter Bourbon Whisky, Banana Campari Negroni that we serve up.”
The Foreseen Challenges:
Indian whisky producers face several challenges that impact their operations, profitability, and growth. Mokksh Sani, The Founder of Living Liquidz and Co-Founder of The Glenwalk mentions, “Challenges such as High Excise Duties and Taxes, Regulatory Framework, different RTM across all the markets delay or slow down product expansions. In order to overcome the same, we need to engage persistently with government agencies and industry associations to advocate for policy reforms that reduce excise duties, simplify regulations, and promote a more favorable business environment. W.r.t to the consumer, it is an ever-evolving exercise to understand new and trending consumer preferences and maintain our relevance.”
Varna Bhat, Founder of Blisswater Industries, says, "Indian whisky is no longer just about volume; it’s about quality, craftsmanship, and storytelling. With Yaksha, we have brought a 100% natural wood-aged whisky that stands apart globally. The challenge lies in navigating regulations and changing perceptions, but the opportunity to redefine India’s whisky narrative is immense. Yaksha Whisky and Yaksha Bluemoon Whisky, crafted with precision and a commitment to purity, embody this new era of Indian whisky.”
Nikhil Agarwal, Founder, All Things Nice, Mumbai said, “Globally, we do see the trend of low alcohol and or even no alcohol spirits gaining traction, which of course is a threat to any spirit brand or category. And more on the home front in India, I think our state regulations, when it comes to the rules on what the excise duties are, what the VAT policy is, and definitely on a central level when it comes to customs duty, which is far too high, those are barriers that we face for sure.”
Overcoming Challenges:
Overcoming these hurdles requires strategic pricing, strong brand positioning, and leveraging India’s unique whisky heritage. Indian whisky brands are expanding their presence in international markets, particularly in the U.S. and UK, competing with global players by offering distinct flavor profiles and indigenous craftsmanship.
The Future:
The future of the whisky industry in India looks promising, with a growing inclination toward premium spirits, innovation in aging techniques, and a focus on sustainability. As consumers seek more refined experiences, Indian whisky is set to carve a strong niche both domestically and globally, redefining perceptions and positioning itself as a serious contender in the premium spirits segment. The industry is expected to benefit from the growing middle class and rising disposable incomes, driving demand for premium and luxury alcoholic beverages.
Rum has long been the heart of many tropical cocktails, known for its sweet and rich flavor that perfectly complements fruity mixes. But what if rum isn’t your choice? Maybe you’re looking to try something different, or perhaps rum is not available in your bar cabinet. Whether you’re hosting a summer house party in Mumbai or planning a beach-themed brunch in Goa, you don’t need rum to capture that tropical vibe.
These drinks use other popular spirits like tequila, vodka, gin, and whiskey, blending beautifully with tropical flavors like pineapple, mango, coconut, and tamarind. Each recipe is simple to prepare at home, requiring just a few fresh ingredients and basic bartending tools. These cocktails are ideal for India’s warm climate, offering light, fruity, and cooling options to beat the heat. Whether you prefer something creamy, citrusy, or spicy, there’s a rum-free tropical drink waiting for you to try. Cheers to new tastes and creative mixing!
Read more: How to Pair Beer with Indian Food: A Desi Guide to Perfect Pints
Not everyone enjoys rum. Some people avoid rum for health reasons, and sometimes it’s just not available in your bar cabinet. Fortunately, tropical flavors like pineapple, coconut, and mango aren’t limited to rum-based drinks. These fresh, vibrant tastes pair wonderfully with other spirits like vodka, gin, tequila, and even whiskey. Each spirit brings its own unique character, allowing you to enjoy tropical cocktails with a new twist. Whether you prefer something light and refreshing or bold and spicy, there’s a rum-free option to suit your taste. Let’s explore eight delicious tropical cocktails that use different spirits while still capturing that island vibe.
Know more: Best Low-Calorie Alcohol Brands for Health-Conscious Drinkers
In this article, we’ll show you 8 fun and refreshing tropical cocktails you can make without using rum. These recipes are perfect for Indian summers and easy to prepare at home.
The Pineapple Tequila Sunrise is a vibrant, fruity cocktail that’s both refreshing and eye-catching. To make it, add 60 ml tequila, 120 ml pineapple juice, and 15 ml lime juice into a shaker filled with ice. Shake it well to blend the flavours, then pour the mix into a tall glass. Slowly add 10 ml grenadine over the top—it will gently settle at the bottom, creating a beautiful gradient of colours. This cocktail offers a sweet, citrusy taste with a bold tropical punch, making it a fun twist on the classic Tequila Sunrise. It’s perfect for warm evenings, beach-themed parties, or anytime you want a splash of colour and flavour in your drink. Great for impressing guests too.
The Coconut Vodka Cooler is a light, smooth drink that feels like a mini tropical escape. To make it, combine 60 ml vodka, 90 ml coconut water, and 30 ml coconut cream in a shaker. Shake it well until the mix is chilled and creamy. Pour it over a glass filled with crushed ice for an instantly refreshing experience. The coconut water keeps it hydrating, while the cream adds a silky texture. This cocktail is ideal for hot, humid Indian afternoons when you need something cooling yet slightly indulgent. Its tropical taste makes it perfect for sipping by the pool or serving at casual get-togethers. Simple, satisfying, and naturally sweet—it’s summer in a glass without being too heavy.
The Mango Gin Fizz is a tropical delight that brings together the richness of mango with the crispness of gin. To prepare, shake 45 ml gin, 60 ml mango pulp, and 15 ml lime juice with ice until well mixed. Strain the blend into a glass filled with fresh ice, then top it off with 90 ml soda. Stir gently to combine without losing the fizz. This cocktail balances fruity sweetness with a refreshing sparkle, making it ideal for warm Indian evenings. Mango, often called the king of fruits in India, shines in this drink with its bold, juicy flavour. It’s the perfect pick for summer gatherings, brunches, or anytime you want a fruity cocktail with a refreshing kick.
The Tamarind Whiskey Punch is a bold, desi-style cocktail packed with tangy, spicy, and earthy flavours. To make it, shake 45 ml whiskey, 20 ml tamarind pulp, 10 ml jaggery syrup, and a dash of black salt with ice until well chilled. Pour the mix into a glass and garnish with a slice of tamarind for that authentic touch. The tamarind adds a sharp tang, while the jaggery syrup brings in natural sweetness with depth. The black salt ties it all together with a spicy kick. This drink is perfect for those who love strong Indian flavours in their glass. It’s unique, punchy, and a great conversation starter at house parties or weekend gatherings with friends.
The Passionfruit Caipiroska is a zesty, tropical cocktail that’s perfect for relaxed sundowners. Start by scooping out the pulp of one ripe passionfruit into a glass. Add 1 teaspoon of sugar and muddle gently to release the juices. Pour in 60 ml vodka and 15 ml lime juice, then fill the glass with crushed ice. Stir everything together until well mixed and chilled. The drink bursts with juicy, tangy notes from the passionfruit, balanced by the sharpness of lime and the smoothness of vodka. It’s fresh, fun, and full of tropical flair—ideal for Indian summers or beach-style evenings. Light yet flavourful, this cocktail is sure to stand out with its vibrant taste and pulpy texture.
The Watermelon Basil Vodka Smash is a sweet, refreshing cocktail with a burst of fresh flavours. To make it, add 100 grams of watermelon cubes and a few fresh basil leaves into a shaker. Muddle gently to release the juice and herbal aroma. Pour in 60 ml vodka, add ice, and shake well. Strain the mix into a glass and garnish with a lime wedge for an extra zing. The juicy watermelon offers natural sweetness, while basil adds a cooling, aromatic twist. It’s light, vibrant, and perfect for Indian summers when watermelon is in season. This cocktail is easy to make, visually appealing, and a great choice for garden parties or laid-back evenings with friends and family.
The Lychee & Elderflower Martini is a light, floral cocktail that’s perfect for elegant evenings. To prepare, add 45 ml of gin or vodka, 30 ml lychee juice, and 10 ml elderflower syrup into a shaker filled with ice. Shake well until the mix is chilled and smooth. Strain into a martini glass for a crisp, clean finish. The delicate sweetness of lychee pairs beautifully with the soft floral notes of elderflower, creating a drink that’s both refreshing and sophisticated. It’s ideal for cocktail nights, festive dinners, or any time you want to serve something a little fancy. This drink feels indulgent but is incredibly easy to make, making it a go-to option for classy gatherings with minimal effort.
The Cucumber Melon Margarita is a cool and creative twist on the classic margarita, perfect for hot and dry summer evenings. To make it, combine 45 ml tequila, 60 ml fresh muskmelon juice, 15 ml lime juice, and a few cucumber slices in a shaker with ice. Shake well until chilled and full of flavour. Strain into a chilled glass for a crisp, refreshing drink. The muskmelon adds a sweet, juicy base, while cucumber brings in a soothing freshness. The lime juice cuts through with a tangy brightness that balances everything perfectly. This cocktail is hydrating, flavourful, and ideal for outdoor gatherings or relaxing at home. It’s a unique take that feels both familiar and exciting in every sip.
Cocktails are all about flavour balance. And tropical flavours don’t belong to rum alone.
Fruits like pineapple, mango, passionfruit, and lychee work beautifully with:
These drinks can be easily made at home with locally available ingredients.
Tropical cocktails don’t always need rum to deliver that beachy vibe. With these 8 refreshing recipes, you can bring island flavours into your home using tequila, vodka, gin, or whiskey. Whether you're lounging on a Mumbai balcony, relaxing on a Delhi rooftop, or soaking up the sun in a Goa beach shack, these cocktails offer something fun, fruity, and flavorful. From juicy mango and muskmelon mixes to floral lychee martinis and tangy tamarind punches, there’s a drink here for every mood and moment. Each one is easy to make, full of tropical charm, and crafted to keep things light and exciting. So go ahead—try one, or try them all. And don’t forget to toast to mixing things up beyond the usual rum routine.
Vodka is always considered as the spirit of cocktails and it creates the mood of parties, be it house-party or cocktail party. With the tremendous growth in the industry, the flavored vodkas continue to capture the younger demographics seeking unique and versatile drink options. The growing popularity of ready-to-drink (RTD) cocktails fuels up vodka sales by 32% of spirits volume and flavored vodka accounts for 21% of all vodka sold.
The Market Size
The global vodka market is expected to grow steadily, with India emerging as a key market due to increasing disposable income and evolving consumer preferences. The premium vodka segment in India is witnessing double-digit growth, driven by a young demographic and the rising cocktail culture. With international and homegrown brands expanding their presence, the Indian vodka industry is set for substantial growth.
The growth of vodka industry from 2023 and 2033 is predicted to occur at a CAGR of 5.5%. By 2033, the size of the global vodka market is anticipated to reach USD 68.25 billion.
New Trends and Innovations
Today’s vodka drinkers seek more than just a spirit—they want an experience. The vodka industry is witnessing a shift towards premiumization, sustainability, and unique flavour infusions. Consumers are gravitating towards craft and ultra-premium vodkas with organic ingredients and eco-friendly production methods. Flavoured vodka infused with botanicals, tropical fruits, and spices are gaining popularity.
Restaurant Collaborations
Vodka in India is evolving from a high-energy club drink to a refined, all-occasion spirit. Brands often collaborate with bars to promote themselves in this fast-paced segment and its easier way to grab all the attention from the consumers and to understand about what they need.
“At Lucid, we actively collaborate with restaurants by curating signature cocktails, hosting mixology events, and providing brand visibility through co-branded experiences. Our goal is to make quality vodka more accessible, enjoyable, and integrated into India’s evolving drinking culture. As a homegrown brand, we are at the forefront of this shift, redefining how vodka is perceived and consumed,” explained Mirat Rajguru, Founder & Director, Gradient Beverages.
Bar Innovations
Cocktails have always been vodka’s heartland and restaurants have been innovating a lot in their bar menu.
Commenting on the bar innovations, Pramod Desai, Mixologist, Baliboo said, “With the rise of at-home cocktail-making, more and more people gravitate towards vodka, as it’s a familiar and popular spirit base for drinks. We see that the famed Espresso Martini retains its popularity and is set to continue growing. Tropical flavors alongside light, fruity and refreshing ones are one of the trends.”
Mixologists are elevating vodka cocktails with innovative techniques such as fat-washing, barrel-aging, and clarified milk punches. “House-made infusions, smoke elements, and molecular mixology are redefining classic vodka cocktails, offering consumers a more immersive drinking experience. These innovations enhance vodka’s versatility, making it a favourite among bartenders and cocktail enthusiasts alike,” noted Kashyap Salla, Co-Founder, Zyto.
The Challenges Faced
Key challenges include high taxation, stringent advertising regulations, and competition from whiskey, gin, and mezcals. Kashyap shares, “Overcoming these requires strong brand positioning, experiential marketing, and leveraging digital platforms for consumer engagement. Storytelling around provenance, sustainability, and unique distillation techniques can also help brands differentiate themselves.”
While Nikhil Agarwal, Founder, All Things Nice said, “The challenges for Vodka for those brands that are already in the market that are big brands, are far less compared to new brands wanting to enter the Indian market. You need a lot of marketing ammunition in terms of spends to be able to create a brand in India. For example, the big boys, big brands like Grey Goose, Kettle One, Absolut, etc. are very, very strong. In order for Vodka brands that want to enter the Indian market and want to make a name for them, they will have to invest heavily into the market. Otherwise, they're not going to be able to make a name for themselves. The main factor is high custom duties, very high excise and VAT, and of course, each state having its own labor registration laws, rules and policies, which makes it quite difficult.”
The Future
The future of vodka in India is promising, with increasing demand for high-quality, mixology-friendly spirits. The shift towards home consumption, the rise of cocktail culture, and innovations in vodka-based RTDs will shape the market. There can be a rise of high quality craft Indian vodka brands in the market. Additionally, bars and lounges will continue to drive premium vodka consumption, encouraging brands to invest in on-trade experience which makes us realize that the industry is all set to boom with a higher growth rate.
These days, there is a surge in home-grown brands—from beauty and fashion to food and beverages. This shift has given rise to a strong demand for locally crafted products that resonate with Indian tastes and preferences. They are gaining both domestic loyalty and international recognition. Driven by shifting consumer tastes, rising disposable incomes, and a growing respect of luxury and artisan beverages, domestic alcohol businesses in India have been remarkably flourishing in recent years. Initiatives like "Atmanirbhar Bharat" and the "Vocal for Local" definitely contribute to it. So, what is the market size?
The Indian alcohol beverage market was estimated to be worth $52.4 billion as of September 2024, with a large share of the market being accounted for by domestic brands. By 2028, the alcohol market in India is anticipated to expand at a compound annual growth rate (CAGR) of 6.8%.
What’s Trending
The alcohol industry is seeing new trends, such as the rise of premium and craft beverages, flavoured alcohol, and eco-friendly packaging. More brands are using local ingredients and experimenting with unique flavours to attract customers.
“At Medusa beverages we are also conscious on the ingredients that go into our beer, and we are one of the few brands to disclose the exact percentage of alcohol in our beer which has now become a trend,” shares Gaurav Sehgal, Head of Marketing, Medusa Beverages.
● Premiumization & Unique Ingredients: Consumers now seek high-quality, flavorful brews that offer more than just a drink—they want an experience. Use of saffron, ginger, turmeric, and peppercorn in its craft beers reflects this shift.
● Low-ABV & Sessionable: The rise of lighter, all-day drinkable alcohol is evident for consumer preferences.
● Experimental Flavors & Indian-Inspired Brewing: Use of Flavours with zesty lemon rind, ginger, turmeric, and peppercorn, caters to consumers looking for bold yet refreshing flavors.
● Global Expansion: Homegrown alcohol brands are becoming a great player in international markets.
Shantanu Upadhyay, Co-Founder & CEO, Kati Patang notes, "Our beers are crafted for a new generation of drinkers—those who want complexity, quality, and Indian flavors. The industry is shifting, and Kati Patang is at the forefront of this evolution. India needs to tax alcohol by ABV, not volume. Consumers want to ‘drink less but drink better,’ yet our policies push them toward stronger spirits instead of premium craft beer."
"To stay ahead, we leverage data-driven marketing, collaborate with influencers, and expand strategically across states. Our focus remains on affordability without compromising quality. Strong branding, tech-driven personalization, and community-building ensure we reach the right audience in India’s competitive beer market," adds Tarun Bhargava, Co-Founder & CEO, Proost.
The Foreseen Challenges
● Excessive Taxation: Beer is taxed 8-10x more than spirits, despite its lower alcohol content.
● Regulatory Hurdles: State-specific excise duties and brand registration fees make craft beer costlier than necessary.
● Consumer Education: While craft beer is growing, many consumers still default to mainstream lagers. It can be tackled with tasting events, digital storytelling, and premium brand positioning.
However, the industry faces challenges like different state regulations, high taxes among others. While big cities remain key markets, smaller towns are also becoming important as more people there start exploring new products.
GopiChand Cherukuri, Founder, Indian Craft Brewery commented, ‘Bangalore is a hotbed for craft beer innovation. We're seeing experimentation with local ingredients like millet and growing interest in barrel-aged and sour beers. Sustainability is also gaining traction. However, complex regulations and rising raw material costs (like a 20% increase in barley prices) are challenges.”
He adds, “Recently, you might have noticed the no. of outlets got shutdown in Koramangala, Bangalore due to high rental costs. To overcome these, we focus on efficiency and local partnerships. The market is becoming more inclusive, with a growing number of women consumers, now around 25% in urban areas.”
Right Audience in the Competitive Market
In a crowded market where consumer preferences are evolving rapidly, brands must do more than just sell a product—they must create an ecosystem of experiences, storytelling, and cultural relevance.
Brands use digital marketing, social media, and influencer collaborations to reach the right audience. They also partner with bars, restaurants, and retail stores to make their products more visible. Sponsoring events, running promotions, and engaging with customers through interactive experiences help brands build loyalty and stand out in a competitive market.
“The brand’s strategic distribution ensures that its brews are available in India’s top bars, premium retail outlets, and select international markets, positioning Kati Patang as a globally competitive Indian craft beer. However, true consumer connection goes beyond availability—it’s about engagement. Kati Patang achieves this through experiential marketing, with Kati Patang Trial Room serving as its flagship initiative, creating a space where subcultures, creativity, and craft beer collide. This immersive approach fosters deeper and more meaningful connections, ensuring the brand remains memorable and relevant to its audience,” notes Shantanu.
Differential Pricing
The pricing of the products differ from state to state because of the changing government policies.
Gaurav adds, “Medusa Beverages is available in multiple states across India in liquor stores, bars, and other retail outlets. At present we are in seven States including Delhi, Punjab, Himachal, Chandigarh, UP, Uttarakhand, and Chhattisgarh. However, pricing varies because each state has different tax and excise policies. Some states impose higher taxes, leading to different prices across locations.”
“Kati Patang is available in select states across India, with pricing variations reflecting the diverse excise duties, taxation policies, and regulatory frameworks in each region,” mentions Shantanu.
Government Regulations to Follow
Government regulations in the alcohol industry keep changing. Recently, stricter rules on labeling and packaging have been introduced. Brands must follow these rules carefully to avoid legal issues and continue expanding. As policies evolve, companies need to stay updated and ensure compliance to operate smoothly in different states. Few other rules are:
● Aligning Taxation with Global Standards – Taxing alcohol by ABV instead of volume would make more affordable.
● Introducing a Nationwide GST – This would eliminate state-by-state tax variations and make pricing more competitive.
● Allowing Online Sales – Current restrictions prevent from reaching wider audiences, despite technological safeguards.
“Another key area of focus for the government is sustainability. Many states are encouraging breweries and beverage manufacturers to adopt environmentally friendly practices, such as sustainable packaging, water conservation in brewing processes, and reducing the carbon footprint in logistics. At BeeYoung, we are committed to sustainable brewing and continuously explore ways to make our production process more eco-friendly,” pointed Abhinav Jindal, CEO of Kimaya Himalayan Beverages (BeeYoung Beer and BeeYoung Brewgarden).
Highlighting further, he said, “Changes in retail and distribution policies have also impacted the industry. Some states are revising their excise laws to streamline the procurement process for modern trade channels and allow greater flexibility in on-premises sales. Keeping pace with these regulatory developments is crucial, and we actively work with industry bodies and policymakers to ensure compliance while also advocating for reforms that support the growth of homegrown craft beer brands.”
The Future
The future of home-grown alcohol brands looks bright. Consumers are willing to spend more on high-quality drinks, and brands are focusing on offering new experiences like brewery tours and tastings events. Digital engagement will continue to play a big role in marketing. Indian brands also have opportunities to expand to international markets, especially in regions where Indian flavours are gaining popularity. Growth will depend on innovation, strong branding, and adapting to changing customer preferences.
The hospitality sector in India is a powerhouse for job creation and a key contributor to the nation’s economy. With the Union Budget 2025 around the corner, this pivotal industry is hopeful for policy changes that could propel it toward the ambitious goal of $3 trillion tourism GDP by 2047.
India’s restaurant sector, a critical segment of hospitality, has outlined several expectations, including Input Tax Credit (ITC) for GST, simplified labor laws, a streamlined approval process, tax incentives, infrastructure status for hotels and convention centers, and GST rationalization. Industry bodies like the NRAI and FHRAI have already appealed to the Finance Minister, seeking measures to support growth and sustainability. Here’s a look at what’s at stake and what experts are saying.
Driving Tourism and Job Creation
India’s growing population demands new job opportunities, and the hospitality sector is rising to the occasion, with restaurants mushrooming nationwide. However, this vibrant industry faces challenges like fluctuating food and beverage prices and high GST rates. The sector’s leaders urge the government to reconsider its policies to unlock its full potential.
Col. Manbeer Choudhary, CMD, Noormahal Group, highlights a crucial demand: “One of the key expectations from the government is the abolition of the 18 percent GST category for hotels with room rates exceeding Rs 7500, merging it with the 12 percent GST category to stimulate domestic and inbound tourism. Additionally, granting industry status to the hospitality sector could improve access to finance, regularize policies, and take a strategic approach to tourism development. Special allocations for infrastructure in tier-II and tier-III cities can boost regional tourism while creating local employment opportunities.”
"The hospitality and tourism industry is a vital pillar of India’s economy, supporting millions of jobs across cities and villages. However, the sector is facing challenges due to declining tourism as inflation and high taxes make travel less affordable. We hope this budget introduces measures to make travel more accessible and budget-friendly. Reducing GST rates for hotels, restaurants, and operators in the budget-friendly and hostel categories could help lower costs for travelers, encouraging more people to explore India’s rich cultural and natural diversity. Investments in better tourism infrastructure, improved connectivity, and tax incentives for businesses, along with easier access to loans for small operators, can further boost the sector. These steps would not only revive tourism but also strengthen the economy and create employment opportunities across the country," adds Keith Menon, Co- owner of Hermiting Hospitality.
Relief for Startups and Eco-Friendly Initiatives
“Increased budgetary support for food processing facilities might drive rural job creation and boost exports,” shares Simranjeet Singh, Director, CYK Hospitalities. Singh also emphasizes that tier-II and tier-III cities could benefit from policies promoting digital ecosystems and innovation in sectors like agri-tech, health-tech, and green-tech. Startups are also clamoring for continued tax exemptions and the removal of angel taxes to attract more funding.
GST Refunds to Boost Inbound Tourism
Zero GST or GST refunds for foreign tourists could elevate inbound tourism and global competitiveness. Additionally, eco-friendly incentives and investments in green tourism infrastructure can align the sector with the United Nations Sustainable Development Goals, appealing to conscious travelers. Technology and AI integration, alongside sustainability-focused policies, could transform the hospitality industry, making it more competitive and future-ready.
Path Towards Sustainability
Simplified taxation, including reduced GST rates for small eateries, is a major ask from the food and beverage sector. Subsidies for sustainable packaging and support for local sourcing can ease operational burdens while aligning with global sustainability trends.
“At 99 Pancakes, we hope the Union Budget 2025 addresses growth enablers for the F&B industry,” says Vikesh Shah, Founder of 99 Pancakes. “A reduction in GST on dining services and tax relief on sustainable packaging could be crucial. Scalability and market expansion will benefit from advanced kitchen technologies that drive operational efficiency.”
Reinstating Input Tax Credit (ITC)
The absence of ITC has been a long-standing issue for the restaurant industry. Sandeep Jain, Founder & MD, Desi Masala, stresses, “Reinstating ITC on GST would reduce operational costs and boost profitability. Tax incentives, easier credit access, and rationalizing licenses are also critical. Granting industry status to the food service sector will enable financial benefits like lower-interest loans, special schemes, and faster license approvals. These measures can stimulate entrepreneurship and drive sustained growth.”
Niketa Sharma, Managing Director, Keish Hospitality, adds, “Allowing input tax credit setoffs would significantly improve profitability. Additionally, investing in infrastructure and promoting lesser-known destinations will attract tourists, creating jobs and driving economic growth.”
Online Delivery and Cold Storage Support
With inflation affecting costs, the sector seeks budget provisions to enhance online ordering systems and curb monopolistic practices by platforms like Swiggy and Zomato.
“Supporting service charge mandates and government-backed insurance programs to cover potential losses will ensure financial stability,” says AkshayLuthria, Founder of Street Storyss. “Provisions for better online delivery options are urgently needed.”
In the agriculture and food processing sectors, investments in cold storage and transportation infrastructure are critical. Janardhan Swahar, MD & CEO of Y-Cook India Pvt. Ltd., explains, “Incentives for sustainable farming and technology adoption can enhance productivity and competitiveness in global markets, contributing to both the economy and food security.”
Nidhi Singh, Co-Founder of Samosa Singh, shares a similar sentiment: “Simplified taxation and sustainable business practices can boost startups like ours. Stimuli for local sourcing, reduced taxes on essentials, and support for cold-chain infrastructure will improve operational efficiency and product quality.”
Alco-Bev Industry’s Expectations
The alco-bev sector, a major revenue contributor for states, seeks regulatory consistency and streamlined policies.
“Effective Free Trade Agreements (FTAs) and standardized pricing across states are essential,” notes John Royerr, Founder of Ochre Spirits. “A stable regulatory framework and innovation incentives can position India as a global leader in the alco-bev space.”
Hopes for Interest Rate Reductions
The retail sector anticipates transformative policies like interest rate reductions to facilitate financing and drive growth.
Shekhar Swarup, Joint Managing Director, Globus Spirits Limited, highlights, “Tax relief for citizens could boost disposable income, enhancing purchasing power. Recognizing F&B retail as an essential service and offering subsidies on utilities and land costs would also provide a much-needed lift.”
A Vision for Industrial Growth
With the Union Budget 2025 poised to impact industries across the board, the hospitality and restaurant sectors eagerly await announcements that could pave the way for growth, sustainability, and innovation. Let’s hope the government delivers on these expectations to empower one of India’s most vital economic engines.
India's alcohol sector has been expanding gradually due to a number of factors, including rising disposable income, urbanization, and the willingness to try new and experiential beverages. Both domestically produced alcoholic beverages (such as Indian-made foreign liquor, or IMFL) and imported alcoholic drinks, craft beers and artisanal drinks are becoming more and more popular in metropolitan areas as people are experimenting with different flavors and tastes. By 2027, the alcoholic industry is expected to grow to 73 billion dollars at a compound annual growth rate (CAGR) of 7%.
What’s Trending
“Innovation in the beverage sector is focused on introducing new flavors, sustainable practices, and premium offerings. One challenge, however, is the complexity of regulations around import-export, which can impact the speed and efficiency of bringing new products into the market,” shared Ishwaraj Singh Bhatia, Co-Founder & COO, Simba.
Brands are tackling these challenges by adopting better supply chain management practices, ensuring compliance with local regulations, and exploring collaborations with domestic producers to reduce reliance on imports. Consumers are increasingly shifting toward craft beers, low-alcohol alternatives, and healthier drink options, with a strong preference for beverages made from natural ingredients, minimal preservatives, and sustainable practices.
“Additionally, premiumization and experiential elements, such as food and beverage pairings, are becoming more popular,” added Bhatia.
The alcohol beverage sector is evolving rapidly, shaped by consumer preferences for healthier, sustainable, and premium options.
Commenting on the same, Amrita Singh, Co-Founder and President, Sommeliers Association India said, “The Key trends includes the rise of low- and no-alcoholic beverages, the popularity of craft spirits and local flavors, and the increasing demand for sustainability, and the rising potential of wine in emerging markets.”
Shift towards Global Palate
“As the market matures, brands like Yaksha Whisky and Rahasya Vodka are focused on innovation to meet these evolving tastes. There’s a growing sense of pride among Indians for homegrown brands that not only offer exceptional quality but also align with global standards. There’s a clear shift toward a global palate infused with a distinct Indian touch, as consumers look for unique flavors and premium experiences,” added Varna Bhat, Founder & Master Blender, House of Blisswater.
These brands are also seeing a move towards premium, environmentally conscious packaging solutions that reflect both quality and responsibility, making the Indian beverage sector looks exciting, driven by these innovations and growing consumer expectations.
Importance of Sustainability packaging:
Sustainable packaging has become a priority as environmental consciousness grows. The industry is shifting toward eco-friendly materials, including lightweight bottles, recyclable cans, and biodegradable packaging to reduce carbon footprints. This commitment to sustainability is not only meeting consumer demands but also addressing wider environmental concerns. Looking ahead, the alcoholic beverage sector is likely to see continued growth in premiumization, with consumers willing to pay more for quality and unique experiences. Expanding e-commerce channels and embracing technological advancements will further shape the sector, enhancing accessibility and broadening the scope of sustainable practices across the industry.
“Sustainability is a key focus for the industry. Beverage companies are adopting eco-friendly packaging solutions, including recyclable materials, biodegradable options, and a preference for glass over plastic. Guidelines are becoming stricter, and many companies are embracing these changes to reduce their carbon footprint and align with global sustainability goals,” pointed Bhatia.
Overcoming Challenge
The major challenges are regulatory prices, levies on liquor and ethanol prices. The excise duty differs from state to state.
“The sector faces notable challenges, particularly with export and import barriers. Regulatory discrepancies, high tariffs, and complex import/export processes can hinder international trade, impacting market accessibility for smaller brands. Compliance with varying global standards, especially regarding labeling and ingredients, adds another layer of complexity,” added singh.
July 13 is designated as World Rum Day. To celebrate, enjoy fine rum while reading up on rum facts, including different kinds of rum and what you should try next.
Similar to whiskey, rum is one of the most well-liked options among drinkers. People have been consuming rum for years because of its flavor, variety of styles, and texture. Made from sugarcane juice or molasses, rum is a type of liquor. The spirit is a transparent or deep amber-colored, clear liquid. You might assume from this phrase that it will be very sweet, but it isn't. Since the early colonial era, preparing rum has become a luxury and reasonably priced means to have a nice glass of the stuff. Because there is so much variation in production, there are currently many different types of rums on the market.
Every rum brand has a distinct flavor that comes from the method and duration of aging the rum. It sets rum apart with its rich flavor and color. The Old Monk, Captain Morgan, Bacardi, Malibu, Hercules XXX Rum, McDowell's No. 1 Celebration Rum, Havana Club 7, Short Story, and numerous other brands. French Caribbean Rum, White Rum, Aged Rum, Dark Rum, Flavoured Rum, Spiced Rum and Cahaca Rum are some of the varieties of rum.
The size of the Indian rum market was estimated at USD 2,097 million in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 5.3% to reach USD 3,500 million by 2031.
India has a large youth population, with over 50% of the population under 25 year old. This group is getting more interested in trying out new and unusual alcoholic beverages and is open to experimenting with different flavors and brands. Rum producers who can attract this kind of consumer will enjoy long-term loyalty.
The south and west of India account for more than 55% of the country's rum consumption, mostly of dark rum. Young Indians are starting to drink more white rum as a result of the nation's growing cocktail culture and increased female usage.
Trends and Growth
Though known primarily as a dark spirits market for Whisky and Rum, India has always been perceived to produce mass spirits.
“There were only a handful of brands and players in the market who promoted rums the right way and educated consumers on different ways of enjoying rum. With limited brands and accessibility, there was limited growth,” said Pankaj Balachandran, Brand Director, Short Story adding that Rum, which is still popular in the south of India, is now undergoing a transformation across the country. With more and more premium Indian rum brands entering the market and an increasing number of people being educated in different styles of rum, rum is on the way to have a fresh wave in the country.
India's exposure to different styles of rums has slowly started improving in the past couple of years. More and more people are asking about Demerara rums and agricole rums, which weren't as popular in India. As they travel and get exposure, people are also understanding different styles of rums like English style, Spanish style, French style, etc.
He added, “With our Short Story White Rum, our aim is to expose people to these styles of rums. With more international brands like Plantation now targeting India and entering the market and more action in the domestic rum market with an array of rums being produced locally, the near future of Rum in India looks interesting.”
Currently, the brand is concentrating on expanding our presence. Short Story is already present in 9 key domestic markets like Goa, Maharashtra, Delhi, Haryana and more and this year, and plan to open more domestic markets, international presence of the brand too.
Shift in consumer preferences:
“The Indian rum market is experiencing significant growth, driven by a shift in consumer preferences towards premium and artisanal rum varieties. While the premium segment is still relatively small, it holds strong potential. Urban consumers are increasingly seeking high-quality spirits that offer unique and authentic experiences. However, price sensitivity remains an important factor, with consumers looking for value—premium quality at an affordable price,” shared John Royerr, Founder of Ochre Spirits by adding that as the market evolves, it's clear that consumers are becoming more adventurous in their choices. They are not just looking for a drink, but an experience that resonates with their lifestyle and values. This trend is particularly evident among younger consumers who are driving the demand for premium and craft spirits. They seek transparency in production, unique flavor profiles, and a brand story they can connect with.
We know how important it is to strike a balance between top-notch quality and a good price. We're aiming to make our mark in the premium rum market, helping to boost the growth and sophistication of the Indian rum.
Love is in the air and this Valentine's Day restaurant brands are pulling out all the stops to make it an unforgettable celebration. From heart-shaped pizzas to decadent desserts, here's how these brands are spreading the love:
Sweet Gesture
This Valentine’s Day, Mad Over Donuts comes up with their delectable selection of heart-shaped donuts. Whether it's for your partner, family, friends, or even yourself, Mad Over Donuts has crafted three irresistible flavors to indulge in. From the creamy Cupid Creme to the sprinkled Sweetheart Sprinkle. And for a truly personalized touch, their Box of Happiness offers 24 donuts adorned with heartfelt messages, perfect for gifting your Valentine.
Love and Cheesecake sets the stage for a delightful Valentine's Day with their exclusive collection of treats. From the charming 'Love Rosie' bento cake to the classic 'Love Jolie' Red Velvet cheesecake, each dessert is a blend of sweetness and romance. Ideal for celebrations or thoughtful gifts, Love and Cheesecake's creations promise to create sweet moments.
A Toast to Romance
At Bira 91 Taproom, love takes center stage with their Valentine's Love Affair cocktail menu. From February 1st to February 29th, indulge in a tantalizing array of drinks expertly crafted to embody the essence of romance. Paired with Chef Vicky Ratnani's delectable dishes, this celebration promises to ignite your passion and tantalize your taste buds.
Across Beer Cafes nationwide, love is celebrated with the Glowing Hearts Fest—a month-long celebration of amour. With enchanting cocktails and cozy vibes, Beer Cafes offer the perfect backdrop for creating cherished memories.
A Heartfelt Feast
Domino's Pizza adds an extra layer of delight to Valentine's Day with its Love Loaded Menu. Featuring a range of heart-shaped pizzas and a decadent Choco Lava Cake, each bite is crafted to make the occasion special for you and your loved ones. From classic Margherita to sumptuous Chicken Pepperoni, Domino's promises a burst of flavor and cheesy goodness in every slice.
On the other hand, Tinder and Pizza Hut has come together for an epic collaboration, offering users a chance to indulge in the perfect Valentine's Meal. With a special Tinder Profile Card and exclusive discounts, users can enjoy a medium pizza, loaded garlic bread, Pepsi, and a heart-shaped Choco Volcano cake at just Rs.369. This partnership aims to create memorable experiences and foster meaningful connections during the month-long celebration of love.
As Valentine's Day approaches, these restaurant brands go above and beyond to make the occasion truly special. Whether you're sharing a meal with your significant other, treating your friends, or indulging in self-love, these offerings are sure to add an extra dose of sweetness to your celebrations.
Karan Khilnani was always drawn to the food industry by a deep passion for creating memorable culinary experiences. Exploring diverse flavors and crafting unique combinations became his way of expressing creativity and connecting with people through the universal language of food. Today, he owns one of the popular bar, Elephant & Co in Pune & Goa. Excerpts from the interview:
Pune has gained a reputation as a top nightlife destination for the youth in the country. What sets this city apart from others in your opinion?
Pune's vibrant nightlife is a testament to its youthful spirit and eclectic energy. The city's unique blend of historical charm, thriving educational institutions, and a diverse cultural scene creates a dynamic backdrop for an unparalleled nightlife experience, making it stand out as a magnet for the young and the young at heart.
Could you share some insights about Elephant & Co?
Elephant & Co, born in 2015 in Pune, has become the heartbeat of Kalyani Nagar and Baner. A hub for progressive food, vibrant drinks, and lively conversations, we're more than a restaurant – we're an evolving ECOsystem.
We've noticed that today, people tend to meet for drinks before having a meal. What do you think has driven this trend?
The trend of gathering for drinks before a meal has gained popularity. It's a way for people to unwind, socialize, and set a laid-back tone for the dining experience. At the heart of this trend is the desire to create a relaxed atmosphere, fostering connections, and enhancing the overall enjoyment of the upcoming meal. It's a modern way of savouring both the social and culinary aspects of the dining experience
Additionally, how do you ensure your food pairs perfectly with the drinks you serve?
We make sure our food and drinks are a perfect match by having our chefs and mixologists work closely together. They experiment with flavours to create a menu where each dish complements our drinks, giving you a delicious and well-rounded dining experience every time you visit
What is the unique selling point (USP) that has contributed to your success?
Our standout quality lies in more than just our culinary offerings; it's about crafting a space that radiates warmth and a genuine sense of welcome. We take pride in curating an inviting atmosphere, where they aren't just customers but cherished members of our community. The fusion of a varied menu, culinary creativity, and unwavering hospitality guarantees that each visit is not merely a dining experience but a sincere embrace into our extended family.
Tell us about your new venture JUJU.
Pune's first tequila bar, blending Mexican spirits with cosmopolitan charm. With a snug yet inviting ambiance featuring origami-inspired decor, communal tables, and a curated menu, JUJU invites patrons to savour the essence of togetherness and authentic flavours in every sip and bite. It's more than a bar; it's a celebration of culture, style, and unforgettable moments.
What inspired the creation of a Mexican tequila bar in Pune?
We wanted to set a precedent in Pune for how style, soul, and simplicity could harmonize with tequila, tacos, and the finger-food meals. Juju allows us to experiment with Tequilas. Which is why Juju is the first tequila bar in Pune.
Can you share five tips for running a customer favourite bar?
Offer a diverse drink menu, prioritize a welcoming atmosphere, ensure exceptional customer service, regularly update the menu with innovative offerings, and engage the community through events and feedback. Crafting an unforgettable experience is the essence of a customer-favorite bar.
Lastly, as a bar and beverage professional, what trends do you foresee in the industry?
As a bar and beverage professional, I foresee several industry trends. Craft cocktails featuring unique flavors and local ingredients are gaining popularity. Sustainability practices, such as eco-friendly packaging and local sourcing, continue to be prominent. The integration of virtual and augmented reality experiences in bars may redefine patron engagement. Non-alcoholic beverages crafted with complexity and creativity are on the rise. Additionally, the fusion of cultural influences in both drinks and ambiance is expected to grow, offering patrons a diverse and immersive experience
In a world that constantly reshapes our preferences, we find an intriguing transformation taking place in the world of fine spirits. The movement of health-conscious individuals is reshaping the way we enjoy our drinks. People are choosing the path of moderation without sacrificing the pleasure of indulgence. With an increased awareness of the pitfalls of excessive sugar consumption, the new breed of enthusiasts is gravitating towards sugar-free drinks that promise not only unadulterated taste but also a more comfortable morning after.
The allure of sugary mixers masking the intricate flavors of our chosen spirits is slowly fading away. People are no longer content with the overwhelming sweetness that conceals the genuine essence of a well-crafted cocktail or a meticulously aged whiskey. They want to truly savour what they drink.
Unmasking the Masking: A Quest for Authenticity
Sugar has often acted as a sly accomplice, camouflaging subpar ingredients and inferior craftsmanship. For far too long, it provided an easy escape from the truth of what we were imbibing—a cover-up for shortcuts taken in the pursuit of profit. However, the modern consumer wields knowledge as their most potent shield. Armed with information about the art of mixology and the origins of their preferred spirits, they demand an honest experience. They reject the façade and uncover the genuine nature of their drinks, raising a glass to authenticity and transparency.
The availability of information has granted us the power to explore beyond the surface, to understand the intricacies of distillation, fermentation, and aging. With this knowledge, the contemporary imbiber seeks a drink that reflects their understanding. This isn't about diluting the drink; it's about amplifying the appreciation. Sugar-free drinks are emblematic of a generation that craves genuine connections, both with the spirits they consume and the tradition that births them.
The reason for this is that the use of sugar in drinks presents a paradox. While it promises heightened sweetness, it often robs us of the very essence it purports to elevate. Picture a glass of fine wine—each grape carefully tended; each note meant to be savored. When inundated with added sugars, the delicate interplay of flavors surrenders to an aftertaste that lingers like an uninvited guest. Sugar-free drinks, on the other hand, respect the inherent symphony of flavors, allowing each note to resonate without the discord of excessive sweetness.
Honoring Craftsmanship and Well-being
As health-conscious consumers gravitate towards sugar-free drinks, a host of benefits comes to light. This movement isn't merely about restriction; it's about liberation. By embracing sugar-free options, individuals unlock the full spectrum of flavors and aromas that their chosen spirits offer. The palate is allowed to explore the nuances and subtleties that otherwise might remain hidden beneath layers of sugar.
Furthermore, the quest for sugar-free indulgence has a tangible impact on well-being. Excessive sugar consumption not only dulls the drinking experience but can also amplify the discomforts of the morning after. By choosing sugar-free drinks, enthusiasts ensure a more enjoyable evening and a more pleasant awakening, aligning their pursuit of pleasure with their commitment to a healthier lifestyle.
In the end, the ascent of health-conscious alcohol consumers towards sugar-free drinks signifies a profound shift in the narrative of indulgence. We bid farewell to the days of compromised flavors and sugar-concealed flaws. As we tread this new path, we salute those who prioritize both pleasure and wisdom. They are trailblazers, shaping an era where authenticity, knowledge, and the pursuit of unalloyed joy define the way we raise our glasses. So, here's to the future—to a realm where sugar-free drinks reign, and where our libations mirror our quest for the purest forms of enjoyment.
Tonic water and soda, though both effervescent, clear beverages, diverge significantly in composition, history, flavour, and purpose. Tonic water's roots are entwined with the British colonial experience in India during the 19th century, where it was ingeniously developed as a way to mask the bitterness of quinine—a malaria-fighting compound—by mixing it with water and sugar. This tonic water, often referred to as "Indian Tonic Water," served as a medicinal tonic in the past.
In contrast, soda originated from the carbonated mineral waters of the 18th century and evolved with a multitude of flavours. It's carbonated water infused with fruit extracts, sweeteners, and sometimes caffeine.
Tonic water's most distinct characteristic is its bitterness, stemming from the quinine infusion. Sweeteners and citrus notes are often added to balance this bitterness, and tonic water is commonly used as a mixer in cocktails like the Gin and Tonic, adding complexity and sophistication to the drink.
Soda, on the other hand, boasts a wide range of flavours—from traditional cola, lemon-lime to exotic variations like ginger ale , Mango Fig, Pineapple Almond, Grapefruit rosemary. Soda is often enjoyed on its own, offering a refreshing companion to meals or as a standalone delight.
Culturally, tonic water carries historical significance as a remedy for malaria and now symbolizes mixology's artistry. Its bitterness adds a touch of sophistication to cocktails, catering to the world of fine beverages.
In contrast, soda is intertwined with pop culture, associated with celebrations and nostalgia. The sound of a soda bottle popping open & the mere mention of certain brands invoke nostalgia & familiarity. While tonic water contains calories and carbohydrates due to added sweeteners, some brands offer diet options with reduced or no-calorie sweeteners.
Interestingly, some individuals are slightly allergic to quinine, experiencing headaches on consumption, it’s also not safe for pregnant women to consume it – So quinine free tonic waters have also been introduced as well.
Soda, with its sugary content, is linked to health concerns like obesity and dental issues. In response, healthier alternatives with lower sugar and sodium content are being sought, with many brands offering diet or zero-calorie versions, often featuring artificial sweeteners. This move towards healthier options reflects the growing consciousness about the nutritional aspects of these beverages. However, there’s another extreme ,where we now hear that artificial sweeteners such as Aspartame are in the news for being not entirely safe for human consumption.
In conclusion, the divergence between tonic water and soda is apparent in their composition, flavour, historical origins, and cultural significance. Tonic water's association with malaria treatment and its role in mixology make it unique, while soda's broad array of flavours and cultural resonance set it apart. As consumers, understanding these differences empowers us to make informed choices, aligning our preferences with health considerations.
As we move forward, the trend towards healthier options will likely shape the landscape of both tonic water and soda, encouraging the consumption of beverages that are not only refreshing but also mindful of our well-being.
Reading the nutritional label has become important now than ever before. Choosing beverages with low natural sugar content & natural flavouring ingredients instead of those with artificial sweeteners and nature identical flavourings and a whole list of ingredients one cannot understand let alone pronounce , will soon turn the norm for both Sodas and Tonics.
In our early days of setting up Stranger & Sons, we encountered so many brands based on a vision of India that we knew very well had never been a reality. To add to this, there wasn’t any other quality home-grown product that was conveying the story of India from our perspective so we decided to change that. Stranger & Sons is a brand born in India that is progressive yet rooted, and designed to celebrate it! Our spirit celebrates the familiar flavors of India, presented in its own unique & ‘strange’ way and in turn acknowledges the diverse and nuanced traditions of this subcontinent. Our label, bottle, liquid and every brand experience was designed to speak to a discerning Indian consumer as well as a global audience.
Step one for marketing the product is always recognising the target audience. For brands who are into gin business, the primary target audience is consumers who are willing to step out of their comfort zone for more experimental choices with a comfortable spending capacity to consume good quality cocktails made with good quality spirits. These brands also went after the target group that resonates with today’s bold and layered India and created these spirit as a fitting representation of the same.
Step two – these brands integrated storytelling through branding, packaging, events and experience as they can never resist a good story and as Indians, storytelling is in our genes.
Next, events are a large part of us coming closer to the consumers and getting them to experience these brand and product, first hand. Building experiences through storytelling has been at the core of the marketing plan; from the smallest to the largest format of events. Narrating stories by creating fictional characters as an inspiration to the cocktail menus, the brand should always ensure to layer every experience with curiosity to leave a lasting impression on every consumer that interact with them. A few things to keep in mind while marketing an Indian brand and taking to a global audience-
A. Conceptualizing experiential events with exclusively crafted experiences and cocktails: a lot of effort, brainstorming sessions, debates and research that help one identify what the consumer wants vs what message we want them to go back with.
B. Identifying the objective keeping the consumer demand/choice in mind; this is the crucial part to begin the planning for a promotional activity. Finding the right venue, concept, experience, cocktail menu follows as the next step.
C. Lastly, having an execution plan and the right team which is in fact the most important part of this exercise that helps us ensure that the consumer has a seamless and memorable experience and leaves as a loyalist.
Another important aspect for these brand is picking the right brand Ambassadors who constantly keep themselves updated on new industry trends while striving to innovate and create something unique in the cocktails space at the same time. This allow them to have a direct pulse in the industry and their expertise guides the brand in partnering with different restaurants and building brand equity amongst the trade in various capacities.
Next, collaborations play a prominent role in growth, reach and innovation and it is important to look for the right kind of synergy with brands. Perry Road Peru, India’s first distilled bottled cocktail was conceptualized right from the start as an expression of their shared love for local and seasonal and a celebration of the city. Furthermore, it was their thirst for innovation which led the teams at Stranger & Sons & The Bombay Canteen to create something unique and entirely new for India’s cocktail and gin enthusiasts. Trading Tides and Spice Trade Gin, our collaboration with Four Pillars Distillery, Australia were created after many distilling sessions over Zoom and has a story that goes beyond flavor–one of a mutual connection with the coasts of the Indian Ocean. They exchanged ideas, emails, and traded spices to make this creation happen! These collaborations help us experiment as well as recruit more consumers into our world and introduce them to our products. Ultimately, there is a great amount of brand equity that is built and garnered through such collaborations.
For these kinds of brand, innovation is a key driving force and they are always thinking of how to go a step further. These brands want to address the gap in other spirit categories as well and not just gin. For eg: we recently launched Short Story - A portfolio of a classic London Dry Gin, a Grain Vodka, and an Indo-Caribbean White Rum. Much buzz and hype has been generated about the ingredients and the technique that goes into the creation of some of these home-grown brands.
Lastly, digital marketing plays a key role in increasing awareness and reaching a wider audience. Social media is also a tool to excite our consumers into our world and directly engage with our core community that helps to bring them closer to the brand.
On His Venture
Being from a fashion designing background, Suman Bharti was always into food and. While living in the UK he visited different pubs and brewery that always attracted him towards the business. “It was in 2004 when we tried a brewery while hanging around in Switzerland. And, that’s when I realized that this is something we should have in India,” he added by point that Reflex is an inspiration from all his travel experience.
What’s Make the Brand Different
The restaurant ambience and the beer we serve is our USP. It is very different from other brewery in the market as we serve IPA, Vienna Lager beer, wheat beer etc. Our beer is our strength. If you see our food, every kind of food palate will fit into this. We cover everything from Mexican, pan Asian, Indian, Continental amongst others.
On His Restaurant Design
We did lots of research on what not to do before getting settled for anything. It was one and half year long research to start this dream project. And it took me nine months to build up this place. So, make sure you build up a product which is quality research. It should not be a copy. If you see this place, I don't think you'll find it somewhere else. It's very elite, it's very niche, it's very different.
His View on Food Delivery
We don’t do online deliveries. I think when the food is delivered at home it loses its true essence of freshness. That’s why I like to keep it fresh and healthy.
Targeting the Right Clientele
Ours is more like corporate crowds. So, we have people who lives in closeby apartments. We don’t restrict our clientele but we target all age group. Reflex is an experience for everyone.
What is your take on brewery trends these days?
People have started experimenting with beers and there’s a lot of experiment going on. Everybody is launching their own kind of beer.
South-Africa based Frost Popsicles recently partnered with FranGlobal to enter India and expand their wings here. Started by Natasha Fagri and her business partner Jon-Marc De Carvalho in 2016 in South Africa where both of them grew up surrounded by families who appreciate good food. “We both love to cook, and we create and taste-test every popsicle recipe until it’s right,” shared Fagri who named it as Frost Popsicle because of the frozen nature of the product and surrounded by the amazing food culture and the wine and craft spirits industry of their native country. “We believe in a great product made without compromise. Building this brand and product from scratch starting with two flavour profiles and growing the range over six years to include seven premium alcoholic and non-alcoholic popsicles, we know hard work is the best friend of a good idea,” she added by adding that their instincts have been right – people loved Frost’s premium, all-natural popsicles from the moment they launched, and it wasn’t long before we knew we needed to expand our horizons for this brand. Excerpts from the interview:
What’s your USP?
Consistent product innovation, using only premium ingredients with nothing artificial, staying true to the authentic flavour profile of whichever alcohol we are working with.
What’s your plan for Indian market?
Our plans are currently in progress, presenting Frost to relevant potential partners in the Indian market with the help of FranGlobal. We see the potential for the import of our product specifically for the hospitality, retail and event markets in the country. We also see potential to manufacture Frost in India, if the demand suffices.
Models in India you are looking at? Will it be a franchisee owned, franchisee operated, or franchisee owned and the company operated?
Our focus is not on franchising in the traditional sense, but rather on partnering with long-term, like-minded import partners who have experience in importing products of an alcoholic nature. We have exported to Singapore, Mauritius and the USA earlier and we’d like to continue to expand into receptive markets where there is demand and interest. Hence, our decision is to partner with FranGlobal to launch Frost into the Indian market and from there other neighbouring territories also.
Which market segment are you actually targeting in India?
The hospitality and event market segments. The benefits of working with our brand is the opportunity to partner with a brand that is committed to quality and innovation in a sector of the market (frozen alcoholic novelty products) that continues to grow aggressively around the world.
Where will you be sourcing the ingredients?
Our product is manufactured in South Africa and all our ingredients are sourced there from our trusted network of suppliers.
There is an increase use in technology across sector. So how will you be using the technology?
Our product range has successfully been sold online via our own e-commerce and third party sites and the same opportunity could be explored in the Indian market, if relevant.
Any new trends that you're witnessing in the industry as a global brand?
Frozen alcoholic novelty products like our popsicles, continue to grow aggressively around the world as they’re viewed as a quick, convenient and fun variant for alcohol consumption. Furthermore, the growing popularity of frozen cocktails amongst millennials and the significant increase in the purchase of frozen beverages, has also contributed in boosting market growth. According to Grand View Research, the global ready-to-drink cocktails market size was valued at £521m in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 12% from 2021 to 2028.
If all goes right, when can we see you opening the first outlet in India? Targets for Indian market?
The strategy for Frost Popsicles in India is not opening an outlet but start with piloting the product with our partners and putting it across different channels. The channels include HORECA, premium licensed alcohol shops and high-end events. This is the same strategy that Frost Popsicles follow in their home-market in South Africa and in also in USA. Therefore, in India as well, we see a very large opportunity to work with our partner/s and have the best alcoholic popsicles in the world easily accessible across every channels.
From traditional drinks to contemporary, the Indian market for alcoholic beverages has been growing steadily. While established players have dominated the industry for decades, the past few years have seen the emergence of a new breed of entrepreneur alco-bev start-ups. These start-ups are disrupting the traditional market by introducing innovative products and catering to the changing preferences of the Indian consumer. The potential for growth in this market is immense, and India is already the third largest market in the world.
According to a report by Indian Council for Research on International Economic Relations (ICRIER), the Indian alcoholic beverages market is one of the fastest-growing globally, with an estimated market size of USD 52.5 billion, it also contributes more than 15 lakh jobs and is expected to grow at a CAGR of 6.8 per cent. This growth can be attributed to several factors, including a burgeoning middle class, the growing acceptability of social drinking, migration from rural to urban areas, and increasing disposable incomes.
Trends driving the growth of Alco-Bev Startups in India
As consumers increasingly prioritize health and natural ingredients in their alcoholic beverages, startups have emerged to meet these changing preferences. Many are creating low-calorie beer, craft spirits using organic ingredients, and alcoholic kombucha, all catering to the growing demand for low-sugar, natural options. Alongside these innovations, startups are also introducing a variety of flavoured alcoholic beverages, including raspberry, peach, and apple, and experimenting with locally sourced ingredients to create unique and distinctive flavours in the craft spirits category. One such process of making MEAD (using fermented honey mixed with fruits, spices, grains or hops or just water), traditionally MEAD was produced in ancient times across Europe, Africa and Asia. The earliest written record of MEAD was possibly the SOMA mentioned in Rigveda around 1700 – 1100 BCE. This trend underscores how Alco-Bev startups are not only innovating but also reimagining the past to create new, compelling offerings.
Another trend pushing the growth is the demand for sustainable and eco-friendly products. Consumers are becoming increasingly aware of the impact that their purchasing decisions have on the environment. They are looking for products that are made from sustainable materials and have a low carbon footprint. It has led to the rise of start-ups that are creating products like biodegradable packaging, spirits made from locally sourced ingredients and products made from recycled materials. Also, the funding ecosystem for alco-bev start-ups in India is growing and presents a significant opportunity for entrepreneurs. According to industry reports, the Indian alco-bev start-ups raised over USD 200 million in funding in 2020. The increasing availability of funding has made it possible for start-ups to disrupt the traditional market and expand their reach globally.
Riding the Wave of International Market Growth
The alco-bev start-up industry has the potential for international growth. The market for alcoholic beverages is expected to grow at a CAGR of 7.98 per cent to reach USD 52.5 billion in revenue during the forecast period 2023 to 2025. This growth is being driven by several factors, including increasing demand from markets like India, China and Brazil. In India, the alco-bev start-up industry is still in its early stages, but it is growing rapidly. Some of the most successful start-ups in India include Bira 91, which creates craft beer, and Nao Spirits - Hapusa, which creates craft gin amongst others.
Challenges Faced by Alco-Bev Start-Ups in India
There are several challenges that alco-bev start-ups in India face. One of the biggest challenges faced by alco-bev start-ups in India is the complex and often difficult to navigate regulatory environment. The Indian government has strict regulations on the production and sale of alcoholic beverages, and state governments are also actively engaged in the manufacturing and distribution of alcoholic beverages, each with their own taxes that vary from state to state. This can make it challenging for start-ups to enter the market and navigate the various regulatory requirements. Additionally, alco-bev start-ups require significant investment to develop and market their products, and many start-ups struggle to raise the necessary funds. Despite these challenges, the potential for growth in the alco-bev start-up industry in India is immense, with a growing market for alcoholic beverages and evolving consumer preferences creating a huge opportunity for innovative start-ups.
Despite these challenges, the potential for growth in the alco-bev start-up industry in India is immense. As the market for alcoholic beverages continues to grow globally, and as consumer preferences continue to evolve, there is a huge opportunity for start-ups to create innovative products that meet the needs of consumers.
Conclusion
For start-ups in the alco-bev industry in India, the key to success lies in creating innovative and quality products, building strong brands and expanding globally. The industry presents a significant opportunity for entrepreneurs, but it is also highly competitive. Start-ups must therefore focus on differentiating themselves from their competitors and providing unique value propositions to consumers. Start-ups must be open to collaborations and partnerships with other players in the ecosystem. While the industry does face challenges, such as the complex regulatory environment and the need for capital, the potential rewards for successful startups are significant.
New wave spirits or gins were a key moment in the liquor industry timeline not just for India but the world. However, to set context and understand this properly we need to acknowledge that uptake on concepts take a bit more time to land in India and usually a few years behind the international market.
The new age spirits had already started reshaping the beverage businesses in a lot of markets, heralded by the gin boom back as far as 2005/2006 in the European and American markets, 2010/2014 in the Asian markets. The boom arrived in India by 2016/17. The liquor industry and specifically the spirit saw the advent of local made craft gin and the sudden appreciation for it. A brand like Stranger & Sons was among the early innovators in the Indian new age spirits landscape and led the way for premium craft spirits in the space.
It wasn’t easy and like all innovations had its nay sayers among traditional liquor industry folks who could not fathom that the industry would turn in any other direction other than the trajectory it was on. However, change was slowly taking place which forced a correction on the traditional viewpoint and the timing was just right and the consumers were ripe to adapt to it given their penchant to travel and experiment.
The liquor universe was no longer dominated only by the big brands or the mass market IMFL spirits, there was a new segment that opened at the right pricing talking up Indian ingredients and craftsmanship and charging the right value for it which was key to pick from retail stores and bar call in venues. As of 2023 this industry has grown substantially with loads of new players coming in joined by even the big brands looking to create their version of craft nuanced spirits and, in some cases, investing in the small brands to increase footprint. Which means somewhere in there the bet paid off and once people get used to good quality spirits and service there is no coming back.
This has pushed our imagination as an industry and we see a lot more brands popping up and the ecosystem that will help them thrive largely the new age bars, restaurants and events like the cocktail weeks and gin fests which are popping up. This in turn has also made the market a lucrative potential for international brands who with the right partners have been able to penetrate the market and sell at acceptable prices and even manage to invest in building brands. To sum it up, back before 2015 when I used to run a bar we had limited options available and would have to pay through our teeth and work extra hard to convince people to get us cool stuff to use but now any bar worth its salt which wants to talk about quality stocks up all the brands and not only do they keep it in their inventory but also work with brands towards training their staff on using them effectively to better the bar experience.
New age drinks have therefore played a huge part in the evolution of the Indian bar and beverage scene and will continue to do so across various categories which are now becoming part of the new age drinks revolution like Indian craft beer, whiskies made and matured in India, rums, agave and of course things like Feni, mahua and a ton of local ingredient spirits which are improving the production quality to find more acceptability beyond their borders. I am glad I got to be here to see this segment flourish and get to use all this new stuff at Bars we run and work with.
After successfully launching BrewDog Midtown Mumbai, the Aloha International BrewPub brought BrewDog to Bandra in March 2022.
BrewDog Bandra is going to be the flagship outlet with the largest space and will host a variety of beers and dishes.
With the increasing demand for craft beer in the Indian market, BrewDog is the go-to brand for a lot of beer enthusiasts.
“BrewDog continues to bring a craft beer revolution to the world and we’re part of that. We intend to do the same in India. With a fast expansion plan, we want to educate the audience and promote good craft beer in the country. We’re excited to open the doors of the new BrewDog Bandra, the second bar in India,” shared Karan Jain, CEO, BrewDog.
With 20+ beers on tap, BrewDog has the ability to satisfy almost any particular beer craving one might have.
The 7000 sq. ft. space is spread across two floors with a bar and taps on each of them. The ambiance is perfect for a casual dining and drinking experience! With beautiful al-fresco dining on both floors, BrewDog Bandra has a lot more to offer than just its famous craft beers.
Known for its dog-friendly space, this one is going to be no different. Paw-parents are welcome with their dogs and the bar-crew at BrewDog will make sure that they have an equally good time.
An epic range of food, ranging from freshly baked buns and breads, succulent burgers, all the way to a variety of wood-fired gourmet pizzas, delicious mains and sides!
With the massive expansion plan of opening several more outlets in the next coming months, the entire BrewDog India team is helmed by the duo Pratekk Chaturvedi, COO, and Gaurav Gidwani, F&B Director.
Who would have thought that bar would once come to your home. From visting your favourite bar or restaurant for a chilled beer to drinking your most loved cocktails and beverages at home. Beverage trend has also changed with change in time. According to a latest report by CEIC, Food and Non Alcoholic Beverage Change was reported at 5.584 % in Jan 2022.
In the last 2-3 years, the beverage segment in India has become a crowded space. Traditional segments such as carbonated soft drinks and juices and the newly emergent categories of flavoured water and flavoured milk products are all competing to meet consumers’ hydration and thirst quenching needs. And, hence we are seeing lots of change and innovation in this space.
Here are top trends that experts in the segment believe would change the whole ecosystem of how we have been consuming our favourite drink/beverage. From people wanting to know the origin of an ingredient to health and value attached to the beverage they consume, consumer has become much more conscious in terms of their eating/drinking habit.
Non-alcoholic spirits: There is a segment of the adult population that does not want to consume alcohol across occasions. Hence, non-alcoholic gins and spirits will see an uptick as we have seen in Western countries. And, we are already seeing lots of brand venturing into the segment tapping the opportunity that they foresee will change the whole paradigm of how we have been consuming these spirits.
Ready to drink cocktails: Convenience is becoming more important for young adults. With more and more people working from home and relying on easy to consumer options RTD pre-mixed G&Ts and cocktails such as hard Seltzers will become more popular.
DIY kits: Home bars and home consumption of alcohol is becoming widespread. Products that offer consumers easy-to-mix kits for cocktails provide users convenience as well as scope for personalization. Not just beverages brand but restaurants have also tapped this segment as there is lots of opportunity ahead in the DIY segment wherein one get the bar at home itself.
Tequila: As we can see in America, Tequila will become a growing segment with a variety of craft brands emerging. We believe it is a matter of time that this category grows in India as well, when premium imported brands enter the Indian market and offer adults choice and quality.
Increased calorie consciousness: Buyers are becoming more and more conscious of the calories they consume. Focus on diet products that do not use artificial sweeteners or preservatives will find more acceptance among these conscious consumers.
A trend that particularly picked up in the UK from 2016 onwards, tonic water is making inroads to India. However, it was only around 2019 that the premium gin and tonic market saw an uptick in India. Indian consumers were willing to pay a higher premium and wanting to experiment with a wider variety of gins. About 70% of the time when a consumer is having gin, it is with tonic water. Since the market of gin is growing, so is the tonic water market. Additionally, consumers are now even caring about the TONIC that goes with their GIN. Adult consumers are more and more conscious of their calorie intake even while drinking, and want to engage with quality and premium tonic water brands. This has led to robust growth in the tonic water segment.
Growing Gin Market: Even though the white spirits consumption (including for gin) in India is less than 5% of the total alcohol market, India is still the 5th largest market for gin in the world. The premium gin market in India is expected to grow at 11.1% CAGR between 2020-2025. Globally, gin as a category was the second fastest growing spirits segment in 2019 after non‐alcoholic spirits.
Adults in metro cities in the age bracket of 30-45 years over index on gin and tonic consumption. The general feedback for the popularity of gin as a spirit is because of the emergence of various craft premium gin brands now present in the Indian market and the variety of flavours/botanicals possible with gins. There is also a general perception that gins are lower in calories and healthier comparatively.
Premiumization of Tonics: As consumers’ preferences become more evolved, the greater the demand for premium offerings and variety in flavours. With consumers getting access to premium quality gins with exquisite botanicals and unique flavour combinations, they also want to move away from the typical overly-sweet tonic water that overpowers their drinks. They want tonics that enhance their gins instead, while being low in sugar and calories. Hence the premium tonic water market has emerged.
“When you walked into a modern retail store in 2018 in an Indian metro city, you primarily found 1 option – a canned tonic water priced at ~INR 50 containing as much sugar as any soft drink. Today if you walk into the same store, you will likely see a full section of 4+ premium tonic water brands, available across a variety of exotic flavours, low calorie/sugar content, and priced upward of INR 80 for a 200-250ml glass bottle. The category and consumer preferences have rapidly evolved in just the past 2 years.”
In the UK where the tonic water category is more evolved than in India, the premium tonic water segment contributes to a massive 43% share by value of the total tonic water market. In India however, we estimate that the contribution of premium tonic in the total tonic water market is just ~10%. This shows the near future growth potential of quality and premium tonic water brands in India.
The total mixer market in India is expected to grow at a CAGR of 9% between 2022 and 2025, while the premium tonic water segment is expected to grow at a CAGR of 15% during the same period.
Popularity of low calorie/sugar tonic water: Today’s consumers are caring about the tonic that goes with their gins, and more and more people are wanting to prefer brands that do not contain artificial preservatives, sweeteners, or colours. Consumers are also increasingly aware of the waste-potential and non-biodegradable nature of PET bottles and want to purchase environmentally friendly products if given a choice. Younger adult consumers want to associate with authentic brands that strike an emotional cord with them and share similar values & beliefs.
We worked intensely on finalizing the tonic recipes that would appeal to the Indian palate, and on creating a contemporary brand positioning. Regular tonic water typically contains as much sugar as soft drinks, which is 8-9 gms per 100ml. Such a high dosage of sugar is added to mask the bitterness of quinine. However, PEER wanted to create a tonic that has superior taste but without the extra sugar and calories. This is one reason why it took PEER 1.5 years, 20+ blind tasting focus group sessions, and numerous ingredient combinations to perfect the flavour profiles while containing 50% less sugar than other mainstream tonics. PEER has gone a step further and even created a zero sugar and zero-calorie tonic variant for the health-conscious consumers.
As per Research And Markets, the Indian gin market is projected to grow at a CAGR of 9% between 2017-18 to 2022-23and as the Gin market is growing, so does the mixer/tonic market as consumers are wanting to experiment with their tonics. Also, if we look at numbers, Indian mixer category is currently worth INR 3,500 crores, projected to grow at a CAGR of 9% to reach INR 7,000 crores by the year 2030 and looking at this opportunity Lavanya Anand & Anant Jangwal started Peer Tonic water to tap the growing opportunity and consumer demand. “We have been tracking the recent growth and acceptance of premium gins and tonic, a trend that particularly picked up in the UK from 2016 onwards. However, it was only around 2019 that the premium gin and the tonic market saw an uptick in India,” shared the duo who started the brand in Oct 2021 by adding that Indian consumers were willing to pay a higher premium and want to experiment with a wider variety of gins. Additionally, consumers are now even caring about the TONIC that goes with their GIN. Excerpts from the interview:
Working on the concept
We worked intensely on finalizing the tonic recipes that would appeal to the Indian palate, and on creating a contemporary brand positioning. Regular tonic water typically contains as much sugar as soft drinks, which is 8-9 gms per 100ml. Such a high dosage of sugar is added to mask the bitterness of quinine. However, PEER wanted to create a tonic that has superior taste but without the extra sugar and calories. This is one reason why it took PEER 1.5 years, 20+ blind tasting focus group sessions, and numerous ingredient combinations to perfect the flavor profiles while containing 50% less sugar than other mainstream tonics. PEER has gone a step further and even created a zero sugar and zero-calorie tonic variant for health-conscious consumers.
Competitor vs target customer
Schweppes is a mass brand and a key competitor. It is the leader in the tonic water segment with deep retail penetration. A gradual shift is seen in consumer preferences as more and more users prefer low-calorie and low sugar tonics that enhance their drinks. There are other premium tonic water brands in the market that have emerged in the last 2-to 3 years. However, each brand has a different brand story and different flavor profiles. PEER has a differentiated brand positioning. While other competitors are positioned as classic brands, PEER is positioned as a contemporary lifestyle brand. Also, it is the lowest calorie tonic water brand in India, with one variant having zero calories and zero sugar.
Also, brands have done lots of innovation with local ingredients, hybrid materials, etc. Why so?
Premium mixer brands tend to not use artificial sweeteners, preservatives, or flavorings. Premium gin brands too are very experimental and use a variety of flavors and botanicals. This is because today’s consumers for the segment are more evolved than before and care about the quality of ingredients and the complex tastes a beverage offers. Today’s consumers are also environmentally conscious and prefer their beverages in glass bottles vs. PET/plastic bottles. PEER is a conscious brand that offers its consumers a re-use reward program to minimize its carbon footprint.
What are the different flavors available? How have you priced them?
PEER offers 4 flavors: Indian Tonic Water, 0 Cal. Indian Tonic Water, Bitter Lemon Tonic Water, and Mint Tonic Water. Each is priced at MRP 95 Rs. for a 200ml glass bottle.
Who are you targeting as your customer?
30-45-year-olds living in Indian metros are our primary target. They are typically ‘conscious buyers’ who are ‘buyers of the best’. When they drink with friends and family, it is because they want to socialize and have a good time. They are well aware of the different brands and choices in the market, and the authenticity of a brand is important to them.
High on expansion
PEER is available in leading modern trade stores in Delhi NCR such as Le Marche, NEEDS, Modern Bazaar, Natures Basket, and top general trade stores. PEER is also available in Punjab and Uttrakhand and will be entering Mumbai, Pune, Bangalore, and Kolkata in the next 15 days, and in Goa & Rajasthan by February end. We also ship pan India via the company website, and online platforms like Amazon, Flipkart & other beverage marketplaces. In its first month since soft launch, the brand sold 6,000 units of its tonic water, growing at 15% month-on-month in sales revenue
PEER aims to be in 650 outlets by end of 2022 and is also in conversation with VCs for funding and is looking to raise funds for additional innovative product launches and aggressive market expansion.
The pandemic brought many challenges and forced beverage brands to have a different outlook towards their business model. These days’ people do not just look for a brand; rather they connect it with a story, emotion and relate it with an ongoing change. According to experts in the beverage sector, consumers who appreciate a product borne out of labour of love are willing to pay a premium where it deserves. Hence, today it is no more just about opening or launching a beer brand, you need to indulge in personalization, premiumisation and localization of the product. Here are few of the learning since not just the pandemic, but since the launch of top beverages brand in the country:
Also Read: 'Indian inspired cocktails' to be the key beverages trend to look out in 2021
Category creation takes time: Brands are not born over night. One needs to have a proper research and be patient when looking for a long term orientation. For ex: if you want to launch a gin brand, you will have to research well about the market, customer, backend etc before setting up a factory for the production. As we see Goa becoming the top hub for gin brands in India.
Selling the brand idea to the trade is as important as selling it to the consumer: You should not just focus on customers but you need to also create a B2B presence for it. For ex: if we look during the pandemic, it was impossible for brands to cater to restaurant and bar customer; it was only through multiple trade channel that they could reach out to multiple customer.
Creating a community of brand lovers is valuable: there is no denying that repeat purchase and word of mouth is gold. If you really want to get success in whatever you build you need to create customers who love your brand, offering and who is loyal to you. As per research, brands that have come back or repeat customers have very less record of failures.
Consumers are willing to co-create a brand: 58% of businesses are now piloting co-creation projects to help drive innovation. Customer co-creation means inviting customers to participate in a design or product ideas, ways to market etc. It can have a lot fun, learning exchanges like influencers promoting your brand on social platforms etc.
May Interest: Why Indian consumer is welcoming non-alcoholic beverages trend
Packaging has to be quirk: Brands must over-invest in product and packaging because they are the biggest drivers of adoption and referral. As we move ahead with pandemic as normalcy, customers are welcoming and are attracted to brands who are offering a top notch packaging.
Unfortunately with the restrictions of lockdown in the past year and a half, people have had to stay indoors in the comfort of their homes. This led to people coming up with unique ways to create experiences within. The trend of ‘at home party’ is one such experience.
With some cities still on night curfews, and others possibly following suit, home parties are bound to be the flavour of the season especially until the Covid situation subsides. People are now socializing with smaller groups of friends and family at home giving them a more premium experience. People have been serving premium spirits but unfortunately, there was a dearth of mixers with which they could create good quality ‘Bar cocktails’ with. And while adding carbonated sodas to drinks is the preferred choice for many, organic mixers with natural and unique flavours are now growing in popularity.
Also Read: घर पर पार्टी का ट्रेंड भारत में कॉकटेल मिक्सर की मांग को बढ़ा रहा है
Cocktail mixers or Tonic water is however not a new connotation in India. Back in the 19th century in India, the British had prescribed an unpalatable medicine called quinine to the Indian army to help them fight malaria. But given the bitter taste of the powder, the soldiers started mixing it with soda, water and sugar. And that’s how Indian tonic water was invented. Over time, some soldiers decided to start adding a nip of gin or whiskey to the mix, giving rise to the trend of flavoured mixers, which until now was mostly restricted to bars and restaurants.
Bringing Bar Home
“The past two years have been very exciting for the cocktail mixer space in India. Entrepreneurs have come up with unique drinks and mixers that compliment spirits and help people create cocktails that you would have at bars. Companies have been able to leverage the D2C ecosystem to bring these mixers closer to consumers at home. This has also played a pivotal role in improving the ‘at home party’ experience,” Angad Soni, Founder of Sepoy & Co. commented.
Premium botanical mixers and drinks company, Sepoy have seen a 5X increase in sales during the pandemic when it started in March 2020. The company was able to provide the mixers to consumers via their website and marketplace like Amazon. According to Soni, consumers did not stop drinking during the pandemic but rather started drinking better. “They wanted bar like cocktail experiences and we are happy we could give our consumers high-quality mixers to enjoy their spirits with,” he said.
While cocktails have seen an increasing interest and demand at bars over recent years, their home consumption has been muted, as recreating complex recipes at home was a cumbersome task for most. Also, there was a weariness set in with the mixer options consumers had at hand, limited to sugary colas, juices and soda.
Easily accessible
Ankur Bhatia, Founder and CEO of Jimmy’s Cocktails feels that as consumers migrate to premium spirits, there is also a desire to upgrade the mixers that complement them. This latent demand is why consumers have been quick to try and embrace homegrown mixer brands that have burgeoned in recent years.
“The variety of cocktail mixers available now are giving consumers a wider playground, and the ability to pour some exotic concoctions at home without the hassle of gathering multiple ingredients, purchasing special bartending equipment or the need for mixology skills. Social gatherings centred around enjoying gourmet cocktails will be a trendsetter in the near future,” Bhatia stated.
While the company took its first steps into retail in early 2020, the retail business environment was plagued by the pandemic. However, Jimmy’s Cocktails took the opportunity to accelerate its D2C operations and initiated online orders through their website and a few other popular 3rd party platforms. “The enthusiastic response we received for our products forced us to scale our supply and set up a larger manufacturing facility mid pandemic,” Bhatia commented.
This was a clear indicator of a trend, of a new age drinker with a more evolved palate, thirsty for more interesting options to top up his spirit, and hence an opportunity for products that enhance the home drinking occasion. In less than a year, Jimmy’s has served over 1 million cocktails across India and scaled its presence to 2500 retail outlets and achieved 20x growth in revenue. The online sales channel, comprising primarily of the website have allowed the company to deliver Jimmy’s to over 400 cities in the past year.
New scope of expansion for companies
Svami Drinks has recently launched a range of non-alcoholic ready-to-drink beverages as an alternative to spirits. The first three products in this line are non-alcoholic Rum & Cola, non-alcoholic Gin & Tonic and the non-alcoholic Pink Gin & Tonic. “We have created a range of mixers to elevate the daily drinking experience of our consumers. As for our non-alcoholic ready-to-drink beverages, we have always believed that you do not necessarily need to have alcohol in a drink to make it complex and enjoyable and that’s what we have created with this new range,” said Aneesh Bhasin, co-founder, Svami Drinks.
With stay-at-home orders being extended across the country and no sign of bars coming back soon, cocktail-loving Indians will have plenty of time to refine their techniques and enjoy the fruits of that labour.
It all began in 2014 in Somerville, Massachusetts when Siddharth Sheth was living alone and was in need of a hobby, he found a calling with everything, food and drink. “I spent the weekends frequenting bars and taprooms in and around Boston, Cambridge & Somerville. As luck would have it, I started trying the ciders on tap and fell in love with them,” shared Sheth by adding that one of the very first ciders that caught his taste buds and fell in love with the notes was the one that gave birth to everything we see here today. That cider was Bantam’s Wunderkind. “Soon after, I sent a handwritten note to the founders at Bantam Cider, requesting them to accompany me in the mission to bring all-natural, craft apple ciders to India,” he added who wish to stick with the ethos that anything worth doing is worth doing well. Excerpts from the interview:
Also Read: 'Indian inspired cocktails' to be the key beverages trend to look out in 2021
Why Thirsty Fox?
When it came to choosing a name for our ciders, I went with Thirsty Fox. I drew inspiration from foxes, who have an uncanny ability to seek out and steal the best apples from orchards. And that's how only the best and hand-picked apples are sourced from family-owned farms in America for our award-winning Ciders. The cider category is non-existent in India. As leaders of the category, we aspire to grow the category to rival someday that of ciders in other markets such as the US and UK.
What legality you went through as you were the only fruit-based cider manufacturer in India?
When we launched ciders in India in late 2019, the category of fruit-based wines did not exist. We had to work with the Excise department in Nashik and Mumbai to help define the class of fruit wines made from fruits other than grapes. Today, that persistence has paid off, and a fruit wine category is included in the taxation scheme in Maharashtra.
You launched the brand in Nov 2019, and soon the pandemic hit the world. How have you marketed yourself during such a situation?
Our initial plans were to do many on-ground activation and introduce the brand through bars and restaurants. Unfortunately, with the onset of the pandemic, bars and restaurants were the first to be affected. The pandemic has forced us to pivot to primarily selling through wine shops across the city. To reach our consumers, we are investing in digital and social media marketing. We are also actively engaged in collaborations and partnerships with restaurants that are focusing on home deliveries.
What’s your presence? Do you also supply to restaurants?
Currently, we are available across select retail outlets across Mumbai, such as Foodhall, Santa Cruz; Haiko Supermarket, Powai; Living Liquidz, Hops Cork, Bandra and others. We are also at Dorabjee’s in Pune. We had just started our HoReCa footprint when the pandemic struck and led to a complete lockdown.
We see lots of innovation being done on the craft side- be it fresh brews, natural products or local ingredients. Why so? How does the market look like?
Driving the resurgence of small scale craft products is an evolving desire to consume consciously. Consumers are looking for brands that they can relate to, admire and feel a sense of shared purpose. Driving the trend is the inherent human tendency to do good which now manifests in the sustainability movement.
Also, with evolving tastes, today’s consumer seeks choice and variety in everything they consume. It so happens that some of the more prominent brands have been slow to respond to the changing consumer preferences which we are seeing evolves at a rapid rate in India.
Where are these ciders produced? From where do you source the ingredients?
We manufacture our ciders at our facility in the winemaking region of Nashik, Maharashtra, at a production capacity of 1.2 L cases per annum. Our manufacturing process emphasizes using all-natural ingredients, fermenting at low temperatures, and ensuring strict hygiene and sanitation conditions. Our method of making ciders follows the traditional, small-batch cider-making process.
We import some of our ingredients from the US and Europe, while India is where we source our spices.
What is the shelf life of these ciders? How have you priced them?
Our ciders are shelf-stable for at least a year if stored in a dark, cool place. Our ciders, like any natural product, taste freshest when consumed as quickly as possible. We have three all-natural, award-winning ciders in our portfolio; they are Izzy, Reed and Kipp. Each one is unique in terms of its aroma and flavour profile. Thirsty Fox Izzy is a golden summery cider delicately balanced with a hint of citrus honey to create an easy-drinking and gluten-free cider. It has an alcohol content of 6% ABV. Thirsty Fox Reed is a beautiful ruby red cider conditioned with cherries and peppercorns to create a unique semi-dry cider. Reed is gluten-free, vegan and has an alcohol content of 5.4% ABV. Izzy and Reed are priced at Rs 300 for a pint of 330ml.
Thirsty Fox Kipp is a juicy, unfiltered cider with a bitter-sweet complexity. The freshest batch of hand-picked apples is slowly fermented with a proprietary blend of hops and blended with cold-pressed apple juice. The result is a cloudy, fruit-forward cider with heady tropical aromas and a lingering finish. Kipp is gluten-free, vegan, and has an alcohol content of 5.5% ABV. Kipp is priced at Rs 350 for a pint of 330ml.
High on expansion
We want to become known as the craft cider brand in India. And so our aspirations are hopefully by the end of this year or early next year to make inroads into some of the other markets, primarily the metros—including Bengaluru and Delhi. But we also think that there is an excellent opportunity for travelers coming into Goa to experience the product.
We are also looking at expanding beyond the shores of India, starting with the US and UK, then Western Europe and East and Southeast Asia. As the market for ciders is still at a nascent stage in India, we are looking at an international footprint to keep generating business with revenues and distribution channels.
Who do you see as your target customer?
Our target consumers are both men, women who are early-mid career. They are also fiercely independent, affluent, and socially versatile. A well-travelled consumer is also one who is curious and is an avid back label reader. We do well with a consumer who is seeking out new experiences. We design our ciders to cater to the palate of both novice drinkers as well as to connoisseurs.
Must Read: The rise of Fruit-rich and not flavor-rich beverages: Trends to watch in 2021
Top beverages trend
We are starting to see a few trends shaping the Indian market. The first and largest one is the continued premiumisation of the market. Consumers today are more than willing to pay a premium for a good quality product and a brand that delivers value. The other big trend is that of no-low alcoholic beverages, with consumers opting for products containing no alcohol or very low quantities of alcohol by volume. This trend is driven by a desire to moderate consumption and lifestyle choices that more consumers are making.
The founders at Stranger & Sons are not just cocktail enthusiasts but also had access to observe the beginnings of the gin revolution first hand. “I was working towards my MBA in Barcelona, while Vidur was studying in the UK and Rahul had just set up his craft brewery in Mumbai,” shared Sakshi Saigal one of the Co-Founders who was tasting and drinking a variety of gins every day. “Whether in London’s cocktail bars or the gin tonics of Barcelona, we were getting well acquainted with the gin landscape. That’s when it piqued our interest as to why India wasn’t up to speed with Gin although Gin manufacturers all over the world looked to India when it came to sourcing botanicals and we kept encountering brands based on a vision of India that we knew very well had never been a reality,” she pointed as the trio joined hands and started Third Eye Distillery in 2018 that manufactures Stranger & Sons Gin in India. Excerpts from the interview:
The ‘Gin’ Revolution
There is indeed a shift that has happened with consumers themselves leaning towards more creative choices. Today, we see a lot of Indian consumers excited to try a good homegrown product without it being a compromise and brands like ours are able to communicate and ensure high quality standards. Though its presence in its current form is limited to the main metro cities, Gin has definitely caught the attention of consumers in India. It’s going through an extremely exciting phase and still transcending into the mainstream. There aren’t just new consumers every day but new Gins too!
Also Read: How This Gin-Brand is making it to the globe during the pandemic
What all have you focused on when coming up with the best gin in the market, be it ingredient, pricing, packaging and production?
When we started, the three of us got together and began by collecting and tasting, somewhere in the ballpark of 400 different gins, trying to pick on the nuances and styles that we liked the best. The one thing we knew is that we wanted to create a robust gin with distinctly Indian botanicals, but again without any cultural appropriations to the flavour profile. However, unlike the gins made in one of the European countries, we had the problem of abundance when it came to botanicals- with so many amazing herbs, roots, spices and citrus to choose from and so much at stake, we found ourselves overwhelmed. Once we had our knowledge in place and gin ready, we had Dimi Lezinska (Head of Brand Advocacy & Partner), with his extensive experience and expertise to guide us through the final stages of tweaking and tasting the gin in a precise and meticulous manner until we perfected the recipe of the strange and spectacular spirit we had hoped to make.
Stranger & Sons is a three dimensional gin, where the distiller’s exactness and precision are paramount to getting the flavours right in one go and ensuring that we are able to extract the most subtle flavours of each of the botanicals. Our unique citrus peel mix of Indian Bergamot, Nimbu (Indian Limes), Nagpur Oranges & Gondhoraj Limes, representing different parts of the country, gives our gin a beautiful freshness on the front palate. The local pepper, coriander and mace gives it a strong spiced middle while liquorice, cassia and nutmeg gives it a lovely, warm sweet finish.
What is the average produce of the gin?
From the time we started the distillery in September 2018 up until the end of last year, we have produced around 600,000 units, which isn’t a simple feat for a craft spirits producer. The response was phenomenal across our domestic and international markets and as we expand to more markets and regions, we expect this number to grow significantly.
Vocal for Local
With today’s consumers gravitating towards local, homegrown produce and with people becoming more mindful of their impact on the environment, a handful of brands have shifted their focus to sourcing local ingredients and supporting local industries. As people slowly put aside their bias towards foreign products, local brands and produce are starting to flourish. Our move to Goa, with its lush expanse of spice farms, to set up our distillery gave us the ideal playground to experiment as we worked on perfecting the recipe for our three-dimensional spirit.
What’s your market presence? Do you also supply to restaurants and bars?
We launched Stranger & Sons from the shores of Goa and expanded to Maharashtra, Delhi, Karnataka and Rajasthan within India and UK, Singapore, Thailand and the UAE, internationally. This year, despite the pandemic, we will be focusing on domestic and international expansion.
We’re available in various restaurants and some of the best cocktail bars including Happiness Forgets, Kwant, Gymkhana, The Cocktail Trading Company, Milroys of Soho etc. in London. In Singapore, we are available in Tippling Club, Manhattan, Atlas, Native, 28 Hong Kong Street and The Old Man. In India, The Table, Woodside Inn, The Bombay Canteen, O Pedro, Joseph Bar, Gunpowder, Project Cafe etc., to name a few.
We’ve worked on some interesting collaborations with our various partner bars and restaurants in the past. It has been an extremely tough phase for the hospitality industry ever since the pandemic and we hope to work with and support the trade as soon as we can, once the current situation in the country stabilizes.
Which is your biggest market in terms of selling more bottles?
With regard to sales, we sold 25,000 nine litre cases in our first full year of operations, which was extremely exciting for us and was mainly attributed to being available in just two Indian cities and one international market. Our bigger market would indeed be our domestic presence (70%) followed by our international markets (30%) but we are expanding in both areas.
This year, despite the pandemic, we’re looking to grow by at least 150% YoY, coming from our new markets, domestic as well as international, where we aim to place spirits from India on the global map and change the perception of Indian spirits.
What was the biggest innovation you did as a brand in 2020 to stand ahead of the game?
During the lockdown, we launched India’s first distilled cocktail - Perry Road Peru, in collaboration with the team at The Bombay Canteen with the idea of growing India’s cocktail culture. Twice a year Bombay’s streets are lined with loaded carts of guavas ‘perus’ and considering how much the city adores it, the peru played the perfect muse for us to capture Bombay’s spirit. Being two India-proud enterprises, Perry Road Peru was an expression of our love for local and seasonal, a celebration of the city and an opportunity to introduce India’s gin enthusiasts to something exciting and innovative. It was welcomed with open arms as a unique expression uniting the potent peru and the 9 Indian botanicals in our gin. What was planned as an interesting experiment became a massive success - where 6000 bottles were sold out within 6 days!!
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High on expansion
We will indeed be exploring various domestic markets including Telangana, Uttar Pradesh, Assam, and more. In terms of international expansion, we look forward to increasing our global footprint through our upcoming launches in Australia, Mauritius and more, very soon. Each new market brings a unique, diverse consumer base which makes the experience, well, let's just say thrilling!
Holding a glass of cola or hard liquor at a party isn’t fascinating anymore to a majority of the millennials in India. The soft drink industry is in dire need of new options which are refreshing and can tango with Indian youth.
The non-alcoholic market is already fairly large, it is almost 50,000 crores and definitely growing but there are also a few reasons that the non-alcoholic beverages acceptance and trend of consumption is increasing over the years. According to a recent report released by ResearchAndMarkets.com, the growth of the non-alcoholic beverage market in India can be attributed to rising awareness about healthy lifestyle and wellness, rising disposable income and an increasing number of people consuming soft drinks and juices with their meals.
Rise of the homegrown brands
Today, we see a lot of new players that have come into the market, whereas, earlier, there were only international giants acquiring larger shares in the market. Brands like Shunya have evolved to capture the millennial’s taste who are getting more inclined towards guilt-free consumptions. “We have taken it to the next level by not only making it guilt-free but by adding a lot of antioxidants, vitamins and made them healthy, with such kind of options being available people are definitely more carefree and everyone wants something other than water to quench their thirst,” shared Siddhesh Sharma, Founder & CEO of Naturedge Beverages Pvt. Ltd.
Moreover, marketing activities by leading brands, including endorsements by leading film stars, is also driving non-alcoholic beverage consumption in India. Recently, Shraddha Kapoor announced the partnership with Shunya.
Companies offering varities
According to Statista, the market is expected to grow annually by 9.01 percent (CAGR 2021-2025). As per a recent survey conducted, 81 percent of the Indian consumers stated that they are bored of Cola drinks and are open to new options. Several no-alcohol beers, low-alcohol and low-sugar beverages have hit the market lately.
Brands have also been experimenting with creating non-alcoholic clones of popular alcoholic drinks like gin and tonic, and rum and Coke. Svami is one such brand. “Before we launched our products, the only non-alcoholic drink options would be the regular Coke and Pepsi products, packaged juices and iced teas but nothing that is complex like a good cocktail. Taste is key, irrespective of the drink being alcoholic or non-alcoholic,” Aneesh Bhasin, co-founder, Svami Drinks commented.
Svami Drinks has launched three varieties in the RTD Non-alcoholic range namely Gin n Tonic, Pink Gin n Tonic and Rum & Cola. Pink Gin & Tonic has been well received by the customer and from the industry.
Alcohol brands embracing the change
According to research by Mintel, 38 percent of Indians wish to switch from standard-strength beer to low or no-alcohol versions. This trend is especially prominent among younger consumers in the 25-34 age group, 41 percent of young beer drinkers are willing to switch to low or no-alcohol beers.
Joining in the business opportunity, United Breweries, the makers of Kingfisher beer, have launched two non-alcoholic beverages. Kingfisher Radler is a malt and fruit juice mix that was introduced in 2018 in India. While Heineken 0.0 was launched in 2019 and is a non-alcoholic beer. AB InBev, the makers of Budweiser beer, also tried their hand into the non-alcoholic beer segment in 2019 with Budweiser 0.0 and Hoegaarden 0.0.
Considering the changing consumer preferences, companies like SALUD Beverages are gearing up to launch the non-alcoholic beverages range soon. Ajay Shetty, Founder-Director of SALUD Beverages feels that for the young drinkers, it is much about artificial vs non-artificial, not alcoholic vs non-alcoholic.
“So if a drink falls in the space of fresh, preservative-free, easy to drink and easy on the pocket, it will hit all the right spots with them. And this is the idea behind all Salud's offerings, really. Our focus is offering top-notch flavourful casual beverages that are easy and ready to drink, that you don't have to think twice about when enjoying a sip,” he commented.
In creating these drinks, sustainability and local produce are trending, classics are making a comeback with reinventions, and fresh’ is the word of the hour, with a focus on glassware and presentation.
Alco-bev as a culture is constantly on the move. While it’s hard to generalise a single direction in which millions of consumers are moving, something we have noticed is that those under-30 are starting to choose quality over quantity. Effectively, they are drinking lesser (in quantity and frequency) than before, but are making a conscious effort to drink better quality beverages. Excerpts from the interview:
When we look at the gin market five years back, we see that only a few or 5% of the crowd would actually have an interest in gin. What has brought sudden growth?
Improved choice and accessibility to locally produced craft spirits has fuelled this culture shift. This is definitely not the isolated cause. Our increasingly globally mobile consumer base in India has been experiencing the beverage trends across the globe and has obviously recognised that Gin is a spirit which has been making its way back to the spotlight over the past decade.
You started Nao spirits in 2015 looking at the global trend. How do you see the market now?
Things were looking up in 2015, but the Indian market was still untested at that point. Things are still looking up in 2020 - the only change is that we now know that India does hold a great potential to be a Gin-quaffing nation.
We see that gin has become a part of top restaurant and bar menus now and people have replaced wine and whisky with gin. What are some of the benefits of gin?
Gin seems to be very well suited to our climate and our palate. We live in a tropical country where for the most part, it is hot and humid. A tall glass of Gin & Tonic as a refreshing and light drink seems to be the perfect fit to our climate. Throw in our penchant for oily, spicy foods, a drink which is able to cut through that and cleanse the palate with each sip should be most welcome. It’s not really a surprise that Gin & Tonic was invented in India - this is its second coming and we feel it will be truly impactful!
India is one of the complex countries when it comes to liquor consumption. What all legal hurdles you had to go through when it comes to both import and export of your product?
The hurdles are endless. We are absolutely happy to have found ways to navigate the complexities of the excise systems in India. It has taken a long while and a lot of patience to come this far and we are sure it will take even more going forward.
You are present across 8 cities in India and around 14 countries in the world. What did it take to build a global liquor brand?
Brand building is an on-going process. It’s a journey we are still only at the starting of. So, it might be a little early to answer this. From our perspective we are simply making sure we put our best foot forward, hence we focus on quality at all times and build on our authenticity which we are very proud of.
What is your expansion plan?
We would like to see both our Gins spread further across the map of India as well as the world. This year, we are looking at adding Haryana, Rajasthan, Assam, Meghalaya and Arunachal Pradesh to our Gin Universe.
Who do you see as your competitor in the segment?
The Gin category is too small for in-fighting just yet. While there are new players coming into the category, we still look at the beer and wine categories as direct competitors. While the drinks themselves are not too similar to each other, they do share a similar space and are often presented together. This is why we have seen a lot of first-time Gin drinkers having previously preferred Wine or Beer as their drink of choice.
Tell us about your learning during the pandemic?
We learnt to sit back and take time to look at the business from a very macro perspective. We tried to understand what had worked well for us and what we needed to focus on. It’s an exercise which was massively beneficial and one that we hope we are able to make into a practice even after the end of the pandemic.
Sonal Holland MW, while speaking at India Wine summit 2019, stressed upon the importance of formal wine education for F&B professionals through forums such as WSET (Wine & Spirit Education Trust). Sonal called wine training an ‘investment’. “It’s an investment that pays. When people are better informed, they will perform well,” she said.
“WSET did a survey of businesses on employee training. The findings of the survey show that 100% of businesses believe training has helped in better job performance. 93% of these said that it led to employee satisfaction and over 90% of these businesses said that training led to more profitability. This is the global scenario. On the home turf, there is an increase in the enthusiasm among restaurateurs and wine traders on training but still, many of them have a reluctance to spend. As a result, there tends to be an over-reliance on the producers and suppliers to provide such training,” Sonal said.
“The general thought of the industry is that if I train my employees, it will affect them negatively in the turnover which is contrary to the global survey,” she further added.
Speaking on wine education among Indian consumers, she said, “I have come across many people who would not know much about wine except red and white.” She noticed that, initially, people were ready to spend more money on single malts. “We have to look beyond, and see who the target audience is. As the ambassadors of the wine trade and custodians of the wine culture, we need to make our consumers better informed. We need to be better equipped. We need to get that effortlessness in the wine culture. Right now, we are too conscious as we are putting too much effort in promoting wine in our country rather than educating people about it.”
In addition, wine connoisseur Madhulika Bhattacharya, was of the opinion that knowledge of wine at the very basic level is a must for consumers at the grass root level in India, like what it is in France, where Tristan De Lomenie said, “Wine is such an integral part of culture and lifestyle, that formal wine education can be fairly redundant.”
The India Wine Summit concluded successfully on a wine-drenched note recently at The Pullman, Aerocity. The theme of the summit was The Game Changer and the event took the audience through three back-to-back Industry Round Table sessions with illustrious names from the wine producing industry, F&B professionals, wine importers and promoters.
The Industry Round Table III emphasized on the industry-government interface and the regulatory challenges for the Indian wine sector. The opening address for this session was delivered by Yatin Patil, President, All India Wine Producers Association (IWPA). Yatin spoke about the challenges faced by producers in India since as early as 1949. Other panellists consisting of Rahul Singh, Aman Dhall, Arun Kumar, and Uma Chigurupati were mostly united in expressing a few key concerns such as non-uniformity of excise/tax laws need to de-link the wine business from alcohol and spirits’ business; need for FSSAI standardization; support from the government on issues such as online wine sales;and increased levels of support from the FSSAI for small, independent producers.
No season for drinking this light, frothy beverage
Gone are the days when beer was only a drink for the summers. The age of the uber cool is in and beer by the mug and beer cocktails are something people now like to consume all year round. The reasons are more than one though. It’s not just the people want to look or seem ‘cool’ but it’s now about what you truly like to drink, rather than what one should be drinking at a particular time or weather. With the mushrooming of microbreweries across Delhi/NCR, new entrants like Hite and many other imported beers, and a booming social life, there’s a lot more to this beverage that meets the eye.
Whether people are enjoying a pint at the local bar or sharing cans at a house party, beer is a very social drink. Today, more and more choices are available in this ever growing marketing that consumers can pick from, whether it is men or women. People are becoming more conscious of their choice and prefer drinks with low alcohol content. With so many different flavours of beer out there, there is something for everyone!
Indeed, a chilled pint is just perfect to spread that all round warmth and cheer!!
Also Read: Home-Grown Concepts Impress Consumers, Says Fruzzante Founder Priyanka Save
Changing Trends and Tastes
With more and more people becoming global citizens, people now know what they want to drink and they are far more aware of flavours today than they ever were.
Speaking to Restaurant India, Pradeep Gidwani, the owner of the Pint Room and the ex-co-founder of The Beer Café, says, “Ten years ago, one could only get standard, lager style beers in India. Today it is fantastic to see the availability of wheat beers, Dunkel Weiss beers, Trappist beers, amber ales, stouts etc. From about 20 to 200 brands now the consumers have a wide variety. This has led to experimentation and the Indian palate is evolving. A few years ago who would have thought that sushi can sell in India, similarly the Indian palate for bitter, beers is evolving. We are getting more mature with our tastes. Women are trying new styles of beers.”
Must Read: Healthy Alcohol, Premium Rose - The 2019 Alco-Bev Trends To Watch Out For In India
Sudhanshu Tyagi, Brew Master at Prankster, says, “Craft beer shoppers choose according to a wide variety of factors, from complex flavour profiles to alcohol content. Recently, a new trend has caught on: choosing beers by the season. Craft beer lovers are more aware than ever of which brewery is bringing out which product. They know of the regular seasonal beers as well. Generally, beers are light and refreshing; winter beers are often dark and complex; and other seasonal brews are driven by seasonal ingredients, which typically become available during different times of the year.
With more and more people becoming global citizens, people now know what they want to drink and they are far more aware of flavours today than they ever were.
Nishant Grover, Head Brewer at Molecule and Drunken Botanist, feels that as a food technologist-cum-brewer, it gives him an open mindset about different combinations of the brew. As Nishant says, “It’s true that people's tastes are changing. With the upcoming trend of craft beers, people are getting more and more in the beer and the complex experience around it. There are so many flavours to be discovered in this wonderful drink.
Seasons for Beer – Common Misconceptions
As per, Pradeep Gidwani, “In Europe with minus temperatures, beer still accounts for over 70% of all alcohol consumption and it is good to see the same beginning to happen in India. People drink beers in winters. It is a casual every day meet up drink rather than just a beverage to have on warm winter days. Clearly, we see that at The Pint Room, where winters are our best months.”
“Another common misconception is that women are not beer drinkers. In fact, almost 50% of our clientele is women. We have women-only groups coming in for beer all the time at The Pint Room,” Pradeep adds.
Nishant says that “A common misconception about beer is that - it is a summer-time drink only. This is true in case of a cold pilsner but definitely not for dark beers like stout or triple IPA, since these pairs best with warm dishes that one likes to eat in winter.”
“I want to promote the use of local ingredients by introducing them in my infusions, like aam panna beer, paan gulkand, and a range of others. In Delhi NCR, however, the majority of the people like wheat beers (Hefeweizen, Belgian wit, etc). Also, the demand for fruit infused beers has seen an increase these days since people are far more inclined towards experimenting with their palates.”
According to Sudhanshu Tyagi, “The flavour of darker beers is also heavier so they fit better during winter, and comparably higher alcohol and intense flavour fit during the colder weather. Just like other types of alcohol, beer can give you a nice buzz. But beer is typically relatively low in alcohol content, around 4-6%. This is great because it reduces the risk that alcohol will sneak up on you and leave you wasted. On the other hand, various festivals and beer fests like Oktoberfest, Halloween nights, Dussehra, Diwali, Christmas, New Year, Valentine's Day, and others have increased the consumption of beer in a big way.”
Fruzzante is the world’s first and only producer of alco-bev made from chikoo (Sapodilla) extracts. Conceptualized in 2010, the brand is the brainchild of Priyanka Save and her husband Nagesh Pai; the entrepreneur couple has a background in Mechanical Engineering. Under their leadership, the brand has produced more than 25,000 bottles since the wine’s launch on the New Year’s Eve of 2017. The brewery is part of their family’s Hill Zill Resort in Bordi, 25 km from Dahanu, and was instrumentally aided by Dominic Rivard, an award-winning winemaker and cider specialist, from Nova Scotia, Canada.
Fruzzante was awarded a silver medal at “Drink Outside the Grape” challenge 2017 held in the USA where they were pitted against 145 wines and ciders of the world.
In an interview with Restaurant India, Partner and Founder at Hill Zill Wines and Fruzzante, Priyanka Save speaks about the world’s first brand to make cider style alcoholic beverage from chikoo.
Fruzzante is the world’s first to make cider style alcoholic beverage from Chikoo. How did you come up with the idea? Why chikoo?
The genesis of the idea untwines the hands of time to my childhood days. I was raised in the chikoo orchards of Dahanu-Gholvad, hence the significant affection for and intimate bond with farm-grown fruits. Things took a turn for the worse when a seed borer disease severely affected the chikoo market in 2004. Farmers’ hands were tied, and they resorted to cutting off the plantations. That struck a chord amongst the entire region, which was the moment that our quest for recognition was coupled with the ardent desire of revival. Hence, our initial idea was to process chikoo in a package-able form. On arriving at the conclusion that it is in the nature of the fruit to ferment, we proceeded to brew a cider-style alco-beverage.
What makes the Fruzzante products different from that of other alcohol beverage players?
There’s a stark difference between Fruzzante and other players because we are the world’s first and only producer of a cider-style alco-beverage made from chikoo/sapota. We are in turn the only company producing fruit-based and non-grape bottled products in the wine category that is, currently, commercially available. We are both vegan and gluten-free which makes it a healthy choice as well.
In addition, Fruzzante products are also unique in the sense that they are all home-grown with our brewery set up in the family’s Hill Zill resort in Bordi, 25 km from Dahanu. Apart from intending to glamorize the cider and fruit industry, we earnestly work to put out local farmers on the map.
By far, which beverage is people's favourite?
Even though we have other variants in the gluten-free range like Pineapple, Mango, and Spice Garden (Cinnamon, Ginger and Honey), our flagship cider-style alco-beverage made from chikoo is still the most favoured of the lot.
Your business model to reach out to more customers?
In order to reach out to more customers, we envision working with several other fruits while maintaining quality standards. We have currently four varieties of Fruzzante and we are planning to add newer fruits under this brand. We also have a sparkling white wine from Starfruit blended with grapes under the brand name JIWA and a premium honey dessert wine or mead under the brand name ARKA.
In addition, people are looking for authenticity in the products they use because they are being bombarded with adulterated ones. We, therefore, strive to represent honest producers who understand the need of the market and bridge the gap through authentic, unadulterated, and tested products. As a home-grown brand, we bring the traits of understanding, compatibility, and reliability to the table.
How do you price the products?
The wine MRP is Rs 255 for 330ml. The cost is also considering the 100% excise duty applicable on the product, unlike grape wines that are duty-free in Maharashtra. Also, 20% VAT is applicable, unlike grape wines that enjoy a 16% rebate. We have approached state governments several times to treat all fruit wines as equal and be given the same benefits as grape wineries enjoy. However, we await an answer on the same.
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Where do you source your ingredients from?
As mentioned, our wines are brewed only with local produce obtained from the farmers only. Our labels indicate the location of the fruit procured. For instance, chikoo is procured from Dahanu-Gholvad while pineapple from Dodamarg-Sindhudurg all located in the Konkan region of Maharashtra. The farmers are active participants in the entire process and we recognize their efforts by mentioning them on our product labels.
Your expansion plans?
Apart from tying up with a few distributors to make a good distribution network in Maharashtra, we further envision working with several other fruits in the future while striving to maintain quality standards. We are looking to add strawberry from Mahabaleshwar and oranges from Nagpur soon.
Key challenges you faced initially with Fruzzante?
We, initially, found chikoo to be a laborious fruit to attract in the market; there were problems of high pH levels, uneven ripening and low shelf-life. Chikoo is immensely dissimilar to fruits like grapes which ripen naturally and harvest easily. It rather requires controlled environments, and hence we resorted to ripening in chambers that control the natural ripening process as opposed to non-organic means. The benefit was uniform ripening and better quality of juice, thereby, resulting in a quality product.
We invariably faced several challenges in terms of processing the fruit where our experience spanning over a decade in Mechanical Engineering came to the fore. We also implemented sustainable means for cost savings which include north facing stilt levels (least sun exposure) for winery location to ensure less cooling load resulting in power savings. The further implementation of ozonators helped maintain hygienic and sterile conditions in the facility to keep the products free from unwanted bacteria and viruses.
There were also challenges in packaging the highly perishable fruit, which was eventually solved with the help of a fully automatic bottling filling machine. This enabled appropriate and efficient rinsing, filling, and capping of the bottles. Therefore, the bottling along with our air-conditioned storage facility helps maintain comfortable temperatures for product storage.
With all the challenges we have faced, we haven’t relinquished or compromised on our stance of placing quality before anything else; a vital element in any process.
The key challenges you foresee and how do you plan to cope?
The key challenge is to compete against the grape wine industry that enjoys 100% excise duty exemption as well as VAT rebate. Due to tax implication, our cost is higher as compared to a grape wine of a similar nature. The USP of our product that it’s made from actual fruits without the use of colours or flavours attracts the consumers. We are in talks with the government for extending the same tax holiday that the grape wine industry enjoys.
Your take on helping the native Warli Tribe?
Fruzzante is a brand that is socially aware as it is innovative. We never fail to understand the vital role played by the native Warli Tribe. Apart from promoting native growers by mentioning them on each product, the proceeds from the sale of the special “Starfruit Jiwa” flavour of the drink are contributed for the well being of the native Warli tribe. They deserve immense credit for their perseverance and efforts in reviving the chikoo market.
How do you see the concepts like Fruzzante for the Indian market - in terms of customers and consumers both?
Authenticity, reliability, and quality are the core aspects consumers are either consciously or subconsciously seeking in today’s market. Hence, more home-grown concepts built on these three pillars are likely to impress them and, thereby, garner recognition. The modern market is much more inclusive of audiences than it was perhaps a decade ago, with more emphasis on individual experience rather than aggregates. Hence, it would bode well for new players to derive something meaningful and take the consumer through an engaging journey.
The Indian alcoholic beverages industry is growing at a gradual pace. As compared to the more mature market in the West, the alcoholic beverages industry is not explored fully yet in India. The industry needs support from the Indian government and proper branding and promotions by the companies in the country. According to a report on alcoholic drinks, the market is expected to grow annually by 7.9%, CAGR 2018-2021.
The following alcoholic beverages trends are likely to ascend in 2019.
A recent report by data essentials revealed a 39% increase in the inclusion of beer and wine-based cocktails in menus. For instance, combinations of gin and sparkling wine with a melon slice or rum with prosecco and fruit juices are gaining popularity.
As per the report titled 'India Alcoholic Beverage Market Outlook to 2020 – Inflating Demand for IMFL and Beer from Youth and Women Segment’, Beer and Indian-made foreign liquor (IMFL) are largely consumed in Dadra & Nagar Haveli, Andaman & Nicobar Islands, Daman & Diu, Puducherry, Sikkim and Arunachal Pradesh, Andhra Pradesh, Goa, Karnataka and Kerala.
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Alcohol is not a health elixir yet we could always find options to make low-calorie drinks. Consumers are increasingly pondering about calories, bloating, and headaches that come along with alcohol consumption. Hence, fresher ingredients like vegetables and fruits are being sought after. Even Bloody Mary with extra spice, silver tequila and a splash of juice in vodka soda also work.
According to IRI, the sales of domestic premium rose wines are up by 65%. It is thriving in the US and France. It is the millennial and Gen X consumers who are responsible for the boost in sales. The darker rose along with sweet or partially sweet flavours is more popular. The sweet taste of the premium rose attracts consumers, especially the younger generation.
Must Read: People Prefer To Drink Scotch At Home
Due to its increasing popularity among the younger generation, beer has become the second fastest growing market — the alcohol consumption is dominated by the male population in India — and the third largest in terms of consumption. Youth and complexity go hand-in-hand which is true in their choice of alcoholic beverages as well. The younger demographic is seeking complex flavours and preparation methods where drinks are “smoked”, “toasted” or “pickled”. In addition, they are also attracted to bars serving a wide array of beers.
Also Read: How Mixology Is Taking New Age Bars To The Next Level
This trend has synchronized with the introduction of all-day brunches and breakfasts. The alcohol content, thus, rises as the day progresses with minimal content for breakfast and more midnight onward. The term ‘drunch’ meaning drinking over lunch became popular this year, especially in Bengaluru. Entrepreneurs and younger professionals prefer light alcoholic beverages be it cocktails, beer and wine. This trend will be more popular in more parts of the country in 2019.
Also Read: Home-Grown Concepts Impress Consumers, Says Fruzzante Founder Priyanka Save
As told to Sara Khan, Features Editor, Restaurant India.
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.
What will be Jack Daniel’s strategy for Indian market further?
If Jack Daniel’s took off in India it would be really tough for us. The market and people have started to evolve. Our target is to give our best in the market. Jack Daniel’s doesn’t rely on what market is for success but we ride the world economies. Our driving principle is to ensure that we maintain quality and consistency with not just our products, but also the way our brands are positioned and the way we talk our brand to the consumers. The ambition is to be number one whisky brand in India.
We feel it is the right time for the Indian market for which we have right mix products, resources in the country, developing interests for the brands coming in from out of the country and we want to be the part of that. Around 40 percent of our revenue comes from the US and the rest 60 percent comes from 160 countries around the world.
Are you customizing the products for diverse Indian market?
For different markets, we do make more affordable and accessible products. We are continuously trying to understand this market and evolve our strategies. We will put five products in the market that we think are relevant. For affordability, we have launched smaller SKUs to make our products more accessible to the consumers. Globally we have 10 products in our portfolio and over the next three years, there may be 12-13 products. In general, whiskies have evolved towards better.
How Jack Daniel’s can be more relevant for vodka preferring young generation in India?
Whisky is back in the trend again for most of the globe. It’s not more of year- on- year change it’s a generation of choice. The overriding trend is that people are going for more flavours for spirits. There are different brands that are doing extremely well but in general, they are not keeping pace with whisky. India definitely seems to be whisky friendly. We are a serious whisky maker but at the end of the day, we want to create products that people like drinking.
Do you think Honey and Fire will move towards more serious whiskies?
Hopefully honey and fire is the whisky which has certain elements which lead whisky drinkers to taste other styles as well. I think they will because we found a lot of young people aspiring for Honey and Fire at the first step. Honey has sweet flavours of its own so it doesn’t necessarily pour with another sweet cocktail. With honey, you don’t necessarily need coke.
How do you find awareness about the brand among Indian consumers?
Indian consumers travel around the world today and also with the advent of digital media and social media the exposure is far higher amongst young legal drinking age consumers. People want to learn more about the good brands in the market. A lot of mixologists are coming out of this country and doing well even at global platforms. There are many whisky cocktail bars opening in the market because there is a demand.
Do you believe education about Jack Daniel’s in the F&B community is very important?
Partly, because there are a lot of brands out there. If the consumer recommends Jack Daniel’s and bartender doesn’t know about our brand then there is a chance that he will be served cocktail. I am trying to educate the community because we have a better reason why we are successful and make great products.
What is your personal approach towards distilling whisky?
I being a master distiller never compromise with quality. I always say do ‘whatever it takes do it right’. I want to feel good that everything put out is worthy under the Jack Daniel’s name.
How do you define that whisky is the journey of life for most people?
I do believe that for most people whisky is the journey. In general, how older you get you tend to drink less and better. In college years you drink in volume, irrespective of the quality of the whisky, but as you get older you don’t drink in big volume but something nice and that can have quality, and a lot of people do that for lifetime. Thus, palate and preference changes. We have a portfolio that kind of reflects what people want to explore.
The food preferences of Indians are changing with more and more exposure to global world. Today, people like to travel to taste newer cuisines and experience food heritage. This goes same with the drinking culture as alcohol drinking is no more viewed as a taboo in the market. All thanks to the new age wave of bar and pub culture that’s setting a newer heights for the industry. From food being the preferred menu, restaurants today are doing a hell lot of beverages and innovative drinks to attract the new age customers who are more open to learning new vibes in the country.
“Younger people have more disposable opening and exposure to various brands and trends etc which makes it easier for them to accept new stuff. The audience is also more traveled so they know how alcohol works with food,” shares Chef Mitesh of Lemon Leaf.
Alcohol is becoming more and more important and it is no longer as a taboo with this generation. And, this is not enough, even families are becoming open about this and it’s becoming main stream. Today restaurants have an extensive bar menu and not because they want to focus on liquor but how well it goes with the food. For example restaurants like Kylin which serves Asian food love to pair their food with some drinks. “Kylin has always had an extensive bar menu at its restaurants. But the focus has been on not all liquor but specifically what goes well with Asian food. Beer and whiskey is what goes well with Asian flavours, however if you’re looking to pair Italian food with alcohol then wine is your go to liquor,” says Saurabh Khanijo Owner at Kylin SkyBar.
Over the years, alcohol has come up as a major companion to food all credits to the ever evolving Indian palates which is undergoing a change. As Indians become more well-travelled and well-versed in the ways of the world, their understanding of alcohol is also undergoing a transformation. Earlier alcohol was consumed for the effect but of late, people have noticed the taste and are trying to pair it up with food.
“At TANDDAV and Smokeys our team does recommend certain wines/malts/cocktails which we believe compliment a certain meats or dishes to enhance the experience for the customer,” adds Shiv Karan Singh of Taandav.
Going by the law
No matter alcohol is a major trend in India and people are accepting and enjoying it. Not only this business at Bar is the new trend that is attracting corporate to these bars and pubs. Gone are the days when people use to have some discussions over hot cup of coffee, today all the major decisions are made over a glass of wine. But, despite of all this changes that is ruling the industry these restaurants and bars need to have t least 10-15 licenses to make you enjoy your time.
“We respect the system and are in agreement with the formalities that are to be followed. It is hard, full of bureaucracy, but that is the way it is,” points Naresh who runs one of the happening cafe Imperfecto at Hauz Khas village.
Commenting on the same, Manish Sharma of Molecule Gurgaon, shares, “It is not difficult to go with the legalities if everything is fait and transparent. We are truthful to our work and deeds, Thus We as team face no difficulty.”
Global alcoholic drinks volumes registered a decline of 0.7 percent in 2015, entering negative territory for the first time in more than a decade, shared research released by Euromonitor International
This translated into a loss of 1.7 billion litres of alcoholic drinks volume sales since 2014.
Historic growth narratives derailed due to the influence of macro headwinds hitting China, which recorded a 3.5 percent decline.
Brazil and Eastern Europe showed further weaknesses, falling 2.5 and 4.9 percent, respectively. While Western Europe and Australasia flatlined, North America’s 2.3 percent growth provided a shot of optimism in an otherwise sobering global landscape where even the potential of AMEA (Asia, Middle East and Africa) was diluted by currency volatility and commodity price fluctuations.
“While terms such as authenticity and craftsmanship are losing traction, the trajectories of sophistication, moderation, perceived exotic credentials, accessibility and restrained yet grounded aspirational attributes remain the key driving forces fuelling pockets of buoyancy,” shared Spiros Malandrakis, Senior Alcoholic Drinks Analyst.
Beyond those star performers, tequila and bourbon remained solid, while cognac bounced back strongly. Cider performed well but has softened as Americans move to hard sodadrinks. Rum and vodka find themselves amongst the worst performers, while still light white and red wine varietals join sparkling wines back to healthy levels.
“Premium English gin, Irish and Japanese whiskey, dark and non-alcoholic beer are the flag bearers of growth and it is no coincidence that those also happen to be the segments gaining further momentum with the ever important millennial demographic in mature western markets,” added Malandrakis.
“While initial forecasts suggest a gradual recovery from 2016, performance will remain substandard compared to historical trajectories. It is not the industry’s vision that is impaired but rather the horizon that can be treacherous.” Malandrakis concluded.
According to a report, restrictive regulations including progressive taxation and pricing controls are shortening profit growth in alcoholic beverages market, while keeping high barriers for new entrants in the country.
The ongoing high barriers for new entrants would favor European beverage makers already established in India, said Global research major Moody's in a report.
Moody's Investor Service said, "We believe India's alcoholic beverage market has strong long-term growth potential for European producers. This is supported by a number of factors, including our expectation that India's economic growth will continue to outperform that of its peers in 2015-16".
In India, alcohol production, distribution and sales are regulated by each state. The different regulations and existence of central state tax (CST) payable on goods moving from one state to another are the biggest limit on growth, it said. Furthermore, states set rules on alcohol consumption, set the drinking age and also control distribution and pricing.
Moody further added in existing manufacturers will have strong protection until regulation change, "We do not expect the regulatory environment to materially improve during the next two to three years and this will impede any broad improvement in operating profit margins for alcoholic beverage companies".
Along with other restrictive regulations, liquor prices are dogged by individual state governments once a year and so alcoholic beverage companies operating in India cannot adjust prices based on fluctuations in the cost of raw materials, inflation or competitive pressures.
Moreover, the sector also faces progressive taxation, which further limits price increases. Changes in excise duty in larger states can significantly influence annual volume production. Higher duties can sharply reduce consumption because alcohol is still relatively expensive for many consumers.
Moody's Investor Service expects, in 2015-18 beer volume growth of 8.8 per cent a year; albeit from a low base and spirits segment volume growth to moderate to around 3.7 per cent a year, more in line with the global average.
FSSAI which has been setting safety measures for noodles and milk has now turning towards alcoholic beverages with plans to set up standards for drinks, including beer and whisky, reported PTI.
The Food Safety Standards Authority of India will come up with a draft notification on the standards of alcoholic beverages in next two months.
"Work is going on to prepare standards for alcohol and alcoholic beverages, in next two months the FSSAI will come up with draft notification seeking comments from the public," said a senior official.
According the official drinks like whisky, vodka, gin, beer and even breezer will come under the proposed standards.
Earlier this year, a meeting of the Central Advisory Committee had also discussed having standards for alcohol and alcoholic beverages.
It was decided that once standards for alcohol and alcoholic beverages were finalised it shall be intimated to all states and UTs so that they may suitably advise the respective excise departments.
In terms of packaging, FSSAI has already proposed that alcoholic beverages, pan masala and supari may not be treated as "unsafe food" for recall just because they carry a mandatory warning on their covers.
It is mentioned on pan masala, supari and liquor that their consumption is injurious to health.
The proposal has been made in the Safety and Standards (Food Recall Procedure) Regulations, 2015, which has been put up for public comments.
"In the case of alcoholic beverages, pan masala, supari, the mandatory mention of warning 'consumption of alcohol/ pan masala/ supari is injurious to health' may not be treated as unsafe food as part of any recall plan unless the beverage or food is determined unsafe as per the classification of recall making it injurious to health or even causing death," the proposal said.
These draft norms were put up for public comments on May 29 and the deadline ends on August 1.
Wine consumption has gone through a paradigm shift with 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 along.
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.
Consumption pattern
People do not prefer a simple non-alcoholic drink when out for a dinner or lunch. 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 international tag attached. For example, Indian Made Foreign Liquor (IMFL) is on high demand by the local people.
As per Raj, Manager, 10 Downing Street, a multi-cuisine bar in Chandigarh, “At our restaurant about 60 percent of the people prefer alcoholic beverages when they come for dining. Wine consumption is though low limiting to the corporate, old and the ladies.”
Commenting on the same, Lalit Sharma, Restaurant Manager, Ramada Gurgaon Central, says, “People with their family and women are the one who prefer wine mostly. The demand goes higher on weekends among the ladies.”
Popular wine themes
The variety of wines offered by restaurants and the type of wine menus depends on the complexity of the restaurant operation 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. Some other wines that are a hit today are ‘new world wines’ apart from the traditional Indian wines.
Manish Kumar Baheyti, Owner, Haute Services Pvt Ltd says, “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.”
Speaking on the same, Huzoor Ahmad, General Manager, The BrewMaster, says, “Imported wine from France is a big hit in India apart from this old wines are commonly used at restaurants and bars.”
Pricing
Price of a wine depends on its quality and brand. If the wine is imported and has a tag for an international brand it will cost much more than the local wine. Generally the cost of wine is between Rs 1200 to Rs 25,000 depending on the quality and the type of restaurant you are taking wine in.
Know the suppliers
The beverage industry is excelling in the market with people visiting restaurants regularly. About 70 percent of people prefer to have wine or other alcoholic beverages when they are out. With this the increases in the suppliers have also increased in the city. Hotels like Ramada Hotel Gurgaon Central, The BrewMaster and Chi Kitchen and Bar get the wine supplies from the local suppliers.
Speaking on the same, Baheyti, says, “Restaurants source local wines from authorised distributors and get the international brands from importers.”
According to Praful Maru, Director, Flags Restaurant, Milestone, Brinco, “Candy Wines (typical wine supplier) are few of the suppliers who supply international wine in the country apart from Sonary Wines (typical wine supplier) which supplies local taste”.
Legalities involved
Starting a restaurant and serving food is much easier than a restaurant serving wine along with the food. A restaurant and a bar go through certain legalities before serving wine at their places. There are two kind of licenses offered in Delhi, one is wine and beer license (due to their low alcohol content and the other is a license for running a full fledged bar.
Speaking on the difficulty faced while getting a license for the bar here in Delhi, Virender Kumar, Restaurant Manager, Chi Kitchen and Bar, says, “We went through many legal aspects. Getting licenses from Delhi Police to Municipal Corporation was very difficult.”
“But today it is very easy to open a bar in India. It depends on each state govt and the Delhi govt is very accommodating towards giving licenses as Delhi is the capital city of the country which has people from all over the world and running a bar here in Delhi is not that difficult, he adds.”
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 goes through.
By analysing the alcohol consumption of the Indian consumer, it can be said that traditionally consumers were more inclined towards spirits and beer, while wine has been steadily gaining acceptance now than ever.
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