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<ul><li>The Indian alcoholic beverages market is projected to grow at 11% per annum in value terms for the period between 2021 to 2025. </li><li>The alcohol and <keyword id="1453601" type="General" weightage="20" keywordseo="beverage-industry" source="Orion">beverage industry</keyword> in India is projected to cross 1200 million cases in volume by 2025. </li><li>India’s alcoholic beverages industry is having to deal with several obstacles – from tourists triggering pandemic scares to varying excise duties across the country. </li><li>Consumers are also switching from beer to whisky, rum, brandy and scotch on budgetary and health concerns. </li></ul>A growing spurt in post-pandemic social gatherings and socialising is seeing an uptick in food and beverages consumption, boosting <keyword id="13627872" type="General" weightage="20" keywordseo="Alcohol-sales-in-India" source="Orion">alcohol sales in India</keyword>. Consumers are also switching from beer to brown liquor like whisky, rum, brandy and scotch on budgetary and health concerns, industry experts say. “There has been a revenge buying going on in the market in the past 6 months. Many have shifted from beer to higher alcohol content products. Beer is comparatively more expensive as people tend to buy more of it due to less alcohol content,” said Ishwaraj Bhatia, COO of craft beer company <keyword id="138117" type="General" weightage="50" keywordseo="simba" source="Orion">Simba</keyword>, which witnessed a 35% growth post-pandemic. Indians have been getting out in droves to socialise in restaurants, clubs, pubs and bars – making up for all the lost social interactions after the Covid-19 pandemic’s forced isolation. Bangalore-based Ironhill, which claims to be the world’s largest microbrewery, clocked an overall sales in excess of ₹150 crore in 2022 alone. “The post pandemic era has been promising to us in many ways. Our sales have improved by steady dine-in footfalls across all our outlets. The consumption has been the highest in Bengaluru by a huge margin, followed by Vijayawada in Andhra Pradesh and outlets in Telangana and Andhra Pradesh,” said <keyword id="12042815" type="General" weightage="50" keywordseo="teja-chekuri" source="Orion">Teja Chekuri</keyword>, Managing Partner of Ironhill India. Dine-in business of quick service restaurants or QSRs saw a strong growth in Q1FY2023 according to a <keyword id="87153" type="General" weightage="50" keywordseo="bnp-paribas" source="Orion">BNP Paribas</keyword> sector report. That bodes well for <keyword id="25441" type="General" weightage="20" keywordseo="Alcohol-consumption" source="Orion">alcohol consumption</keyword> too. According to a Mirae Asset QSR report 2022, pubs, clubs and bars comprise 27% of the sales share. Pubs and bars are expected to grow at a CAGR of 14.8% and 9.5% in FY25, Paribas said. Indian alcohol beverage market is the third largest market in the world after China and USA by volume. This market is projected to grow at 11% per annum in value terms in 2021-2025, while by volume it is projected to cross 1200 million cases by<a href="https://www.bseindia.com/corporates/download/380455/Sula%20Vineyards%20Limited%20-%20DRHP_20220719121719.pdf"> 2025</a>. Changing excise policies a challenge Even as the alcoholic beverages industry in India slowly gets back on the road to recovery, it is having to deal with several obstacles – from tourists triggering pandemic scares to varying excise duties across the country. Delhi, a major market for alcoholic beverages, recently changed its excise policy. From September 1, Delhi and Ghaziabad went back to their old excise policies, leaving private players in the lurch. Private players were offering one plus one free alcohol to sell the remaining stock before the old excise policy came back. “The old excise policy favoured the private players more than the government vendors. Label and registration fees have gone up 100 fold and marketing is restricted. For registering a label in Delhi, we have to pay ₹15 lakh per year. For us, Delhi has been very expensive from the beginning, “ said Simba’s Bhatia. The entrepreneurs in the industry say Tier 1 cities were facing hiccups getting back on track due to the high inflow of travellers post pandemic leading to Covid cases. The tier 2 and tier 3 cities were quicker to adapt. “It is more difficult to sell alcohol in India rather than abroad because every state is a different country with its own excise rules. We have a separate team just to monitor the rapid changes in excise rules across states in India. The southern region of India is especially difficult to tap into as it forms 40% of the beer sales,” said Bhatia. Despite these issues, the Indian alcoholic beverage industry is expecting to grow robustly in the next few years and are looking to expand. UK-based research agency <keyword id="14971974" type="General" weightage="50" keywordseo="iwsr-drinks" source="Orion">IWSR Drinks</keyword> market analysis says Indian spirits segments will grow 4.4% in the next five years while beer will grow 9.3%. “We have been pushing our franchise model quite aggressively and have already begun talks for outlets in Maharashtra, Delhi, Punjab, Rajasthan among other states. We plan to have at least 30 outlets across India in the next few years,” said Ironhill India’s Chekuri. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/sanjay-khanna-appointed-ceo-of-american-express-india/articleshow/94169933.cms">Sanjay Khanna appointed CEO of American Express India</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/a-fire-at-an-ev-showroom-has-killed-8-several-injured-while-trying-to-escape/articleshow/94167880.cms">A fire at an EV showroom has killed 8, several injured while trying to escape</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech-buying-guides/amazon-great-indian-festival-sale-kickstarter-deals-revealed/articleshow/94157835.cms">Amazon Great Indian Festival Sale: Kickstarter deals revealed</a>

Spurt in social gatherings post-Covid is boosting alcohol sales in India

<ul><li>Started in 2016, <keyword id="9581444" type="PERSON" weightage="20" keywordseo="simba-craft-beer">Simba Craft Beer</keyword> has already been able to carve a way for itself in the market.</li><li>Word of mouth has played a huge role in the brand's growth and has been instrumental in helping them develop a base of brand loyalists, shares <keyword id="6862143" type="PERSON" weightage="20" keywordseo="Prabhtej-Singh-Bhatia">Prabhtej Singh Bhatia</keyword>, Founder and CEO of Simba <keyword id="782706" type="PERSON" weightage="20" keywordseo="Craft-Beer">Craft Beer</keyword>.</li><li>He tells us how despite being a difficult year, in 2020 the company has already touched Rs 150 crore from the Rs 125 crore last year<a name="_GoBack"></a>.</li><li>Bhatia also tells us that in the next 5 years, he sees the craft beer segment take a leap and takeover 10-11% of the market instead on the current 1-2%. </li></ul> The <keyword id="91743" type="PERSON" weightage="20" keywordseo="lockdown">lockdown</keyword> this year came right before the summer season. Many brands that rely heavily on the season like home appliances, travel etc were impacted substantially due to the complete country-wide lockdown. Another industry that was severely affected due to this move was the <keyword id="467068" type="PERSON" weightage="20" keywordseo="liquor-industry">liquor industry</keyword>. The summer months usually mean peak sale time for liquor brands, especially beers. However, with the gradual opening up of the country, things are slowly starting to look up. We recently caught up with Prabhtej Singh Bhatia, Founder and CEO of Simba Craft Beer. Started in 2016, the brand has already been able to carve a way for itself in the market. Primarily relying on word-of-mouth marketing, Simba has been able to develop a loyal consumer base in the country. Despite entering a segment that has had a lot of well-established players, the brand has been witnessing impressive growth. Bhatia tells us how they have been able to drive differentiation, and how word of mouth has worked wonders for the brand. Excerpts: <li>Q) Simba was launched in 2016 but when you launched, you hardly did any marketing around it then. How did you manage to woo Indian beer drinkers who have been loyalists of a lot of other brands?</li> Since the inception of the brand, our brand philosophy has been that if you build a great product, then it speaks for itself. Our focus for Simba has been to first get the product right and then work upon building a strong knit community of consumers who love the product. We truly believe in our product and it has carved a niche for itself in the country. Having said that, we did a bit of marketing. we always wanted to build a brand from ground-up. <li>Q) Your job must have been difficult as you were competing in a category that had a lot of global, much well-established players. How were you able to create a differentiation for yourself?</li> We largely depended on word-of-mouth promotion and still stick to that. And because of a much higher quality and differentiated product we were able to capture the imagination of several people and make our presence felt. When we entered the market, the industry had been stagnant for a while with old players and consumers did not have a lot of options. They consumed the same kind of beer packaged under different labels. It’s fairly recent since a new wave of craft beer enthusiasts emerged and is growing now. Consumers today are receptive to change and are open to experimenting with new offerings. Simba has been able to disrupt the already existing limited categories (strong and lager) of beer by introducing quality product and in new variants. <li>Q) You say word-of-mouth played an important role initially. Has your marketing strategy evolved now? </li> Word of mouth played a huge role in our growth, it has been instrumental in helping us develop a base of brand loyalists. We continue to be cognizant of our brand associations, events we host or partner with and the kind of consumer segment we reach out, to ensure our key message reaches the right set of audience. This has helped us create a niche for ourselves in the market/industry. <li>Q) You have already launched an IP. Tell us a bit about Simba Uproar.</li> Simba has been working hard to support local underground artists in helping them find a strong foothold in the industry. We want to provide artists and consumers with relevant platforms to showcase their talent. For this we launched our own IP called Simba Uproar where we have worked with artists such as Blot!,Sequel, Ritviz, Ten Walls, George Fitzgerald and Seedhe Maut. In light of the current health crisis, we took our IP to consumers’ homes with Simba Roar from Home – a series of cool gigs, good music and great beer in the comfort of homes. Making this a twice a month property to engage with music lovers, Simba live streams a local artists from varied genres who play their curated playlists. <li>Q) You have also launched a range of merchandise. How has the reception been so far? How are you growing that vertical? Are you only promoting it on the digital medium?</li> Our merchandise is something that was born out of consumer demand and love for the brand. We are building it very organically and do not do a lot of marketing for it. Our focus is and will remain our beer. Our brand loyalists have shown us constant support, be it our beer or our merchandise. It has been received well by Simba loyalists and has grown ever since. <li>Q) How big is the brand right now and what is your target revenue for the next year? And how do you aim to achieve this? </li> We have witnessed tremendous growth. This year our company had already touched Rs 150 crore from Rs 125 crore last year<a name="_GoBack"></a>. The year so far has been challenging due to the COVID-19 pandemic and its impact of business across industries, including the liquor industry. Things are beginning to look up as we move towards resuming normalcy, and we are positive and hopeful about the year ahead and 2021. <li>Q) How are you looking at expanding your offering while also strengthening your distribution?</li> We are looking at foraying into a new segment with our kegs, these will be available throughout the country. We also aim to enter Kerala in southern markets and strengthen our presence in Karnataka state among others. There are some very good distributers present in the industry who are doing a great job. We are in talks with them for our business as well. <li>Q) What was the business impact of the lockdown on your company? </li> Our business greatly suffered in terms of sales during the month of April and May due to COVID-19 lockdown. We almost made zero sales during those two months, which has impacted the business. April and May used to contribute to almost 25-30% of the annual revenue. <li>Q) What lessons of resilience did you learn after the lockdown? Has it made your business more future-ready?</li> The pandemic has forced us all to revisit our basics and stick to them. We realized the fundamentals of any company are very important, financial prudence is more important than ever now. We are definitely more future-ready and fundamentally aligned following this experience. COVID-19 has taught us that sticking to ones fundamentals never goes wrong and has paved a way for a better future. <li>Q) How do you see the craft beer segment evolve in the next few years?</li> I think the craft beer segment is destined to grow with some hit on the <keyword id="1126722" type="PERSON" weightage="20" keywordseo="microbrewery">microbrewery</keyword> side. In the next 5 years, I do see it taking a leap and takeover 10-11% of the market instead on 1-2% right now.

Word of mouth played a huge role in our growth, helped us develop a base of brand loyalists: Prabhtej Singh Bhatia, Simba Craft Beer

<ul><li>In an interview with Business Insider, <keyword id="6862143" type="UNKNOWN" weightage="20" keywordseo="Prabhtej-Singh-Bhatia">Prabhtej Singh Bhatia</keyword>, co-founder of <keyword id="7455615" type="UNKNOWN" weightage="20" keywordseo="simba-beer">Simba beer</keyword>, says the brand is for India’s millennials who wanted the real taste of beer. </li><li>In 2017-18, the company reported a revenue of ₹76 crore in 2017-18 and ₹125 crore in 2018-19. </li><li>The beer is available in the cities of Delhi, Mumbai, Bengaluru, Goa, Kolkata and the states of Chattisgarh and Assam</li></ul>India’s homegrown beer market has gained popularity with the likes of <keyword id="3195140" type="PERSON" weightage="20" keywordseo="Bira91">Bira91</keyword>, <keyword id="138117" type="COMPANY" weightage="20" keywordseo="Simba">Simba</keyword>, White Rhino among others, serving Indian millennials with tasteful beer in quirky bottles. Simba beer which is now found on shelves at Delhi, Mumbai, Bengaluru, Goa, Kolkata and the states of Chattisgarh and Assam, actually started off in Durg, Chattisgarh. Born to a family that has been in the liquor business since 1948, 27-year old Prabhtej Singh Bhatia decided to build a brewery in the state where he grew up in. And now, Simba is opening its second brewery in Arunachal Pradesh as it plans to conquer the North Eastern market. The company officially launched its first beer Simba Strong in market in 2016, and followed it up with Lager, Wit and Stout. It reported revenue of ₹76 crore in 2017-18 and ₹125 crore in 2018-19. “Now we want to further strengthen our presence in these markets and not just grow geographically. By the end of the year, I hope to offer a portfolio of beer products to all of these cities we are currently in,” Bhatia told Business Insider India. But they have competition in the form of Bira91 which is also growing fast in numbers and geographically too. “In the price range we are in, we are behind only Bira in terms of absolute volumes,” said Bhatia. How he did it In 2009, Bhatia went to the UK for his graduation and when he came home for summers, he realised the lack of a product level distinction of beer in India. “There was just a general notion that beer is to get you high. But now, more and more younger consumers are demanding it more for the taste of it and want a better product for a better experience of drinking it with friends,” said Bhatia. While in his first year of graduation, Bhatia applied for a license and finally got one when he came back in 2012. His first choice of land was in Durg, but he had to face resistance from locals who had a social taboo against brewing beer. Finally, he set up a brewery in Durg’s industrial area. It took them 1.5 years to set up the brewery and even after that, they didn’t know how to make the right kind of beer. “We tied up with SAB Miller for contract manufacturing of their beers. For two years, we only did their production to ensure we learn how to make a beer making facility efficient and also get the quality consistency right,” said Bhatia. In May 2016, they launched the Simba Strong in Chhattisgarh and also focused on making the packaging strong enough to generate brand recall. “In 2017, we doubled our capacity. In 2018 we ended the contract with SAB Miller and started making Simba alone,” he said. Today, the capacity of the Durg brewery is 86.4 million bottles a year.

A 27-year old has his own beer brand that is earning ₹125 crore just in its third year

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Spurt in social gatherings post-Covid is boosting alcohol sales in India

Eetika Kapoor

Word of mouth played a huge role in our growth, helped us develop a base of brand loyalists: Prabhtej Singh Bhatia, Simba Craft Beer

Samarpita Banerjee

A 27-year old has his own beer brand that is earning ₹125 crore just in its third year

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