Indians are drinking more than ever. The country’s alcohol intake increased by 38 percent to 5.9 litres per adult in a year in 2017 from 4.3 litres per adult in a year in 2010, according to a study published by The Lancet.
While Indians have started drinking more, experts say that of late, they have also started drinking better and have moved from the usual locally made whiskies, rums and beers to single malt whisky, gin, and cocktails.
The shift has led to the cropping up of companies that supply mixers – non-alcoholic ingredients used in mixed drinks and cocktails. Mixers improve flavours or add new flavours, making a drink more sour or sweeter. They range from cola and a wide variety of tonic water to Bloody Mary, lime margarita and whisky sour.
There is a huge gap in the availability of mixers in the Indian market. Startups such as Svami Drinks, Jimmy’s Cocktails, Sepoy & Co. and Mumbai Mixers have sprouted up in this segment, trying to address the dearth of alcohol mixers in the country.
“The consumption of alcohol is growing in India and almost every drink category is seeing a growth of late. However, we have had limited choices of mixers,” said Ankur Bhatia, founder of Jimmy’s Cocktails. “For whisky, we have had water and soda and everything else was mixed with whatever we would get our hands on such as juices and soft drinks. But consumers are now becoming more discerning and we felt there was a need for mixers in this market.”
Jimmy’s Cocktails, founded in September 2019, raised Rs 6 crore in funding earlier this year from investors led by First State Stewart Asia director Vinay Agarwal and HDFC CEO Keki Mistry. It had raised Rs 2.5 crore last year. According to Bhatia, the company clocks Rs 3 crore in revenue per month.
Bottoms up
Other factors have contributed to the growth of this category. Indians prefer to consume alcohol at home and this, too, offers a huge opportunity for mixers.
“About 75 percent of alcohol consumption in India is happening at home and the rest in bars and restaurants,” said Bhatia, who has worked with alcoholic beverages company Beam Suntory. “Also, every four drinks out of 10 at bars in India are cocktails. So, it’s a no-brainer – the potential this market has in India.”
Experts said the market for mixers could grow to Rs 7,000 crore by 2030.
Even non-alcoholic beverage companies have made a beeline for this niche market. The Coca-Cola Company has launched a range of mixers in the UK and Europe and though is yet to introduce them in India, the product can be seen in high-end modern trade stores such as Nature’s Basket.
“The Coca Cola Signature Mixers is our exciting range of specially designed crafted mixers,” a Coca-Cola India spokesperson said. “The offering was first launched in the United Kingdom in 2019, followed by other parts of Europe, and is a leading innovation in the global market. For India, if we plan to foray in the said category, we shall keep our stakeholders informed.”
The gin factor
The growing popularity of gin in the country, too, has led to the emergence of mixers. Svami Drinks, founded in 2018 by Rahul Mehra, Aneesh Bhasin and Sahil Jatana, caters to this segment.
“Lately, a gin surge has happened in India and more and better quality drinks are being launched in the market. However, when it comes to tonic, the consumers have limited options, such as Schweppes tonic water,” said Jatana.
Svami Drinks launched a few tonic waters in 2018. Besides regular tonic water, the company introduced flavoured products such as cucumber tonic water and grapefruit tonic water. In the cocktail mixers category, it makes products such as 2 Cal Cola and salted lemonade.
The company’s products are available at about 1,800 retail points across the country. While 70 percent of its business in pre-pandemic times came from the hotels, restaurants and caterers segment, Svami Drinks moved quickly to expand its retail as the Covid-19 pandemic struck the country. Retail now contributes 70 percent of its sales, hotels, restaurants and caterers 20 percent, and digital channels about 10 percent.
Jimmy’s Cocktails always had a retail focus and is present in about 3,000 shops in 40 cities in the country. The company plans to sell its products in 5,000 shops soon and is looking at possible tie-ups with bars.
Both companies have positioned their products in the premium category. A 250 ml bottle of Bloody Mary Cocktail Mix by Jimmy’s Cocktails is priced at Rs 99. A 200 ml bottle of Tonic Water by Svami is priced at Rs 85, while that of Schweppes is available at Rs 55.
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