Ready-to-drink cocktails: 1 mln cans, bottles in next 1 year – O’Be Cocktails’ ambitious sales goal | The Financial Express

Ready-to-drink cocktails: 1 mln cans, bottles in next 1 year – O’Be Cocktails’ ambitious sales goal

O’Be Cocktails, which started operations in 2019, sold 100,000 bottles/ cans in the last 12 months; and is now looking to raise this ‘number to one million in the next 12 months through community engagement and outreach’.

Ready-to-drink cocktails: 1 mln cans, bottles in next 1 year – O’Be Cocktails’ ambitious sales goal
Nitesh Prakash, Founder & CEO, O'Be Cocktails.

Alcoholic ready-to-drinks market in India is anticipated to surge at a CAGR or 10.29 per cent in revenue over the forecast period 2021-26 and at a CAGR of 12.15 per cent in terms of volume, according to Research and Markets. And while established brands are jumping on the trend, startups too are launching their range and selling canned cocktails across India. Riding on the trend, O’Be Cocktails, which started operations in 2019, sold 100,000 bottles/ cans in the last 12 months; and is now looking to raise this ‘number to one million in the next 12 months through community engagement and outreach’.

“We offer cocktails ranging from white rum, vodka, gin, whiskey, tequila, and others as base spirits. We believe cocktails should not be limited to 1/2 spirits – consumers should have every option available on the shelf. We’ll keep engaging with consumers to know their taste and expand our range of cocktails,” said Nitesh Prakash, Founder & CEO, O’Be Cocktails.

The brand has secured two rounds of funding – the first during September 2020 worth Rs 3.5 crore led by First Cheque; Bhavish Aggarwal and Ankit Bhati of Ola Cabs; Abhishek Goyal of Traxcn; and Sprout Investments. Later it raised a bridge round in July 2022 worth Rs 3.5 crore led by Sattva Family Office; Gaurang Jhunjuhwala of Mckinsey: Ankit Bhati of OLA; LetsVenture; and others. Here are edited excerpts from Nitesh Prakash’s interview with FianncialExpress.com.

Where will the majority of capital from the recent funding round be invested?

The previous round we raised was in 2020 and the funding was primarily focused on building differentiation in the category and the market, entailing the right packaging of the product, and adding convenience to the end product. The recent bridge round worth Rs 3.5 crore will be used to build the scale of distribution and to put a strong emphasis on team building and expansion into new regions.

Tell us about your current retail presence and your expansion plans.

As a premium cocktail brand, we ensure the presence across premium stores only. We are currently present across 1,000 premium wine stores across Bengaluru, Goa and Hyderabad, including the likes of Tonique, Drops, and others. We are exploring new markets and opportunities and the plan is to reach pan India urban consumers by FY 2022-23 and grow 10x compared to our previous year’s performance. All the three markets are currently competing with each other with continuous MoM growth of 10 per cent without spending heavily. We believe the true potential of the scale will come when we will start unlocking our brand initiatives.

Are you planning to hike the prices of O’ Be Cocktails products amid rising inflation and a rise in input costs? How are you maintaining your margins?

There has been a significant rise in our packaging and liquid costs, however, we have absorbed the cost in our margins at the moment because we are learning to understand the price flexibility around the product hence ensuring all the benefits are being passed on to the end consumer.

What kind of trends are you witnessing in the liquor industry currently? How are you working in line with these trends?

Across the markets, growth is primarily driven by premium brands being introduced in the last few years. Conscious and smart consumers enjoy the social drinking trend instead of the old-school drunk state. RTD is going to be an exciting category for the next few years, the way I look at it – the same way Gin culture came and conquered everyone. We are extremely confident in the choices that we have made, ensuring the right convenience for a premium cocktail experience.

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First published on: 25-08-2022 at 12:54:15 pm
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