Tag Archives: Craft Beer

ZigZag Vodka – Scoring with premium craft beers and vodkas

Ishwaraj Singh Bhatia, Co-Founder and COO, Simba Beer and ZigZag Vodka, with a family background in the alcobev industry has opted for premium craft beers, various variants of ZigZag vodka to breakthrough in the Indian market.

What made you opt for the alcobev industry?

My family’s legacy in the alcohol distribution business spans three generations, providing me with a deep-rooted understanding of the industry from an early age. Growing up, I was immersed in the nuances of beverage production and the cultural significance of alcoholic beverages. While studying in England, I witnessed a thriving craft beer movement and recognised a gap in the Indian market for authentic, homegrown craft beers. This realisation, combined with a strong entrepreneurial drive, led us to establish Simba Beer in 2016, with the vision of bringing a premium craft beer experience to Indian consumers.

Why craft beer and not normal beer, considering scaling up craft beer in terms of volume is a long journey?

Craft beer represents more than just a beverage; it embodies artistry, innovation, and a commitment to quality. Unlike mass-produced beers, craft beers allow for experimentation with flavours, ingredients, and brewing techniques, catering to consumers seeking unique and diverse taste experiences. We recognised that the Indian consumer was evolving, with a growing appetite for premium and varied beer options. While scaling craft beer presents challenges due to its artisanal nature, we believe that focussing on quality over quantity would resonate with discerning consumers. This approach has fostered a loyal customer base and positioned Simba as a distinguished brand in the market.

What kind of volumes are you looking at to achieve economies of scale?

Achieving economies of scale is essential for operational efficiency and sustainability. While specific volume targets are proprietary, we have strategically invested in expanding our brewing capacities. For instance, we established our flagship brewery in Durg, Chhattisgarh, which has enabled us to meet increasing demand while maintaining stringent quality standards. Our focus remains on scaling thoughtfully to ensure that growth does not compromise the artisanal essence of our products.

Is Simba Beer connected with Simba Chips?

No, Simba Beer is not connected with Simba Chips. The similarity in names is purely coincidental, and there is no affiliation between the two brands.

What kind of promotions do you plan to do for Simba?

Our promotional strategy for Simba is rooted in fostering a strong community and creating immersive brand experiences. While trade promotions vary by state, our primary marketing focus is on engaging consumers through experiential events and digital storytelling. For example, Simba Uproar 2025 in Delhi celebrated underground culture, providing a platform for grassroots talent in India’s hip-hop and street culture scenes. These initiatives not only enhance brand visibility, but also deepen our connection with our audience. Additionally, we leverage digital platforms to share compelling content, collaborate with influencers, and drive meaningful engagement.

Tell us more about ZigZag Vodka?

ZigZag Vodka is our foray into the vodka market, reflecting our commitment to quality and innovation.

Launched recently, ZigZag offers a meticulously crafted vodka experience, available in four variants: Original, Lime, Orange, and Green Apple, catering to diverse consumer preferences. Our vodka undergoes a rigorous filtration process using carbon, silver, platinum, and gold, ensuring a clean and crisp taste. The brand name ‘ZigZag’ symbolises the dynamic lifestyle of modern consumers who seamlessly navigate between their professional responsibilities and personal passions. This product embodies our dedication to crafting beverages that align with contemporary tastes and lifestyles.

Which states is the brand available in, and what are your plans to expand pan-India?

Currently, ZigZag Vodka is available in Delhi, Bangalore, Goa and Chhattisgarh. We have strategically chosen these markets to establish a strong initial presence. Our expansion plan involves entering additional states in a phased manner, considering factors such as market demand, regulatory environments, and distribution logistics. Our goal is to achieve a pan-India presence, making ZigZag accessible to consumers nationwide while ensuring that each market is adequately supported to maintain our standards of quality and consumer engagement.

What is the price range you plan to operate in?

ZigZag Vodka is crafted with a focus on quality and the use of superior ingredients, delivering a smooth and enjoyable experience. While pricing varies across different states due to taxation and local regulations, we aim to offer ZigZag at a price point that balances excellence with accessibility, ensuring consumers receive exceptional value. Our pricing strategy is designed to be competitive within the vodka market, appealing to those who seek both quality and affordability. Available in three sizes—750 ml, 375 ml, and 180 ml—ZigZag Vodka is priced between ₹390–₹1195 for the Original variant (750 ml).

Are you looking at launching flavoured vodkas in the near future?

Yes, recognising the evolving consumer preferences, we have introduced flavoured variants such as Lime, Orange, and Green Apple alongside our Original vodka. We continue to explore new flavours to cater to diverse tastes. Our approach involves extensive research and development to identify flavour profiles that resonate with our target audience, ensuring that each new variant upholds our commitment to quality and innovation.

What about Vodka RTDs?

The Ready-to-Drink (RTD) segment is an exciting space that aligns with evolving consumer preferences for convenience and on-the-go experiences. While ZigZag Vodka is currently focussed on establishing itself in the market with its core offerings, we recognise the growing demand for high-quality RTD options. As we continue to expand, we are exploring innovative ways to bring the ZigZag experience to consumers in more accessible and dynamic formats.

Karnataka’s beer price linked to alcohol content

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The Karnataka Government on January 8 has issued a final notification with regard to hike in beer prices. The draft notification on increase in duty on beer was made first on August 23 last year. According to the Excise Department, henceforth, beer prices will be linked to the content of alcohol in it.

This is the third revision in beer prices by the Congress government in the state since July 2023. The first hike was in the July 2023 budget in which the Chief Minister had announced a 10% hike in Additional Excise Duty (AED) on beer and 20% hike in AED on all the then 18 slabs of Indian Made Liquor (IML). In January 2024, AED on beer was increased by 10% – from 185% of the declared price to 195% of the declared price.

Beer pricing has been categorised into two slabs, depending on the alcohol content. The Excise Duty (ED) on mild beers with alcoholic content less than or equal to 5% v/v has been pegged at ₹12 per bulk litre (pbl) and ₹20 pbl for stronger beers containing 5-8% alcohol. Earlier, the ED on beer was ₹10 pbl, irrespective of alcohol content.

Karnataka has made it mandatory for breweries to prepare beer – fermented liquor “from malt or grain with or without sugar and hops, and include ale, black beer, porter, stout and spruce beer” and ensuring that the sugar content is “not more than 25% by weight.” Breweries have been asked to declare the ingredients of beer.

In Karnataka, nearly 75% of total beer sales is accounted for by strong beers and some of the breweries ferment using high sugar instead of malt.

The Congress government explained that the hike was necessary to plug the revenue gap in the excise department, despite increase in liquor sales. The President of the Federation of Wine Merchants’ Associations, Karunakar Hegde said the hike is going to impact the market adversely. He added that supplies of beer had been affected and production had slowed down.

UBL, AB InBev, Carlsberg jointly form Brewers’ Association of India

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In a move that might not be surprising to many, India’s leading beer manufacturers United Breweries – controlled by Dutch manufacturer Heineken, AB InBev, and Carlsberg have come together to jointly forming a new industry body Brewers’ Association of India (BAI). The three companies own the 85% of the beer market in India via their brands Budweiser, Hoegaarden, Corona, Carlsberg, Tuborg among others.

While UBL leads the Indian beer market with its brands Kingfisher, Kalyani Black, Heineken, Amstel Bier. BAI, which is formed in partnership with the World Brewing Alliance (WBA), and is expected to focus on growing the beer category in India, drive innovation, moderation, and sustainability in the Indian beer market.

WBA is the global industry body consisting of brewers and brewing trade associations from leading markets, including Australia, Canada, the US, Europe, Japan, Korea, Latin America, Brazil, and New Zealand.

BAI is headquartered in Delhi and is going to be headed by Vinod Giri, who will assume office on June 1, 2024. Giri until now was heading the Confederation of Indian Alcoholic Beverage Companies (CIABC), the apex body of the Indian alcoholic beverage industry.

“The time is right for brewers to raise their voice on these issues. The Brewers of India will be a vital part of promoting moderate drinking, promoting our industry,” said Justin Kissinger, President and CEO, WBA.

The new association will also be open to other brewers, Indian and international both, who share the belief in growing the Indian beer industry responsibly.

AB InBev India President Kartikeya Sharma said, “There are many barriers to the growth of India’s beer category, including inequitable taxation, accessibility, and the ease of doing business. We will continue to advocate to unlock a new era for the beer category.”

Carlsberg India MD Nilesh Patel said, “The beer industry is an important sector for the states as it provides significant direct and indirect employment and generates significant revenues for the state to invest for its citizens.

“Through the Brewers’ Association of India, the industry expects to bring best global practices and further strengthen the sector.”

UBL MD & CEO Vivek Gupta said, “Together, the industry can help shape policies promoting responsible choices for consumers around moderate alcohol beverages, a robust taxation and regulatory framework and promoting investments for socio-economic benefits. We look forward to collaborate with governments and other stakeholders.”

The three companies have significantly invested in India. While Carlsberg operates seven breweries, UBL has 19 and AB InBev India has 10 of them across the country.

The Rise of Craft Beer and a Burgeoning Microbrewery Segment in India

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Recent years have seen the rise of craft beer, a new crop of premium beer produced in small batches by independent producers. There are now strong indications that the growing demand for craft beer is paving the way for new microbreweries in India.

The beer industry in India has emerged in the last two decades to become a thriving money spinner today. Just a few decades ago, it wasn’t commonplace to find modern bars, restobars, lounges, and even friends sitting over a few beers. Today, there’s a new culture of brewing in India, even among millennials and Gen Zs, and beer has become trendy. As of 2022, the beer market was valued at 383.6 billion, growing at a CAGR of 8.1%, and expected to reach 622.4 billion by 2028.

Recent years have also seen the rise of craft beer, a new crop of premium beer produced in small batches by independent producers, with an emphasis on new and evolving flavours, enthusiasm, and techniques. There are now strong indications that the growing demand for craft beer is paving the way for microbreweries in India. Some industry players believe this is only the start of a journey that can transform the beer scene much more significantly.

Craft beer flexibility and a burgeoning segment

There’s a growing crop of craft beer producers and brands in India who seem determined to take over the beer market with what they call a breath of fresh air. “Being true to style and ingredients, the experience that craft beer provides in terms of flavour, aroma and array of styles has led to the growth of craft beer the world over. We often say that once one has tasted true craft, he’ll never go back to industrial lager, especially if craft is available within reach.

“This is the reason that the world and, indeed, India are seeing the growth of microbreweries. Industrial lager literally offers one-style-fits-all products, whereas craft gives the choice back to the consumer for its preferred taste profile and styles,” said Upesh Gulati, Founder, Strategist, and Master Brewer, Effingut Breweries Pvt Ltd.

Over the years, Effingut has taken pride in introducing patrons to various different styles from around the world. With 16 different craft beers on tap, there is a flavour for each and every patron to enjoy. As of today, Effingut has a pan-India presence with three different verticals across four cities that cater to any kind of patron. This includes the Effingut 2 Go boutique stores, Effingut Bistros, and The Effingut Brewpubs and Taprooms.

Rather than release large batches of single-flavour, often mundane beers, microbreweries offer a variety of tastes and flavours based on the changing preferences of consumers and innovativeness of producers. As more adventurous beer enthusiasts emerge, craft beer makers have to continually innovate and expand to meet growing demands. According to Dr. Nishant Grover, Brew Master at Hotel The Royal Plaza, craft beer has quickly become a trend in India.

“There are several factors responsible for the growth of microbreweries in India. First is the shifting consumer tastes and the desire for distinctive and expensive beverages, as well as the fact that they are becoming more daring and discriminatory in their taste preferences. Second, increasing disposable income has also contributed to the growth of microbreweries, and lastly, we must acknowledge the encouraging government policies that are making microbreweries like our own The Royal Brewery Bistro to thrive,” he says.

Creating richer experiences with richer flavours

Microbreweries like The Royal Brewery Bistro are also being fostered by the craze for the culture by both local and international tourists and beer enthusiasts. This contributes to the overall tourism sector in India. Beyond that, the most important changes are the ones seen in the lives of budding beer drinkers in India. Younger Indians are becoming adventurous and seek out newer tastes each new day.

“After a long hectic day at work, people would stop by a bar to relax with a mug of their favourite beer in hand. But now with changing demographics, millennials and Gen Zs, people’s taste for beer is also undergoing a shift. They are looking for something different to explore and experiment including their consumption of alcoholic beverages. It was only 20 years ago that the first breweries opened in the industrial city of Gurugram. Today, there are microbreweries spurring across the country. Well-known internationally trained brewers are brewing international quality beer recipes in new-world pubs and bars across the country. As the best quality raw material is available with ease, production becomes less hassle, this is why craft beer availability is spreading across the country. Multiple yearly events on brewing and brewing equipment have also propelled information sharing and technical know-how for the industry,” explains Sandeep Singh Katiyar, CEO of The Finch, one of the finest premium luxury lounges in India, known for its extensive range of freshly brewed craft beer.

Breaking the odds, surging ahead

There’s still a long way to go. The craft beer culture may be growing in popularity, but it is still relatively young in India. Brewing has certainly become easier because quality ingredients are easier to come by and the manufacturing process has been simplified. However, there’s a long path ahead, and it is rough and rocky. There’s need for both the central and state governments to support the segment and its operators for them to thrive even better and ensure the growth is smooth.

As Katiyar of The Finch puts it, “The new brewery policies in Haryana, Karnataka, Maharashtra, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh have helped craft beer businesses scale to new heights. However, craft beer and microbreweries yet have a long path to cover and have plenty of hindrances to cross in the upcoming years. The industry requires care, support, and nurture from the state and central governments. With the government’s support, the smooth growth of microbreweries can be ensured.”

The idea of authenticity loved by millennials is what is spurring the growth in the industry, and there’s need to support the over 200 microbreweries in India to succeed, while also ensuring new ones emerge, especially in far-flung cities and towns where they’re currently non-existent.

“It’s no secret millennials live life differently. Things no longer matter. Experiences do. Indeed, the potential rise of craft beer has paved way for many microbreweries in India. Millennials are clearly choosing experiences over things, fuelling the homecoming of microbreweries. They now know that there is much to the world of beer than just the dull and mass-produced bottled hard liquor. With hints of chocolate or sweet caramel, floral hops or fruity notes, rich coffee undercurrents and more – the options are tempting and endless. Today, India is now growing its own craft culture one sip at a time, and it will get even better in the future,” notes Anirudh Khanna Managing Director, Independence Brewing Company.