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| Edited By: Ashish K Tiwari |Source: DNA |Updated: Jan 15, 2019, 06:30 AM IST
A chartered accountant by qualification and a banker by profession, he took the entrepreneurial plunge after seeing the potential for non-alcoholic beverages in the fast moving consumer goods (FMCG) sector. Pankaj Aswani, managing director, Coolberg Beverages Pvt Ltd, launched India's first crafted zero alcohol beer back in 2016. In a chat with Ashish K Tiwari, he speaks about the business foray, market traction for the beverage and future plans.
It's a different sector for a CA who moved into banking followed by launching a start-up. The dynamics are different but overall understanding of the market helps. Coolberg started because I am a teetotaller and used to face the problem of beverage options when socialising with friends. I came across this concept of non-alcoholic beer during one of my overseas trips and that's how the business idea came to my mind. There are a lot of people in India who don't consume alcohol and this beverage presented a good opportunity to fill the gap between alcohol and zero alcohol drink. We launched the venture in 2016 with the brand Coolberg and we currently have 100 people in the company. It was conceptualised with the idea of targeting the millennial segment who want to socialise but stay away from alcohol.
Overseas, the market is gaining momentum, especially in Europe and the Middle East. Globally, zero alcohol beer market was estimated at over $4 billion in 2017 and is growing rapidly. In Europe, bigger brands like Heineken have come up with 0.0% alcohol. Also, in the Middle East, the concept of non-alcoholic beer is well-known as liquor is restricted or prohibited due to religious and cultural reasons.
Entering the market was easier because no such beverage was available in India. Our brand Coolberg is the only offering addressing this segment with a very high-quality product. Positioned at the premium end of the market, the brand features multiple crafted zero alcohol choices in its portfolio. The malt beer is exactly like beer but without alcohol, so you will find the same taste, aroma and even the feel of the beer. We also have other crafted variants such as cranberry, peach, strawberry, mint and ginger all priced at Rs 109 for a 300 ml bottle.
We are currently available in Maharashtra, Gujarat, Madhya Pradesh, South India and few major cities in East and North India. Over the last two years, we have expanded reach to over 30 major Indian cities and are now serving in over 2,000 restaurants and cafes across the country. Selling over 10,000 cases a month, the immediate plan is to double this number and reach five lakh bottles per month. The current production capacity is 50,000 cases a month so there's still lots to do in terms of market penetration. We are still at 30-40% capacity utilisation. The beverage is only available in glass bottles but we'll soon introduce it in 250 ml cans as well.
We started the business with our own money. We raised seed funding from India Quotient Advisers and Indian Angel Network in 2018. We will be looking to raise a larger sum in the middle of next fiscal. The number is yet to be finalised as we are still working on our expansion plans. This deployment will be for brand building and deeper market penetration.
A lot of our spends in on marketing, the sampling of the product and we are also trying to balance with it with revenues. Last financial year we were profitable and this year we are trying to find the right balance with revenue and spend without burning aggressively. This segment is in the early stages and there is long way to go to build the market.
