The Indian beverage alcohol industry is now in what we term a ‘second wave’ of entrepreneurship. The first wave started in 2017 and saw more than 50 drink ventures until 2022.

Seeing the way these new age brands were capturing minds and wallet spaces amongst consumers and the bar fraternity, large multi-nationals and mid-sized Indian companies were jolted into action to launch their own craft spirits brands – or take substantial ownership stakes in some start-ups.

India’s first-ever absinthe brand, La’Ananta, was launched by Priyen Patel of Craft Alcobev (L). His Paapi brand (R) is also projected as Asia’s first coffee absinthe.

However, these large and mid-sized companies stayed focused on traditional spirits like whiskey and gin, product categories that were also closer to their DNA.

Many of these early entrepreneurs have since gone adrift due to a lack of clear product and market strategies, simply due to funds running out, or a combination of both. Despite this – and the fact that alcobev is the most challenging sectors due to the maze of frequently changing regulations and the need for deep pockets – the early movers helped inspire a second wave of entrepreneurship.

Kantala Spirits has launched six flavours of its Gracia Viva-Agave brand (R). Its founder, Suzann Homan (L), is also a qualified lawyer, professional baker and organic farmer.

NEW ‘FIRSTS’

We found great zeal in the creation of India’s first-ever absinthe brand, La’Ananta, launched by Priyen Patel of Mumbai-based Craft Alcobev. He aimed “to create something unique and unprecedented in India”. Priyen followed it up reasonably swiftly with Paapi, a coffee-flavoured absinthe, also projected as Asia’s first coffee absinthe.

Adarsh Gadvi, owner of Goa’s Naveen Distillery and founder of India’s first vermouth, says his Davana Indica is now available in Rosso and Bianco variants. Quro, a herbal liqueur made from a mix of 36 ingredients sourced from across the country, is the brainchild of Anmol Bansal of Inspired Spirits in Goa.

India’s native spirits are not far behind. Clement De Silva of Khushi Spirits in Goa has launched Aani Ek Feni in three flavours: honey cinnamon, lemon and chilli.

Flavour is also on trend for Clement De Silva’s (R) Aani Ek Feni from Khushi Spirits (L).

Flavour is also on trend for Kantala Spirits (again from Goa), which has launched six flavours of its Gracia Viva-Agave brand: Wildly Raw, Passion Fruit, Blueberry, Yuzzu, Ferry Foss and Cardamom and Cinnamon. Gracia uses agave spirit sourced from Agave Spirits India, a pioneer in the field – Desmondji, India’s first agave spirit brand.

The ’second wave’ entrepreneurs are no longer confining themselves to products that are wholly made in India. Shivankar Bahl of Delhi-based Diva Creations has created Las Maracas Tequila brand by sub-contracting to a Mexican distillery.

From their base in Delhi, Aakriti Kocchar and Raghav Sachdeva of Nuvola Spirits have created India’s first Limoncello in the form of Mikiamo. They import concentrate from Italy that is then blended and bottled in India.

Adarsh Gadvi of Naveen Distillery (R) is the founder of India’s first ever vermouth, Davana Indica, now available in Rosso and Bianco variants (L).

Along with these unique products, this new wave of entrepreneurs is also helping re-interpret the ‘I’ in IMFL. Sachin Bhambri (Surbhi Beverages) has launched Earth Rustic, India’s first spiced rum, along with Vijay Khalate in Goa.

Sanchit Agarwal and Nidhi Kedia, Co-founders of the Peacock Project Distilleries in Mumbai, have launched Nisaki, a colour-changing gin using the blue pea flower. Mayukh Hazarika has launched Cherrapunji, the first gin from North-East India, in an eye-catching aluminium bottle that uses rainwater in its product.

Aakriti Kocchar (R) and Raghav Sachdeva of Nuvola Spirits have created India’s first Limconcello in the form of Mikiamo (L). The concentrate is imported from Italy, then blended and bottled in India.

Perhaps most interesting of all is Huli, India’s first rum made from jaggery, the brainchild of Aruna Urs. Aruna and his team once sourced a jaggery spirit substrate from a bootlegger in a village near Mysuru, which convinced them it had commercial prospects!

LOCAL GROUNDING

John Royerr, who runs Ochre Spirits bar in Goa, noticed that many Indians found the legacy brand hard liquors too harsh, leading them to prefer lighter options like beer or other low-alcohol beverages. This revealed a unique opportunity in the market: a growing segment of consumers who wanted to explore spirits but needed a smooth and approachable way to enjoy their drink.

Since April 2024, Ochre Spirits has been bottling its signature flavoured drinks – Nutty Berry rum, Peach & Cherry vodka, and Saffron vodka – to deliver smooth and approachable flavour profiles. John uses real fruits and natural ingredients.

Grainotch makes GrainIce vodka (L), and its founder, Satyajit Holkar (R).

La’Ananta absinthe uses three local botanicals. Davana vermouth’s botanicals are also local. As mentioned, Quro liqueur uses 36 ingredients from across India. What could be more Indian than jaggery, as used in Huli rum?

For Clement’s Aani Ek feni, the chillies come from Pednem in Goa, as does the lemon. In the case of Cherrapunji, apart from being blessed by plentiful rainwater, Mayukh has also sourced several botanicals from the North-East, including Khasi mandarin, kaji Nemu, Sohamrit (forest pepper) and smoked tea.

Pradeep Choubey, an industry veteran having served with Diageo, Pernod Ricard, Bacardi and William Grant & Sons, embarked on his own entrepreneurial journey after the pandemic.

His Copper Wood Distilleries, with help from Koko Distilleries, has launched heritage rum and feni brands, Ron de Santacruz and 1219 Viva Goa respectively, in the Goa market, which have also chalked up sales in Canada and Australia.

The names are also proudly local, rather than mimicking the West. Davana is the Hindi word for wormwood, the primary ingredient in vermouth. Aani Ek is Konkani for “one more”. Huli (‘tiger’ in Kannada) is named after Huliyur village in Belagavi district from where the sugarcane is sourced.

Industry veteran Pradeep Choubey (L) chose to promote heritage spirits through his Copper Wood Distilleries. First-timer Mayur Hazarika (R) has launched Cherrapunji gin from Meghalaya using rainwater.

BUSINESS SENSE

Most ‘second wave’ entrepreneurs we spoke to are incredibly light on their feet with production. Goa offers a natural advantage with several distilleries that provide access to stills, raw materials, blending and packaging services.

Cherrapunji’s Mayukh is possibly one of the few outliers, due to his origins in Meghalaya, who has had to set up a small production facility there. However, creating a sense of provenance comes at a price. Huli’s Aruna Urs has spent nearly INR 2 crore already on renewing the micro-distillery’s license over the last 3 years!

Davana’s Adarsh is fortunate that his father’s existing facility, Naveen Distillers, helps make his vermouth dreams come true. The same is also true for Satyajit Holkar of Grainotch, which makes Grain Ice vodka. Nashik-based Grainotch is a major supplier of grain-neutral spirits, and from there, creating its own brand of vodka did not take much.

Most entrepreneurs we spoke to come from backgrounds outside the liquor industry. Clement of Aani Ek is an architect by profession; Aruna of Huli is a farmer; and Suzann of Gracia Viva-Agave, apart from being a qualified lawyer, also has a background in professional baking and organic farming.

Mayukh of Cherrapunji has primarily worked with youth-centric products. Raghav and Aakriti of Mikiamo are garment exporters; and Sanchit of Nisaki has a background in computer sciences.

Anmol Bansal of established Inspired Spirits (L) is the brain behind Quro herbal liqueur made from 36 ingredients sourced from across India. Sachin-Bhambri (R) has launched Earth Rustic, India’s first spiced rum.

Given this collective lack of experience, harnessing external expertise or acquiring much-needed skills in blending and distilling has been a way forward. These newcomers to the alcobev space have sought assistance from now-retired veteran master distillers and blenders – or like Adarsh at Davana, brought on board as a partner, Evgenii, who joined to help with contract manufacturing at Naveen, and who then helped jointly conceptualize and launch Davana.

Sachin of Earth Rum has as a partner, Vijay Khalate, who has over 25 years’ experience in blend development and bottling. Aruna has on board a ‘Chief Scientific Advisor’, Dr. Bhanavishankar, “the man behind Huli”.

DRAWING INSPIRATION

Indian and global entrepreneurs have largely inspired our next-gen entrepreneurs in the alcohol world. Vijay Mallya (of Kingfisher beer fame) is still a name to be reckoned with for many, including Piryen, Suzann and Satyajit.

Priyen says Vijay Mallya’s visionary leadership “transformed Kingfisher into India’s first international beer brand, elevating a local brand to global prominence.”

Other Indian drinks entrepreneurs have also been a source of inspiration. Aruna points to the late N.R. Jagdale of Amrut Distilleries, whose efforts in convincing the Karnataka government to make rum out of jaggery were crucial to getting Huli off the ground.

Sachin of Earth mentions Sameer Mahandru, the founder of BroCode, who “created an entirely new category in the industry and, through brilliant marketing, made consumers believe it was more than just a beer”.

For Aani Ek’s Clement, it is Desmond Nazareth of Desmondji who introduced agave liquor to India and created a Tequila equivalent. “He is now taking Mahua liquor to the world,” Clement notes.

John Royerr’s (R) Ochre Spirits has been bottling its signature, small batch flavoured Nutty Berry rum, Peach & Cherry vodka, and Saffron vodka.

Ochre Spirits’ John says the BrewDog founders from Scotland have been a significant source of inspiration. “Their unapologetic, no-holds-barred approach to building a brand has been nothing short of remarkable,” he says.

Pradeep of Copper Wood names James Pennefather, Managing Director of William Grant & Sons – “who taught me about branding and product development” – as his top inspiration.

The choice of role models is indicative of the ambitions that many of our new entrepreneurs have. Respect is something that they all aim for at the bare minimum, with a desire to be seen as a trusted brand by a loyal customer base and, as some say, a “category-defining brand”.

Expansion is on the cards for all, both in terms of domestic distribution and international markets. Although they may have started their journey in a particular drink category, they do not wish to be buttonholed by it. They plan to expand their product portfolio both within and beyond it continuously.

Shivankar Bahl of Diva Creations (L) has created the Las Maracas Tequila brand (R) by sub-contracting to a Mexican distillery.

Even as we write this article, we are aware of even more drinks entrepreneurs who are starting their journeys with exciting product and founder narratives. It can only be a matter of time before there’s yet another opportunity for us to write about them!

(With inputs from Roy Thomas)