What India's booming alternative beverage market says about our drinking habits

When the pandemic hit India, many brought the bar home, retiring to their rooms with a much-needed tipple after office hours. Others saw this as an opportunity to cut back on their drinking for health reasons and remained committed to new habits even after the lockdown restrictions were eased and bars resumed business.

Part of the shift is owing to the staggering range of drinks showcased in beverage aisles of supermarkets and wine shops across Indian metros. The shelves abound with a panoply of non-alcoholic, ready-to-drink and low-ABV beverages, attractively packaged in uncommonly designed bottles, boasting claims that make choosing for the conscious drinker both thrilling and a challenge. 

New light

It’s hard to pinpoint one reason for this boom in India’s alternative beverage market, but the country’s gin revolution in the last few years has played a key role in it. “We always planned to be a big beverage company, but our choice to launch tonics as our first core category has everything to do with the spotlight on gin,” says Aneesh Bhasin, co-founder of Svami, one of India’s leading beverage retailers speciliaising in mixers, ready-to-drink beverages and non-alcoholic drinks.  

Over the last three years, brands such as Mumbai-based Svami and Delhi-based Sepoy & Co. have lured consumers with premium tonics in sophisticated flavours, pitching their drinks as progressive alternatives for those who are conscious about their calorie and sugar intake. Part of Svami’s large portfolio are a light tonic water and the 3 Cal Tonic, which Bhasin calls “the diet tonic to our original tonic—just as Diet Coke is to Coke”. And though it’s not explicitly communicated on the bottles, Svami’s five-variant strong tonic portfolio is marketed as fizzy drinks with a much lower sugar percentage compared to mass brands.

According to Aman Gupta, there’s a robust segment actively opting for beverages that they deem “better”, whether it's low-ABV, low sugar or negligible calories. In February this year, the founder of the premium mineral water company, VEEN, introduced Zero Percent in metros across India. An emerging category that relies on de-alcoholisation tech to extract alcohol from the spirit or wine, Zero Percent seeks to promote a mindful lifestyle. “Our TG is broadly between 18 and 50, because people have different reasons for wanting to consume lesser alcohol, but we’ve noticed that the younger crowd is opting for more conscious choices, more so during the pandemic.” 

Typically, a zero percent drink retains the botanical profile or flavour of a spirit, so that a former alcohol-enthusiast doesn’t feel left out. And just as vegan, sugar-free and gluten-free offerings have semi-colonised menus and the conversations across restaurants and bars, patrons of de-alcoholised potations are confident that Zero Percent will take. 

Up for it

However, it’s not simply the millennial-Gen Z obsession with wellness that is driving this explosion in the beverage aisle. As a country that has always loved its drinks but played it safe hitherto, we’re now batting for the new, the trendy and the unexplored like never before. The burgeoning Indian alcohol scene is proof of this. “There’s a flurry of new gin brands and people launching spirits, the consumer is actively seeking more options,” says Bhasin. Within the span of just one year, Svami launched an award-winning 12-drink portfolio comprising salted lemonade, a 2 cal cola, ginger ale, and a G&T and Rum & Cola (both non-alcoholic). “Our NA drinks are popular at baby showers so that the to-be mother doesn't feel left out and our Rum & Cola has found a ripe market in cities like Bhuj,” Bhasin continues. “Rum & Cola is practically India’s national cocktail and our salted lemonade is inspired by the country’s beloved fresh lime soda—launching these two was really a no-brainer for us.”

Hard seltzer evangelists have also caught a whiff of this hankering for the untraditional. After riding a decade-long wave in America, the category has belatedly emerged in India this year, luring the young and adventurous with a drink that’s versatile, easy-going, delicious and, most importantly, significantly low in alcohol content (typically 5per cent). “You have the hard gins and the rums on one end of the spectrum, and zero percent on the opposite end. We wanted to fill that middle gap, the low-ABV category,” says Jeet Khandwala, co-founder of Raya, a Goa-based hard seltzer brand that’s slated for a December launch.

Raya will join existing hard seltzer players such as Speak Easy, Bro Seltzer and Flo—all launched during the pandemic. Cousins turned co-founders Jeet and Saahil Khandwala, who are self-confessed F&B enthusiasts, were keen to launch something “for modern Indian professionals who are familiar with trends in the West and have a palate for quality craft products”. Raya, which will be available in three variants, is crafted with their proprietary spirit as well as natural and local ingredients and alkaline water for added hydration.

Go hard and go home

Goa-based Guru Anamalli, who has switched to drinking hard seltzers exclusively, falls into the expanding bracket of young fitness fiends looking for healthier beverage options. During the lockdown, the 30-year-old design head of an Australian IT firm found the motivation to adopt a cleaner lifestyle which, in addition to exercising, also required him to reduce his carb and sugar intake. “I love getting an easy buzz going, but the only light options in terms of drinks were beers and Breezers, both of which are pumped with carbs and sugar,” says Guru, who has practically renounced hard drinks. “I have to plan for a night of alcohol, prepare for a possible hangover the next day and so on. With a hard seltzer, the buzz is clean, the sugar and calories are kept to a minimum and it’s quite tasty. It doesn’t feel like I'm cheating, and I can pop one any time of the day.”

Pursue's hard seltzer is also slated to be unveiled next month, and like Raya, will be targeted at the Monday to Sunday crowd that wants something fairly nuanced, fun and adaptable to all social situations. In addition to a clean buzz, hard seltzer purveyors appeal to their TG with gains like no artificial flavours, less sugar and limited calories. “Hard seltzer is the option C for those who enjoy their beer and wine but want something easier, not too serious,” says Anish Reddy, founder of Pursue. “The gin revolution was the litmus test for us. India is ready to embrace cool, premium, complex craft beverages that are celebratory in nature and allow you to drink responsibly,” he says.

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