Following the success of its tasting room in Goa, which was launched five months ago, Ochre Spirits, a Goa-based flavored spirits brand, is now gearing up to introduce its products in Karnataka and Maharashtra. The brand’s initial offerings, including a berry-flavored rum and a peach and cherry-flavored vodka, have been well-received in Goa and are poised to captivate new markets.
Established in 2023, Ochre Spirits swiftly captured attention in the Indian alcohol market, capitalizing on the growing trend among consumers to explore new experiences. Its founder, John Royerr, with over a decade of experience in the liquor industry, envisioned a product that would cater to those seeking a smoother drinking experience. “Many people enjoy beer, but they think hard liquor is too strong,” he explains. “We wanted to create something that makes the drinking experience much better and smoother, with no burn on the throat.” The brand is witnessing 65% of the traction from rum category and rest from Vodka.
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During the pandemic, Royerr and his team focused on developing blends that cut down on sugar, catering to the evolving cocktail culture. “Each drink contains a minimum of 50 grams of sugar. We wanted to offer something that people could enjoy without the excess sugar,” he says.
Eye on Market Expansion
At present, the brand is in 185 retail stores and 40 on-premises venues, with plans to expand to 350 retail outlets and 120 on-premises locations by July. Over the next four years, Ochre Spirits aims to secure over 10% of the premium flavored spirits segment in India and 5-7% of the craft spirits market, showcasing its confidence in product quality and market strategy.
Royerr highlights the potential of the Indian market despite its fragmentation. “India’s population means that even a small percentage of consumers represents a large number. The artisanal segment has been growing steadily, and there’s room for new players,” he notes.
Challenges and Strategies in the Spirits Market
Competing in a market dominated by established brands is no small feat. “Taking away market share from larger players is difficult due to their established trust and distribution channels,” Royerr admits. However, Ochre Spirits aims to attract new-age consumers, particularly millennials and Gen Z, who are more open to experimenting with different types of spirits.
“There are two distinct groups of consumers: those who stick to what they know and are comfortable with, and the new generation who are more adventurous with their spirit choices. It’s this latter group that presents a promising future for the rum market, as they’re likely to continue exploring and consuming spirits for decades to come. We’re working towards tapping into this market segment and meeting their evolving preferences,” he says.
“The premiumization of rum has started over the last two to three years. Consumers are willing to pay more for a good product,” he explains. The company’s strategy involves offering quality products at competitive prices, with their premium rum priced around INR 1450, compared to the usual INR 750.
Navigating Market Complexities
Royerr is candid about the complexities of the Indian alcohol market, where different states have varying regulations and consumer preferences. “Understanding distribution networks and market dynamics is crucial for survival,” he says.
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He also acknowledges the challenges posed by the discount game many new brands play. “Discounts are not sustainable in the long run. Consumers today are more willing to try new things, but they also seek quality. If your product is good, they’ll come back, regardless of the price.”
In terms of production, the brand is maintaining a sustainability in number. Royerr informs that they aim for around 10 to 12,000 cases in the first fiscal year, considering various bottle sizes such as 750 ml or 2750 ml.
Future roadmap
Looking ahead, Ochre Spirits has ambitious plans. Domestically, the brand will focus on expanding its presence in Karnataka, Maharashtra, and eventually other states. Internationally, they are eyeing the Middle East and South Korea. “We see great potential in South Korea, a country known for its love of flavoured spirits. We’re currently in advanced discussions with several distributors there, and if all goes well, we aim to enter the market by the fourth quarter of this fiscal year,” Royerr reveals.
The company is also diversifying its product line, planning to launch gin and whiskey, and add more flavors to its existing rum and vodka categories. This multi-category approach allows Ochre Spirits to tap into a broader market within each city, maximizing its reach and potential.
Despite the competition, Royerr remains optimistic. “The market is huge, and there’s room for many players. The key is to have a solid business strategy and understand the market dynamics,” he emphasizes.
Ochre Spirits aims to carve out its niche by focusing on quality, sustainability, and strategic market entry, ensuring that it not only survives but thrives in the competitive spirits industry. “It’s not just about surviving; it’s about creating a lasting brand that consumers trust and enjoy,” Royerr concludes.
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