The alco-beverage (alco-bev) sector has undergone a significant transformation in recent years, especially with the rise of Direct-to-Consumer (D2C) models and digital engagement strategies. At the IReCxD2C Summit in Bengaluru, industry leaders gathered to discuss how brands can engage with consumers, navigate regulatory challenges, and adapt to the evolving market landscape. This feature story delves into the insights shared by Ajay Shetty, CEO of Salud Beverages Pvt. Ltd; Shivam Ginglani, Founder and CEO of Woodsmen Mountain Whiskey; Lalit Kalani, Founder of Rock Paper Rum; and Jitin Merani, Co-Founder of Glenwalk, highlighting the innovative approaches these brands are taking to thrive in the alco-bev sector.

The Power of Sampling and Storytelling

For many alco-bev brands, the key to building brand loyalty lies in direct consumer engagement. Shivam Ginglani of Woodsmen Mountain Whiskey emphasizes the importance of "Liquid on Lips" (LOL), a strategy focused on getting the product directly into consumers' hands. "Every week, we are out taking over a bar or doing an event to ensure people taste our whisky. Once they try it, they no longer need much convincing," says Ginglani. This hands-on approach not only builds brand awareness but also fosters a personal connection with consumers.

Lalit Kalani of Rock Paper Rum shares a similar sentiment, noting that post their appearance on Shark Tank, brand awareness soared, although they still rely heavily on traditional distribution channels. "We've seen traffic grow on our website and social media. It's incredible to receive positive feedback from consumers across the country," Kalani remarks.

Leveraging Digital Platforms and Celebrities

Digital engagement and leveraging celebrity endorsements have become crucial for alco-bev brands. Jitin Merani of Glenwalk highlights the impact of their collaboration with Bollywood actor Sanjay Dutt. "When Sanjay Dutt launched his whisky, it became news rather than an advertisement. We got more than 100 press articles in nine days, boosting our brand's visibility tremendously," says Merani. This organic media coverage, coupled with strategic social media campaigns, has helped Glenwalk create a strong market presence.

Understanding Market Nuances

One of the biggest hurdles for alco-bev brands is navigating the complex regulatory landscape, which varies significantly across states. "Alcohol is a state subject in India, and prices can vary drastically from one state to another," explains Jitin Merani. "For example, a bottle of whisky might cost Rs 2,000 in Maharashtra and Rs 4,200 in Karnataka. We have to maintain separate stocks and labels for each state."

Ajay Shetty of Salud Beverages, a two-time entrepreneur in the liquor space, adds that understanding these nuances is crucial. "You have to learn to play with the cards you're dealt with. There are rules and restrictions, but a clear vision and passion for the product can help you navigate these challenges."

Overcoming Import and Supply Chain Issues

Supply chain management is another critical aspect, especially for brands that rely on imported products. "Our whisky is made in Scotland, and the shipping time has increased to six months due to the Gulf War," shares Jitin Merani. "We had to rework everything, and now we maintain stocks separately for every state." Despite these challenges, brands are finding ways to adapt and ensure a steady supply of their products.

The Rise of D2C Models

The emergence of D2C models has revolutionized the alco-bev sector, allowing brands to reach consumers directly. "The D2C model has been a game-changer, especially for newer brands looking to establish a market presence," says Ajay Shetty. "It allows us to engage directly with consumers and gather valuable feedback, which is essential for product innovation."

Innovative Marketing Strategies

In addition to traditional sampling and events, alco-bev brands are exploring innovative marketing strategies to stand out in a crowded market. Ajay Shetty of Salud Beverages has diversified into NFTs, music, and apparel to create a comprehensive lifestyle brand. "We created Salud Sessions, an IP where we own our DJs and music. This not only helps with brand visibility but also generates revenue," explains Shetty.

Shivam Ginglani of Woodsmen Mountain Whiskey focuses on simplicity and authenticity in marketing. "We market our whisky as a Himalayan product made in Solon. This clear, straightforward messaging makes it easy for consumers to recommend us to others," says Ginglani.

Future Trends in the Alco-Bev Sector

Premiumization is a significant trend in the alco-bev sector, with consumers increasingly seeking high-quality, authentic products. "Consumers are demanding more authenticity, and that's what we're trying to deliver with our Himalayan whisky," notes Shivam Ginglani. This shift towards premium products is evident across various categories, from whisky to rum.

Lalit Kalani of Rock Paper Rum highlights the opportunity for premiumization in the rum category. "Rum is the second-largest category in India after whisky, but there's still a lot of room for premiumization. We saw this as an opportunity to introduce a high-quality product that stands out in the market," says Kalani.

Technological advancements are also playing a crucial role in the alco-bev sector. Brands are using technology to streamline their operations and enhance consumer experiences. "We use technology to analyze market trends and optimize our sales strategies. This helps us target the right consumers and improve our overall efficiency," explains Shivam Ginglani.

Thus, the alco-bev sector is experiencing a dynamic transformation, driven by innovative consumer engagement strategies, navigating regulatory complexities, and the rise of D2C models. Brands like Salud Beverages, Woodsmen Mountain Whiskey, Rock Paper Rum, and Glenwalk are leading the way with their unique approaches to marketing, distribution, and product innovation. As the market continues to evolve, these brands are well-positioned to meet the growing demand for premium, authentic alco-bev products. The future looks promising for the alco-bev sector, with plenty of opportunities for new and established brands to thrive in this competitive landscape.