How AloFrut Is Bringing Ayurveda-Inspired Beverages To The Modern Indian Consumer

Ayurvedic products, long rooted in Indian tradition, have gained widespread popularity in recent years. During the Covid-19 pandemic, many turned to natural ingredients like turmeric, aloe vera, tulsi and ashwagandha because these core components of ayurveda are well-known as immunity boosters.

Homegrown businesses started developing ready-to-use ayurvedic remedies at scale as the demand for holistic wellness surged. Their USP: Seamlessly blending traditional knowledge with modern convenience.

Dr Hemlata Gupta set up Axiom Ayurveda in Ambala (Haryana) nearly three decades ago with a similar vision. The legacy business quickly gained a foothold in regional markets like Haryana and Punjab, offering a variety of ayurvedic beauty and personal care products (shampoo, body wash and conditioner), health and food supplements (chyawanprash and churma), oils and more.

In 2009, Rishabh Gupta (the late Hemlata’s grandson), a tech professional with a diploma in international marketing, set out on a new course and launched AloFrut, an ayurveda-inspired beverage brand. It entered the market in 2015 with five fruit flavours but rapidly expanded its product line to cater to varied tastes. The brand currently offers 48 SKUs under four categories –  juices, mocktails, energy drinks and green teas.

Its flagship is a proprietary fusion of aloe vera juice, pulp and fruit mixes produced at in-house manufacturing units in Kathua (Jammu) and Ambala. Stringent quality control is followed at each step, from procurement to production and packaging, so that people looking for a healthy dose of juice can start drinking a wholesome range of tasty beverages.

In 2023, Kolkata-based herbal-natural-focussed FMCG giant Emami acquired a 26% stake in Axiom to enter the packaged juice segment. The collaboration has boosted AloFrut’s pan-India growth drive, as it benefits from Emami’s focus on ayurvedic and natural products and robust distribution channels. The juice brand raised funding from Venture Catalysts++, a multi-stage VC firm based in Mumbai, for an undisclosed amount. AloFrut clocked INR 250 Cr+ revenue in FY24. 

How AloFrut Built Its Brand Identity From Scratch

“AloFrut blends the hydrating and nutritious essence of fruits with the wellness benefits of aloe vera, known for its digestive and immunity-boosting properties. This key ingredient, not commonly found in the beverages sold in the market, sets us apart,” explained Gupta.

Launching a product line under a legacy business like Axiom which has a daily consumption of 80 tonnes and creates employment for more than 5,000 farmers, should have been hassle-free. But it was anything but easy. 

For one, Axiom Ayurveda was not selling these juices; they were introduced under a new brand name. Hence, consumers could not connect the products with the long-standing presence of the parent company and the goodwill it has enjoyed.  

To build its brand identity and business from scratch, AloFrut invested heavily in marketing and ran awareness campaigns highlighting aloe vera’s health benefits.

It targeted health-conscious consumers through a marketing mix spanning ATL and BTL (for broad and targeted outreach, respectively), digital advertising, in-store communications and product sampling.

For mass appeal, the brand started a video campaign “Alo Tussi vi lelo” to invite everyone to indulge in the refreshing taste of AloFrut juices. “With our recent campaign success and the shift towards enhancing taste experiences, we are committed to expanding AloFrut’s presence in every household,” said Rishabh Shukla, head ecommerce and marketing lead at AloFrut. 

Starting in its home state of Haryana, the brand adopted an offline-first approach to leverage Axiom’s existing distribution system. It gained much-need visibility through local shops and kirana stores, connecting with consumers at scale and building trust. 

Within a year of its launch, AloFrut expanded to southern India and finally opted for online sales in 2018. Products are now sold via its D2C site, on major marketplaces/grocery delivery platforms like Amazon, Flipkart and BigBasket and through modern trade (MT) channels like supermarkets.

Its digital foray came at a crucial time when affordable data rates (courtesy of Reliance Jio) fuelled ecommerce throughout India and kept businesses operational during Covid-19 pandemic. 

Meanwhile, the brand diversified its offerings and added as many as five fruit flavours to its product line. 

AloFrut received the prestigious AYUSH certification from the Indian government’s AYUSH ministry, affirming its adherence to ayurvedic principles and the use of traditional and natural ingredients. It also holds an FSSAI licence and operates GMP-compliant production units (developed in sync with Good Manufacturing Practices). 

These protocols have been set up to ensure that ingredients and finished products will ensure the safety and efficacy of ayurveda and other practices, thus building consumer confidence across the industry.    

“As our products are rooted in ayurveda, the AYUSH recognition is of great value to us. It validates our commitment to bring the essence of ayurveda to enhance health and wellness,” said Gupta.

More Game-Changers For AloFrut: Emami Investment & VC Support

Consumers sought plant-based and supplement-rich food and beverages as the pandemic triggered the demand for a healthy lifestyle and alternative healing practices like ayurveda. This change in the mindset saw a massive resurgence of ayurvedic products, with new and established brands vying for customer attention.

To stand out in this growing market, AloFrut boosted its digital presence, roping in cricketer Shikhar Dhawan and Bollywood actor Parineeti Chopra as brand ambassadors in 2021. The move came at a time when the brand launched an aloe vera-infused mocktail range, expanding its product line and targeting a younger consumer base.

A turning point came in September 2023, when Emami acquired a 26% stake in Axiom for an all-cash deal. Gupta says the deal has not changed the leadership structure, but the business has seen several strategic shifts.

For instance, AloFrut has made bold strides in R&D, experimenting with larger portions of aloe vera. Additionally, it focusses on taste preferences, making healthy beverages popular among new-age consumers.

Venture Catalysts++, a Mumbai-based multi-stage VC firm, has also been a key supporter. It has backed the brand through multiple funding rounds since 2022. According to Gupta, the VC firm’s expertise in scaling consumer brands has aligned well with his vision of expanding AloFrut’s market reach and driving product innovation. 

For context, the VC has invested in several ecommerce brands like Beardo, Clensta and Wicked Gud.

“VCats++ has provided invaluable mentorship. It helped us sharpen our business strategy and grow our network by connecting with key industry players, thus widening our market reach. Its guidance has been crucial in overcoming challenges and seizing new opportunities,” he added.

AloFrut’s Next Growth Move

The rising focus on R&D and the growing use of technology for procurement, production and quality control have increased the value of ayurvedic food and beverages among modern consumers. In fact, the Indian ayurvedic products market is estimated to reach $3,200 Bn by 2032 from $748.5 Bn in 2023, at a CAGR of 17.6%, as per a Research & Markets report.  

Aware of the growing opportunity, AloFrut uses its strong distribution network to tap into the unexplored Bharat market. Given the rising purchasing power of the non-metro populace and better internet penetration, Indian ecommerce may witness nearly 210 mn new online shoppers by 2030, and most of them are projected to come from Tier II cities and beyond.

Moreover, the ancient wisdom of ayurveda resonates well with non-metro consumers rooted in tradition. Hence, AloFrut can leverage Ayurveda’s strong appeal to enhance the brand’s visibility and reach. The brand’s growth strategy involves experimenting with new flavours, gathering customer feedback for product improvement and repositioning aloe vera as a taste enhancer, rather than just a health ingredient.

AloFrut and its peers like Real, B Natural, Tropicana, Paperboat and more are well-positioned to capitalise on these market opportunities due to their strong omnichannel initiatives and connections with modern consumers. 

AloFrut claims it is committed to the cause. But here is another glitch. The brand has yet to enter quick commerce despite its strong offline and online retail presence. 

Q-commerce is a vital distribution channel, especially for FMCG and food and beverage (F&B) brands, as instant gratification is the key to winning customers. By 2029, more than 60 Mn Indian shoppers could be on these platforms, with a projected market volume worth $9,951 Mn.     

That is a lot of market to miss out on, and AloFrut may have to explore this avenue soon.

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