How This Alcobev Startup Is Taking Non-Alcohol Route To Become INR 100 Cr Brand By FY25

In the last decade or so, the Indian beverage industry, once dominated by legacy brands like Coca-Cola, Pepsi, Thums Up, Tropicana and Real, has witnessed a paradigm shift in consumer preferences. These changes have been driven by evolving lifestyles, increased focus on health, and market innovations. It is on the back of this shift that the non-alcoholic beverages market in India, valued at INR 1.37 Lakh Cr in FY23, is projected to reach INR 1.98 Lakh Cr by FY28.

Consequently, several new-age brands like Paper Boat, Storia, Lahori, Jimmy’s Cocktails, Raskik, and Sober have emerged to capture a juicy chunk of this growing market. While most of these brands are focussed on either offering unique flavours or packagings, RockClimber, a new kid on the block, wants to lock horns with all its rivals by staying laser-focussed on curbing fruit wastage.

How? Well, for this, we will have to understand what forms the core of RockClimber, a beverage brand founded by Deepak Poduval and ex-Wipro executive Hariprasad Shetty in 2021. 

At the heart of the startup’s operations is procurement of surplus fruits from small farmers. This strategy not only helps the startup keep its procurement costs to a bare minimum but also prevents the wastage of unsold fruits, eventually helping farmers curb their losses. Further, the startup boasts that its fruit beverages and spirits are crafted for the Indian market with locally grown fruits with little to no preservatives and sugar.

“Every year, India faces the issue of large-scale fruit wastage, primarily because fresh produce needs timely sourcing and immediate consumption. Every year, INR 6,000 Cr worth of fruits is wasted. The wastage in 2023 stood at INR 10,000 Cr, prompting us to begin our journey of ensuring timely procurement for our business,” Poduval said. 

The brand has expanded its direct fruit procurement to a base of 2 Lakh farmers and aims to grow this number to 10 Lakh with due course of time. It is available at 5,000 retail outlets in 11 states, including Punjab, Rajasthan, Arunachal Pradesh, Goa, and West Bengal. It has sold more than 2.2 Mn bottles (both alcoholic and non alcoholic beverages) to date. Apart from India, RockClimber has its presence in the Middle East.

As per Poduval, the brand’s FY24 revenues stood at INR 25 Cr, up INR 7 Cr in FY23. In the first quarter of FY25, the brand has already generated over INR 18 Cr in revenue and anticipates reaching INR 100 Cr by the end of FY25. 

According to the cofounder, the revenue target for FY25 is set at INR 60-70 Cr from domestic sales and INR 30-35 Cr from international markets. 

The startup has so far raised $2 Mn from a group of individual small investors and angel investors. It is planning to raise another $5 Mn in the coming months.

RockClimber’s Early Learnings

Unlike many new-age startups, the cofounders began their journey with an offline-first approach. “We prioritised being present in physical spaces and increasing visibility over simply garnering likes and shares on social media. We believed that social media engagement would follow suit,” Poduval said.

He added this key decision (offline-first strategy) has helped them bag explosive growth since their incorporation. “I believe this is a very effective initial strategy for a consumer brand, as it allows us to maintain a zero-burn model,” the cofounder said.

Nevertheless, the cofounders plan to enhance the startup’s online presence by revamping their website by August and partnering with quick commerce platforms as a first step.

Starting with three SKUs in wine coolers category, the brand has since expanded to six SKUs in the non-alcoholic beverages category. Although the startup initially focussed on various fruit-based wine coolers, it has shifted its focus towards non-alcoholic options, well aligned with the cofounders’ desire to cater to a broader audience. 

While predicting 70% of the startup’s FY25 revenues to come from non-alcoholic beverages, Poduval highlighted that the startup’s flagship product is a premium, alcohol-free celebration drink that resembles champagne.

Currently, the brand is planning to launch an energy drink. The product has yet to make its debut in the consumer market.

The cofounder said that there is enough white space in the energy drink space in the country. He added that the space is largely unexplored in India compared to the West. 

“There is also a lack of healthier options in this space. So, our focus is on creating a healthy energy drink with no sugar, using natural fruit sweetness, and eliminating elements that typically categorise energy drinks as unhealthy,” Poduval said.

What’s Next For RockClimber 

As the world of beverages expands with new brands experimenting with packaging and flavours, RockClimber wants to distinguish itself by separating itself from the term flavour, as the brand uses real fruit. 

Currently, with a small team of 16 individuals, the company is undergoing a rebranding spree. It has plans to launch a new logo and revamp its website. Further, the startup aims to expand into the MENA region, particularly in GCC countries. They are also in early discussions with investors to raise $5 Mn in FY25. In addition, the cofounders anticipate that RockClimber will become an INR 100 Cr by the end of this fiscal. 

Additionally, in the next few days, it will be launching an AI-based B2B platform, fruit.io, to address the issue of fruit wastage in India. The platform will connect farmers with large buyers, traders, and retailers globally, aiming to reduce fruit wastage through technology, paving the way for direct procurement.

Going ahead, the cofounders are optimistic that expanding into quick commerce and online channels, along with targeting the MENA region, will significantly drive the brand’s growth. 

However, securing listings on quick commerce platforms presents multiple challenges such as cut-throat competition, platform-specific regulations, and delivery complexities. For now, it will be worth the wait to witness RockClimber metamorphose into an INR 100 Cr revenue-generating brand by the end of this fiscal year.

[Edited by Shishir Parasher]