Post-Covid spurt helps Goa’s alcohol industry experience record growth

Panaji: The post-pandemic rush, particularly among the young, to try out new experiences has spurred a renaissance in Goa’s alcohol industry. This has resulted in award-winning distillations that have put the sunny state on the global map. Aside from the tourism and party capital tag, Goa’s liberal excise norms make it a perfect launch pad for new alcoholic beverages and innovative distillers have taken notice.From flavoured Ready to Drink (RTD) pints and seltzers to gin and mead, entrepreneurs are taking advantage of the easy availability of distilleries in Goa to try their hand at crafting brews to suit different palates.“Goa is a hotbed for craft, demand for which is growing rapidly both in India and globally among consumers who are keen to further discover and enjoy fine spirits,” said managing director and chief executive officer of Diageo India, Hina Nagarajan.The seeds for Goa’s emergence as a hotbed for innovation in the alcohol space were sown in 2015 when Nao Spirits set up shop with the singular aim to craft a homegrown gin – Greater Than — using local botanicals. In 2018, Stranger and Sons hit the market and suddenly the gin industry was on fire.Market research firm Coherent Market Insights estimates that India’s gin market is projected to reach around $413.7 million by the end of 2027 in terms of revenue, growing at CAGR of 5%. This prompted many to take notice and Goa is today home to close to 20 native gins that have sworn patrons.The latest kid on the block is the Tonia Group, which launched a Genever-type gin, Forest Spice, that bagged two awards at the Spiritz Selection Awards 2022 within just three months of its launch.“There have been 15 to 20 launches in the gin space in just the last two years. Goa is a microcosm where people from Bengaluru, Delhi, Mumbai and other states come. The excise laws are very friendly for smaller manufacturers and thus Goa is inexpensive in terms of an entry point,” said managing director of the Tonia Group, Mario Sequeira.As of December 2021, Goa is home to 92 registered liquor manufacturing units, including distilleries, beer breweries, and micro-breweries. The total number of excise licences issued to stores, bars and taverns in the tiny state stand at 12,606, most of them in Bardez and Salcete. Together, these contribute Rs 480 crore to Rs 500 crore to the excise department’s revenue.India’s alcohol market is predicted to record a CAGR of 7.4% by the end of 2026, and Goa is the premier launch pad for companies that want a share of the market. Goa has the country’s highest percentage of men in the 15-49 age group who drink alcohol, at 59%, according to the National Family Health Survey (NFHS)-5.While the predominant choice of tipple remains beer and whiskey, the growth in other botanical spirits and craft brews is also noticeable.Adventurous alcohol producers are willing to push the envelope as they try to cater to the evolving drinking preferences of the younger generation in the Indian subcontinent. Honey mead, Nilgiri tea, tulsi, white turmeric and even rice have made it to the list of ingredients as alcohol entrepreneurs get creative.“Covid has helped people rediscover themselves and throw away their inhibitions. They want to taste something new. Goa is now the launch pad. Things start here,” said Sequeira.Banker-turned-blender Kasturi Banerjee chose Goa to start her venture, Stilldistilling Spirit. Starting in the midst of the Covid-19 pandemic, Banerjee started Maka Zai (I want, in Konkani), an artisanal rum.“We manufactured in Goa and first distributed in Goa because in 2020 it made the best sense to manufacture in Goa. I did a lot of research about distilleries in Maharashtra, but, at the end of the day, I felt that Goa is much more welcoming towards innovators. Look at Paul John, look at Greater Than and Stranger and Sons, these are well established brands coming out of Goa. So for a new entrepreneur, it gives you hope,” Banerjee said.Not to be left behind, Diageo India, which is one of the country’s leading alcohol manufacturers, recently invested Rs 45 crore to set up a craft and innovation hub in Ponda that can distill malt, gin and rum, undertake blending of spirits. When fully operational, it will have a capacity to produce 20,000 cases a month.Nagarajan said that the hub will serve as an incubator for startups in the alcohol beverage space. Diageo India has also acquired a strategic minority stake in Nao Spirits, the makers of award-winning gin brands Hapusa and Greater Than.