Luxury alcoholic drink startup O’Be Cocktails has announced that it will shut down its operations after half a decade of operation. According to the company’s CEO, Nitesh Prakash, the move is one of the hardest and ends a vision that sought to disrupt the ready-to-drink (RTD) cocktail segment in India.
Prakash announced the news in a LinkedIn post, revealing that after intense efforts to market the brand in the last one year, there was no suitable option left. He revealed that the company’s vision to create a premium and easy cocktail experience was not aligned with the ground realities of the Alcobev business, which he detailed had turned out to be a commodity business with very little consumer loyalty.
Founded in Bengaluru, O’Be Cocktails was backed by significant investment rounds. In August 2021, the company secured INR 3.5 crore in angel funding led by First Cheque and LetsVenture, with participation from Ola’s Bhavish Aggarwal, Tracxn’s Abhishek Goyal, and Sprout Investments. In November 2023, Inflection Point Ventures extended pre-Series A funding, though the amount remained undisclosed.
The company focused on the premium ready-to-serve cocktail market, selling its products mainly in Goa and Bengaluru. At its peak, O’Be Cocktails operated in nine Indian states and Bhutan, with support from 22 private institutions and two government contracts, distributing through over 1,700 premium wine shops.
Challenges in the RTD Market
O’Be Cocktails’ shutdown highlights the problems faced by RTD brands in India. The Alcobev business, though a major revenue earner for state governments, suffers from infrequent consumer loyalty and lacking support in ease of doing business. Contending brands like Jimmy’s Cocktails, Gateway Brewing, Bira 91, and Medusa still operate amidst similar issues.
The Road Ahead
The closure of O’Be Cocktails signals a shift in India’s RTD alcoholic beverages sector, raising questions about the sustainability of premium cocktail brands in an increasingly competitive and regulated market.
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