Alcoholic beverages startup O’Be Cocktails has officially shut down its operations after more than five years in the market. The decision was announced by Nitesh Prakash, the founder and CEO, who expressed that it was a challenging choice but necessary for the brand’s long-term vision.
Reasons for Shutdown
Prakash highlighted that the alcoholic beverage industry is highly commoditized, which conflicted with O’Be’s goal of providing a premium cocktail experience. Despite efforts to find a buyer over the past year, the company could not secure a sale, leading to the closure.
Background of O’Be Cocktails
Founded in July 2019, O’Be Cocktails aimed to revolutionize the ready-to-drink cocktail market in India. The startup raised ₹3.5 crore in an angel round led by notable investors including Bhavish Aggarwal of Ola and Abhishek Goyal of Tracxn. It also secured funding in a pre-Series A round in late 2023 to expand its operations.
O’Be Cocktails offered a variety of drinks, claiming to have perfected its recipes through numerous iterations. The brand was operational in nine states across India and Bhutan, supported by 22 private distributors and two government contracts, making its products available in over 1,700 premium wine outlets.
Industry Insights
O’Be Cocktails faced significant challenges in a competitive market filled with established players like Jimmy’s Cocktails and Bira 91. The alcoholic beverage sector is valued at approximately $35 billion in India, with the ready-to-drink category still in its infancy but showing potential for growth.
Prakash noted that consumer preferences are shifting towards sustainable and premium products. However, the lack of support for the Alcobev industry has made it difficult for startups to thrive.