Anand and Jangwal: seeing huge potential for tonic water

Adults in metro cities in the age bracket of 30-45 years over-index on gin and tonic consumption, points out Jangwal. “The general feedback for the popularity of gin as a spirit is because of the emergence of various craft premium gin brands now present in the Indian market and the variety of flavours/ botanicals possible with gins. There is also a general perception that gins are lower in calories and healthier comparatively.”

About 70 per cent of the time when a consumer is having gin, it is with tonic water, explains Jangwal. “Since the market for gin is growing, so is the tonic water market. As consumers’ preferences become more evolved, the greater the demand for premium offerings and variety in flavours. With consumers getting access to premium quality gins with exquisite botanicals and unique flavour combinations, they also wanted to move away from the typical overly-sweet tonic water that would overpower their drinks. They wanted tonics that enhance their gins instead, while being low in sugar and calories. Hence, the premium tonic water market emerged. Consumers have also become calorie-conscious and an increasing number of adults prefer tonic water that does not contain artificial preservatives, colours and flavouring.”

The response from the customers in premium retail outlets has been tremendous, says Anand. “Our 0 Cal. Tonic is turning out to be the top-selling SKU, followed by Bitter Lemon and Mint Tonic Water. In select modern trade stores we are present in, Peer has already captured a 10 per cent share of the sales value in the premium tonic water category.”

As the market for premium tonics and flavoured tonics is increasing, the whole tonic water drinking culture is moving beyond being only paired with gin, points out Jangwal. “With quality tonic waters in the market in exquisite flavours like mint, bitter lemon, tonic water consumption is not only limited to gin drinkers but also people who want to consume it as it is. The findings so far suggest that urban dwellers in the age bracket of 50+ particularly like Bitter Lemon Tonic without mixing any alcohol with it. People find the taste appealing, and like the fact that it is not sweet like conventional lemon-flavored soft drinks.”

The brand’s tonic flavours are receiving widespread appreciation from top mixologists and food critics, adds Anand. “We estimate that tequila may become a fast-growing category in the near future in India, looking at the growth in the American market. Tonic is now not only paired with gin but also enjoyed with other white spirits like vodka and tequila; so, there is huge potential in this space of beverage mixers.” Words to plan business expansion, mixing it up along the way!

Indian Tonic water: a go-to tonic for most consumers

The four variants

Indian Tonic, the classic original tonic flavour, which is a go-to tonic for most consumers;

Mint Tonic, a refreshing mint-flavoured tonic, which tastes as natural as a mint leaf when added to your gin -- mint is one of the most preferred herbs that people use to top their G&Ts to balance the strong botanicals in the gin;

Bitter Lemon Tonic, which has the same exotic lemon taste, sugar, and water, but also carbonation and quinine; and

0 Calorie Tonic, 0 Calorie and 0 sugar variant of the Indian tonic meets the needs of the health-conscious consumers.