Proost, one of India’s fastest-growing beer brands, is revolutionizing the alcobev industry with its unique approach to brewing. Since its inception in 2017, Proost has been on a mission to offer premium, affordable beer to Indian consumers, addressing a gap in the market. With its commitment to quality, innovation, and accessibility, the brand has rapidly expanded its presence across six states and has ambitious plans for national and international growth. In this exclusive interview, Co-Founder and CEO, Mr. Tarun Bhargava of Proost shares insights into their journey, strategies, and the future of beer in India.
Proost began as a vision to bring premium, affordable beer to India. How has this mission shaped your journey from Proost to becoming one of the fastest-growing beer brands in the country?
When we started Proost in 2017, our mission was simple yet ambitious: to provide Indian consumers with premium-quality beer at an affordable price. Back then, the Indian beer market was dominated by a few big players who largely focused on strong beers without offering much variety or innovation. Consumers were actively looking for better alternatives that fit within their budgets, and that gap in the market became our opportunity.
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We launched Proost with a focus on strong beer—a segment that constitutes the majority of India’s beer consumption. We made it a priority to deliver consistent quality, a refreshing taste, and an affordable price point. Over the years, this philosophy has shaped every decision we’ve made, from product development to market expansion. Today, we’re proud to be recognized as one of India’s fastest-growing beer brands, with operations in six states and ambitious plans to expand into more.
From selling 4,000 cases in your first year to 70,000 monthly now, what pivotal moments or strategies drove this exponential growth?
Our journey from selling 4,000 cases in the first year to 70,000 monthly today has been marked by several pivotal moments. One of the most important strategies was focusing on retail. Instead of spreading ourselves thin by targeting premium outlets like hotels and clubs, we concentrated on building a strong presence in retail stores, where most of India’s beer consumption happens.
We also focused on operational efficiency and frugal spending. By ensuring that our beer is always cold, visible, and available at retail outlets, we’ve built a reputation for reliability. Additionally, we invested in scaling our production capacity to meet growing demand, which currently stands at 1.8 million cases annually and is projected to reach 3 million cases in the next year. These strategies, combined with a relentless commitment to quality, have been the driving force behind our exponential growth.
Proost’s tagline, "We Brew Passion," resonates deeply with consumers. How do you ensure this philosophy translates into every pint of beer?
Our tagline, "We Brew Passion," reflects our unwavering dedication to delivering exceptional quality in every pint of beer. To ensure this philosophy translates into reality, we’ve implemented strict quality controls across all our breweries. Even though we brew at three different locations—Punjab, Uttar Pradesh, and Telangana—we maintain consistency by sourcing raw materials from a central vendor in Rajasthan.
Unlike many brewers, we don’t cut corners during the fermentation or maturing process, even during peak demand seasons. For instance, if the brewing cycle requires 15 days, we stick to it, ensuring the beer has enough time to mature to perfection. This attention to detail and commitment to quality helps us deliver on our promise of brewing passion into every bottle of Proost beer.
With operations in six key states and plans to expand into three more, what challenges and opportunities do you foresee in scaling Proost's presence?
Scaling a beer brand in India comes with unique challenges, primarily because alcohol is a state-regulated industry. Entering a new state is akin to entering a new country—it involves navigating different excise policies, building relationships with local wholesalers, and understanding state-specific consumer preferences. Another significant challenge is securing shelf space in a market dominated by established players and local brands.
Despite these challenges, there are immense opportunities. Consumer preferences are shifting, with a growing demand for better-quality beers, especially in Tier 2 and Tier 3 cities. These regions represent untapped markets where we see significant growth potential. By focusing on these areas and staying true to our core values of affordability and quality, we’re confident in our ability to scale successfully.
India’s per capita beer consumption is below the global average. What is your strategy to capitalize on this untapped market potential and shift consumer behavior?
India’s low beer consumption is largely due to high taxation, which often places beer in the same tax bracket as spirits like whiskey. This makes beer relatively expensive for many consumers. Advocacy for more favorable tax policies is crucial to making beer more affordable and accessible.
Additionally, cultural attitudes toward beer are changing. Beer is no longer seen only as a party drink; it’s becoming a preferred choice for casual occasions. This shift is particularly noticeable among younger consumers, who are more open to trying new beers. We’re leveraging this change by offering a high-quality product at an affordable price, targeting both urban and rural markets. Our focus on Tier 2 and Tier 3 cities is a key part of this strategy, as these regions are poised for significant growth in beer consumption.
You aim to secure a 5% market share in the Indian beer industry by the decade’s end. What milestones have you set to achieve this ambitious goal?
Achieving a 5% market share requires a multi-faceted approach. Our immediate goal is to expand our presence across India, with operations in every major state within the next three years. This national footprint is essential for achieving scale.
We’re also focusing on penetrating deeper into Tier 2 and Tier 3 cities, where we believe the next wave of beer consumption will come from. Strengthening our distribution network, improving supply chain efficiency, and expanding production capacity are other critical milestones. On the international front, we’re exploring opportunities to introduce Proost to global markets, further boosting our brand visibility and growth.
Having raised ₹50 crore across funding rounds, how do you balance aggressive growth with maintaining financial sustainability?
Our approach to financial sustainability revolves around being frugal and focused. We carefully evaluate every investment, whether it’s entering a new market or launching a marketing campaign, to ensure it delivers a strong return on investment.
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Our frugality extends to day-to-day operations, where we prioritize efficiency and avoid unnecessary expenditures. This disciplined approach has allowed us to grow aggressively without compromising financial stability. By aligning our growth strategies with clear financial goals, we’ve managed to maintain a healthy balance between expansion and sustainability.
Proost has secured funding from marquee investors, including the Chimes Group and India Accelerator. How has their involvement influenced your strategic decisions and vision?
We’ve been fortunate to have supportive investors who trust our vision and give us the freedom to execute our strategies. They bring more than just capital—they provide valuable mentorship and open doors to new opportunities. For example, their industry connections have helped us secure partnerships and streamline our operations.
Unlike some investors who focus solely on short-term returns, our backers have a long-term perspective. Their patience and support have been instrumental in allowing us to make decisions that prioritize sustainable growth over quick wins.
Consumer preferences are rapidly shifting towards craft and premium beers. How does Proost differentiate itself in a market crowded with both established players and startups?
Proost stands out by bridging the gap between quality and affordability. While craft beers cater to a niche urban audience, Proost focuses on delivering a premium experience that is accessible to a broader demographic. Our strong beer appeals to consumers who prioritize value for money, while our commitment to quality ensures a superior drinking experience.
By targeting both urban and rural markets and focusing on retail visibility, we’ve positioned ourselves as a brand that resonates with diverse consumer preferences.
Navigating state-specific excise policies in India is a significant challenge. How has Proost successfully adapted its operations to thrive in such a regulated environment?
The Indian alcobev market is one of the most complex globally due to state-specific excise policies. Each state operates like an independent territory, requiring separate licenses, excise compliance, and supply chain setups. For Proost, succeeding in this environment has been about preparation and adaptability.
Before entering a new state, we conduct thorough market research, analyzing consumer behavior, potential volumes, and the profitability structure. We also establish strong relationships with local wholesalers and distributors to ensure a smooth supply chain. Our strategy involves prioritizing retail over premium outlets, which has helped us gain a foothold in competitive markets. By focusing on these basics and adhering strictly to compliance, we’ve been able to navigate the regulatory landscape successfully and expand sustainably.
Your entrepreneurial journey, from Faagio.com to Proost, is remarkable. What lessons from your previous ventures have been most valuable in building Proost?
My journey with Faagio.com, an auto platform connecting online consumers to offline stores, taught me invaluable lessons about consumer behavior and the importance of a strong retail presence. While that venture didn’t succeed, it provided deep insights into how consumers make purchasing decisions and how retail influences consumption patterns.
These lessons directly shaped Proost’s retail-first approach. Understanding the power of visibility and availability at retail outlets has been a cornerstone of our strategy. Additionally, the resilience and adaptability I developed during my previous ventures have been instrumental in building Proost into a thriving beer brand. Every challenge faced with Faagio reinforced the importance of persistence, which has been key to navigating the complexities of the beer industry.
Proost’s growth embodies resilience and innovation. Looking ahead, what legacy do you hope to leave in the Indian Alcobev industry, and how do you envision Proost’s role in transforming the consumer beer experience?
Proost’s legacy is rooted in making premium beer accessible to every Indian consumer while reshaping how beer is perceived in the country. We want Proost to be synonymous with affordability, quality, and authenticity. Looking ahead, our goal is to create a brand that not only satisfies consumers but also inspires them to embrace beer as a versatile beverage for all occasions.
We aim to lead the transformation of the Indian beer market by introducing innovative flavors, expanding into underserved regions, and prioritizing sustainability. By staying true to our philosophy of “brewing passion,” we envision Proost playing a pivotal role in elevating the beer-drinking experience in India.
Can you share your first-hand experience with Shark Tank?
Appearing on Shark Tank was an exhilarating experience that allowed us to present Proost to a broader audience. It wasn’t just about pitching our product; it was a chance to showcase our journey, values, and vision for the future.
The feedback from the sharks was incredibly insightful and validated our approach to focusing on retail and affordability. While the exposure helped us connect with potential investors, it also significantly boosted brand recognition among consumers. Shark Tank gave us a platform to reinforce Proost’s position as an ambitious and innovative brand in the Indian beer market.
