How Simba Beer's ZigZag plans to break through in the vodka game

After tasting success in the craft beer market, the home-grown brewer behind Simba Beer has ventured into the vodka segment with ZigZag vodka. Backed by its robust supply and distribution network, ZigZag is betting on bold flavours, strategic regional marketing, and a unique brand identity to take on industry giants.

Simba launched ZigZag vodka two weeks ago in four variants—original, lime, orange, and green apple—offered in three sizes (750 ml, 375 ml, and 180 ml). With plans to first focus on metropolitan areas, ZigZag vodka has been introduced in Goa and Delhi, and will later expand to Bengaluru and Assam. 

According to the brand, the foray into the vodka category was driven by consumer insights from research by global drinks data and insight providers like IWSR, which highlighted a stagnation in the segment, with little innovation to appeal to the younger generation.

According to Statista, the sales revenue from vodka in India is expected to be around $37 million in 2024, with out-of-home (clubs, restaurants and bars) sales contributing over $1 million. India's vodka market is projected to expand by a tad over 2%, resulting in a market volume worth $40.5 million in 2029.

Magic Moments Vodka leads the Indian vodka market, holding an estimated market share of around 50%. After Magic Moments, Absolut commands a notable market share of about 15%, whereas Smirnoff represents roughly 10%. White Fox Vodka, a smaller contender, has captured approximately 5% of the market. Various other brands share the remaining 20% of the market.

Ishwaraj Bhatia, co-founder of Simba Beer, told afaqs that the brand is leveraging the supply and distribution network it has built over the past nine years with Simba. "We will use that foundation to support our new product."

Typically, Simba Beer allocates 4-5% of its revenue towards marketing. Bhatia does not reveal the marketing budget for ZigZag vodka; however, he indicates that the primary focus for the initial two years will be on branding and establishing the product in the market. 

To promote the new range, the brand did Instagram campaigns with social media influencers such as Orry (Orhan Awatramani), Samay Raina, and Sushant Divgikr.

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The brand will initially concentrate on regional efforts, rather than a pan-India approach, as it is currently available in only a few states.

Talking about positioning, Bhatia says that ZigZag has a different identity from Simba.  

“The brand will have its own identity, distinct from Simba. Although we could have easily launched a vodka under the Simba name and capitalised on its recognition, but doing so could have alienated certain audiences who may not connect with Simba. As a brand, ZigZag will stand on its own and be run very differently in the market," he highlights. 

The product's pricing will vary based on state policy.

How ZigZag will stand out?

The vodka market has long been led by established players. How do the brands plan to position ZigZag to stand out in this competitive landscape, where consumers are often loyal to specific brands?

Bhatia says that flavours will play a crucial role in the vodka market, adding that flavoured vodka dominates 60% of the market now. The brand plans to launch two variants: one of them is the bumble gum flavour. 

“These products will help us stand out from traditional brands. We plan to introduce new flavours every year. Lime flavour enjoys popularity in the Northeast, whereas orange-flavored vodka is favoured in the central region. We want to cater to these regional preferences with innovative flavours in the upcoming months," he adds. 

Vodka is often perceived as a "ladies' drink," a stereotype influenced by its use as a mixer and the association of stronger spirits like whiskey and rum with masculinity. 

However, Bhatia points out, “While women are increasingly opting for premium vodka, particularly in metro cities where they can afford higher-end options, the consumption of more affordable vodka remains largely dominated by men."

Govt order; how ZigZag will navigate? 

The Indian government's recent draft rules on surrogate advertising for alcohol brands signal a major shift in the marketing landscape. These draft rules prohibit any indirect promotion of alcohol through surrogate products such as water, CDs, or glassware. 

Additionally, alcohol beverage brands' sponsorships of cultural, music, and sports events, as well as youth festivals, are now under scrutiny. The consumer rights watchdog is closely monitoring how these brands utilise social media to engage consumers through lifestyle content, events, and promotions.

With ZigZag's recent market entry and the scrutiny surrounding alcohol brand marketing, how will it address these challenges to successfully promote its new product?

Bhatia says that the brand is gradually adjusting to the new notifications and regulations concerning alcohol promotions. “We're learning to navigate these changes, and although there are still many grey areas, we respect the new guidelines. Going forward, we will focus on event-based promotions, minimising our dependence on social media for direct outreach. It will be difficult for emerging brands, but we will adapt as needed."

He adds that the one positive aspect is that it is a central government policy, which guarantees consistency across states, in contrast to varying policies for each state.