"Entrepreneurs should be passionate but not overly emotional about their venture"

Salud is a global urban lifestyle brand that is redefining the drinking experience. With a strong emphasis on quality, affordability and sustainability, Salud offers innovative products in the spirit-based Ready-to-Drink (RTD) category. Seamlessly blending tradition and modernity, Salud delivers a fashionable lifestyle that resonates with consumers worldwide. From its internationally award-winning Cusp and Bitters to its refreshing RTD offerings, Salud’s diverse products cater to the evolving preferences of consumers.

Ajay Shetty, founder and CEO of Salud Beverages, had started out as a banker. However, he decided to leave his banking career and pursue his passion for entrepreneurship. The motivation behind this shift came from his experience of moving to India and witnessing the changing Alco-Bev landscape. He recognised the potential in the market and felt inspired to make a meaningful impact.

Before venturing into entrepreneurship, Shetty had already embarked on one previous entrepreneurial venture. In 2011, he made a significant leap from the banking industry to the world of Alco-Bev industry. This experience allowed him to gain valuable insights into the entrepreneurial mindset and the intricacies of running a business.

And so, he did the whole wine business, sold it and saw huge gaps in the R&D space and that’s what Salud wants to explore and grow the business – not just India, but globally.

In conversation with Adgully, Ajay Shetty, CEO, Salud Beverages, speaks about his entrepreneurial journey, the core business proposition of Salud Beverages, latest trends in the alcobev industry, challenges as well as learnings, and more.

What need gap did you want to fulfil with your start-up? What is the core business proposition?

Our idea was driven by the desire to fulfill a specific need gap in the beverage market. We identified a growing demand for natural, high-quality drinks that focused on lower sugar content and offered a low-alcohol option. Before our introduction into the market, there was a lack of options that truly met these criteria. We saw this as an opportunity to innovate and provide a unique offering that addressed these needs.

Our core business proposition was centered around crafting beverages that were natural, of superior quality, and had reduced sugar content. By prioritising these elements, we aimed to cater to health-conscious individuals who sought refreshing alternatives without compromising on taste. We wanted to create drinks that could be enjoyed by all, and we focused on ensuring convenience in terms of portability. Being the first mover in this space, we are proud of our initial creation, and we continue to build upon our success across different markets.

How did you identify your TG? Did you carry out any feasibility study prior to starting your business?

Our understanding of the market and our target audience was a combination of both research and observation. We recognised that our RTDs were primarily aimed at individuals who were interested in learning, experimenting, and exploring new drink options. This led us to build a cultural community centered around our brand, attracting people who enjoyed music, embraced specific styles and clothing, and desired convenience in their drinking experiences.

Rather than solely focusing on getting drunk, our beverages were crafted to provide a good time and be enjoyed in various settings with friends. We noticed a growing trend of people hosting house parties and seeking enjoyable experiences both at home and when they were out. Our drinks proved to be versatile, whether enjoyed on their own, used as mixers in cocktails, or incorporated into other mixed drinks.

This unique ability to cater to different preferences allowed us to meet the evolving demands of our target audience. By recognising the changing landscape of socialising and understanding the desires of our consumers, we positioned ourselves as a brand that provided not only a great drink but also a sense of community and style.

What were the challenges that you faced in your start-up journey and how did you overcome them?

One of the key challenges we faced in our start-up journey was establishing a presence in a market that had limited options for natural, low-sugar, and low-alcohol beverages. We had to create awareness and gain acceptance among consumers who were accustomed to traditional offerings. To tackle this, we focused on intensive marketing and branding efforts, leveraging social media platforms and engaging with influencers to educate our target audience about the benefits of our beverages.

Another significant challenge was sourcing high-quality ingredients consistently and at scale. We formed strategic partnerships with trusted suppliers and implemented stringent quality control measures throughout our supply chain to ensure the integrity of our products. Additionally, financial constraints were a hurdle as a start-up, which we managed by carefully optimising our expenses, seeking strategic investments, and exploring collaborations and partnerships to drive growth. Throughout our journey, perseverance, adaptability, and a willingness to learn from failures were vital in overcoming these challenges. By staying dedicated to our vision, continuously improving our offerings based on customer feedback, and making strategic decisions, we successfully navigated obstacles and positioned our start-up for long-term success.

What were the clearances that you required for your venture from various authorities?

For our venture, we needed clearances from authorities to comply with regulations and ensure operational standards. This included obtaining licenses and permissions from the excise department for the production, storage, and distribution of alcoholic beverages. We also had to meet food safety regulations by obtaining clearances and certifications for food handling, hygiene, and manufacturing practices. Collaboration with testing centers was essential for product analysis and quality assurance. By working closely with government offices and meeting all necessary requirements, we established our venture while maintaining transparency and adhering to regulatory standards.

Funds/ finance is the prime issue of almost all start-ups. What can the industry and the Government do to address this issue and ease the capital requirements of start-ups?

Investment in the alcobev and urban lifestyle space is nascent, but the government can help by simplifying ease of business. Implementing better control and distribution systems, such as state-managed alcohol sales, can be beneficial. To address funding challenges in the alcobev and urban lifestyle space, industry and government must collaborate. Established companies and investors can allocate funds and provide mentorship to promising start-ups. Industry associations can organise events connecting start-ups with investors. The government should implement policies like tax incentives and streamlined funding processes. Funding programs and seed funds dedicated to the sector can offer financial assistance. Creating a conducive business environment by reducing bureaucracy and providing infrastructure support will attract more investors. A joint effort will ease capital requirements and foster growth in innovative ventures.

How is digital helping you further your business?

Digital platforms play a vital role in our business. Since traditional advertising is restricted, digital channels provide the primary means to reach our target audience across markets. We focus on engaging audiences who are of legal drinking age (LDN), which varies between 21 and 25 years in certain states. Utilising digital platforms allows us to have a branded presence and effectively communicate with our target audience, providing an essential platform to promote our products.

What have been your key learnings so far? How do you see the start-up ecosystem progressing in 2023?

Launching new products is a time-consuming process that requires careful planning and execution. Consumer opinion holds significant importance, and gathering feedback is crucial for product improvement and customer satisfaction. Being adaptable and responsive to market preferences is key, as different regions and cultures have varying flavour preferences and styles. Thus, offering multiple brands tailored to specific markets becomes essential. Building a community around the brand and nurturing brand advocates are vital for long-term success. These are some key learnings that have shaped our approach.

What would be your message for the budding entrepreneurs?

My message for budding entrepreneurs is to stay focused on your product or idea while maintaining a balanced mindset. It’s important to have passion and belief in what you are working on, but also be prepared for the possibility that things may not always go as planned. Don’t lose hope if you face setbacks or challenges along the way.

Persistence and hard work are key ingredients for success, but it is equally crucial to understand your target market and adapt accordingly. Learn from your experiences and use them to iterate and improve your offerings. Be open to feedback and willing to make necessary changes to meet the needs of your customers.

While being passionate about your venture, it is essential to avoid becoming overly emotional. Emotions can cloud judgment and hinder your ability to objectively evaluate your product and make necessary adjustments. Maintain a level-headed approach and be willing to pivot if needed.