O’Be Cocktails was founded in 2019 by Nitesh Prakash who had a simple idea of bringing bar-quality cocktails into people’s homes. The brand promised to provide ready-to-drink cocktails with the same consistency of drinks made by professional bartenders. Their each recipe was perfected through 100 iterations, making sure that the customers get the same premium taste every single time.
O’Be quickly made its place in Goa and Bengaluru, where people actually enjoyed this experience. The company’s vision was to change how Indian’s consumed cocktails; moving from the bar counter to their homes.
Funding, Growth, and a Wide Reach
O’Be Cocktails did not just rely on its product but also had a huge growth in its early years:
• Raised ₹3.5 crore in August from First Cheque, LetsVenture, Ola’s Bhavish Aggarwal, Traxcn’s Abhishek Goyal, and Sprout Investments.
• Also secured an undisclosed pre-series A round in November 2023 from Inflection Point Ventures.
• Available in 9 Indian States and Bhutan.
• Partnered with 22 private distributors and also obtained 2 government contracts.
• Products were placed in over 1,700 premium wine outlets.
The Harsh Reality of the Alcobev Industry
Although they experienced early success but still O’Be Cocktails faced a much tougher market than expected. The alcoholic beverage industry in India is strictly contolled and monitored, as each state has its own licensing and tax rules, which makes distribution complex and costly. In India, the ready-to-drink cocktail was still very small and most people still preferred cheaper and well-known alcohol like beer, whisky, or rum.
On top of that, competition was also increasing, as brands like Jimmy’s Cocktails and several other ready-to-drink makers were also trying to grab market space. The market was price sensitive, and people preferred cheaper products; on the other hand, O’Be tried to provide premium and unique products. This made it difficult for the company to grow sales to make enough profits.
Searching for a Lifeline
For over a year, O’Be Cocktails was looking for a buyer who could keep the brand alive. Nitesh Prakash and his team tried to explore every single opportunity, but no deal went through. In order to run an alcoholic beverage company, one needs a constant cash flow of money.
Thereby, in early 2025, Prakash announced its shutdown via LinkedIn, mentioning that it was the hardest decision for them to make. He also stated that the alcoholic beverage sector is more of a commoditized market than a consumer-driven one, which means that it did not align with his idea of creating a premium cocktail brand.
Lessons from the Fall
O’Be Cocktails’ journey offers valuable lessons for other entrepreneurs. First, having a great product is not enough; you also need to navigate the challenges in the industry, especially in heavily controlled areas like the alcohol market. Secondly, one must observe the consumer behaviour in that industry first, as people prefer cheaper options first. So selling a premium product can be difficult. Lastly, it is important to have backup plans, like partnership or other sale options, or other ways, so that the business can survive.
Even though O’Be Cocktails has shut down, its effort to bring a change in the cocktail drinking experience in India will always be remembered.
