Beverage startup scales offline distribution, reports 20 to 25 per cent monthly growth and flags GST changes and logistics as key hurdles
Beverage startup Swizzle is scaling its offline distribution network and reporting strong near-term growth as it looks to carve out space in India’s fast-growing non-alcoholic carbonated beverage market through in-house flavour extraction from fruits and herbs, while targeting 100 per cent year-on-year growth.
“We extract our own flavours instead of using artificial or nature-identical flavouring,” said Vrinda Singhal, Co- founder, Swizzle, adding that the company spent nearly two years developing its formulations internally after being told such processes were difficult to achieve commercially. The company claims this approach gives it a distinct taste profile compared to conventional carbonated beverages, a differentiator that carries strategic weight in a market that is both large and rapidly evolving.
Hyderabad-based Swizzle has reported 20 to 25 per cent month-on-month growth in recent months and expects around 100 per cent year-on-year expansion. It is also projecting a 40 per cent increase in sales during the current summer season compared with last year. Singhal said demand is being supported by high repeat consumption, particularly in B2B channels, where the company sees around 80 per cent repeat orders on a monthly basis, subject to seasonal variation.
“Repeat is what validates the product for us,” she said.
The growth comes amid a broader shift in consumption patterns, with millennials and Gen Z increasingly opting for beverages perceived as healthier, lower in sugar and more ingredient-conscious. India’s non-alcoholic beverages market was valued at Rs 1.37 trillion in 2023 and is projected to reach Rs 2.10 trillion by 2029, growing at around 7 per cent CAGR, driven by urbanisation, rising health awareness and wellness-focused consumption trends, according to research and market reports.
Building Distribution From The Ground Up
The company is focusing on building an offline distribution network, which it expects will contribute around 80 per cent of total sales, with the remainder coming from online platforms such as marketplaces and its own website.
Singhal said that their company is currently present in over 250 retail outlets across Hyderabad and is now expanding into Bengaluru, with Chennai and Mumbai on the roadmap for later in the year. Vending machine networks across Delhi, Mumbai, Pune and Kolkata are being used to build visibility and drive trial.
Its cans are priced at Rs 80, with smaller Pet bottles at Rs 30. “You cannot build a daily consumption product at very high price points in India,” Singhal said.
Where Growth Gets Complicated
Scaling a beverages brand with natural ingredients and a single manufacturing base in Bengaluru brings a specific set of risks. Distributing to markets beyond Karnataka raises per-unit logistics costs significantly, prompting the company to evaluate third-party bottling and additional manufacturing hubs as volumes grow.
Natural sourcing introduces ingredient variability tied to seasonal availability, a problem synthetic flavouring eliminates by design.”Since we source from local markets, quality can vary with the seasons. Ensuring the taste remains consistent is critical,” Singhal said.
The company uses stabilisers to maintain shelf life, but maintains that it does not add artificial flavouring.
Following the 56th GST Council meeting held in September 2025, all aerated beverages containing sugar or flavouring now fall under a flat 40 per cent GST rate, consolidating the earlier structure of 28 per cent GST plus a 12 per cent compensation cess. The Council also cut the rate on non-carbonated fruit pulp or fruit juice-based drinks to 5 per cent, a differential that creates an indirect policy tilt away from carbonated formats that startups like Swizzle and its peers in the flavoured drinks category must absorb or pass on to consumers.
Singhal also pointed to the high GST rate on flavoured carbonated beverages as a structural headwind for emerging brands, and the concern is well-founded given recent regulatory shifts.
