Oi Brewing Company, a Pune-based draught beer maker, is expanding its business into the cafe space. The company plans to open its first facility in the upscale Kalyani Nagar area of Pune by October.
Although the domestic draught beer market is still in its early stages, it is becoming more concentrated in major cities such as Bengaluru, Delhi-NCR, Pune, and Mumbai. Currently, there are over 50 players in the Bengaluru market alone, most of whom are small-time operators.
Despite its small size, the draught beer market is expected to grow annually by 8.2% between 2023 and 2027, according to industry publication Statista. By 2027, the market is projected to reach 5.81 billion litres, up from its current 1% share of the estimated USD 15 billion domestic beer market.
Oi Brewing Company, which sells its products under the Oi label, is hoping to take advantage of this growth by expanding its business into the cafe space. The company’s first cafe will offer customers a range of coffee, tea, and other beverages, as well as its signature draught beer.
“We’re really excited about this new venture,” said Oi Brewing Company founder and CEO Rahul Singh. “We believe there’s a real opportunity to create a unique, high-quality cafe experience that also showcases our fantastic beer.”
Singh added that the company plans to open additional cafes in other major cities in the near future. “We’re looking at cities like Mumbai, Delhi, and Bengaluru, where there’s a strong demand for premium coffee and beer,” he said.
The move into the cafe space is part of Oi Brewing Company’s broader strategy to diversify its business and appeal to a wider range of customers. In addition to its draught beer business, the company also operates a chain of brewpubs and a distribution network that serves more than 500 retail outlets across the country.
“We’re always looking for new ways to grow our business and reach more customers,” Singh said. “Expanding into the cafe space is just one example of that.”
Despite the challenges posed by the COVID-19 pandemic, Oi Brewing Company has continued to grow its business in recent years. Last year, the company launched a range of new products, including a non-alcoholic beer and a range of canned beers that are now available in retail stores across the country.
Singh said that the company is confident that its expansion into the cafe space will be a success, despite the current economic climate. “We believe that there’s a real appetite for high-quality, locally produced coffee and beer,” he said. “And we’re excited to be able to offer that to customers in a unique and innovative way.”