Good­ness! brews a healthy busi­ness in bev­er­ages

Ben­galuru start-up sells ready-to-drink dairy con­coc­tions for peo­ple on the go


The next time you walk into any su­per­mar­ket look­ing for a healthy dairy bev­er­age, you are likely to spot Good­ness! a new ready-to-drink, dairy brand that of­fers Oats and Yo­gurt smooth­ies, and Cof­fi­atos (cold brewed cof­fee).

Good­ness! is the brain­child of an In­dian start-up Good­ness!Bev­er­ages, run by a hus­band and wife team. Chai­tanya Chitta and Lak­shmi Dasaka gave up liv­ing in the US to chase their en­trepreneurial as­pi­ra­tions in In­dia. They chose to play in the food and bev­er­ages space, be­cause nearly 70-80 per cent of an In­dian fam­ily’s monthly pur­chase bill goes to­wards F&B.

“Did you know that one in three In­di­ans skip break­fast, the most im­por­tant meal of the day,” asks Chai­tanya. He adds that in Ben­galuru alone, two out of three mil­len­ni­als skip break­fast more than three times a week. They de­cided to pro­vide peo­ple with an ‘any­time break­fast’ op­tion with smooth­ies in a bot­tle. Packed with the good­ness of oats, the smooth­ies are gluten-free, rich in fi­bre and serve as the per­fect break­fast on-the-go, he said. Priced at ₹49 for 190 ml, the smooth­ies are avail­able in Vanilla, Choco­late and Straw­berry flavours and were an in­stant hit.

For oth­ers who need a quick caf­feine boost, the start-up has cre­ated Cof­fi­atos with 100 per cent Ara­bica beans sourced from Chik­ma­galur dis­trict in Kar­nataka, which are avail­able in clas­sic and hazel­nut flavours, priced at ₹49 for 190 ml. “Be­sides Star­bucks and a few spe­cial­ity cafés that of­fer cold brewed cof­fee, Good­ness! is the only bot­tled cold brewed cof­fee in the coun­try. Our sig­na­ture cold brew­ing tech­nique en­sures that our cof­fee is high on caf­feine and low on acid­ity, to Lak­shmi Dasaka, COO, Co–founder, Good­ness! Bev­er­ages, and Chai­tanya Chitta, CEO, Co-founder help recharge you on a tir­ing day,” he said.

Flavours ga­lore

The cou­ple also iden­ti­fied cus­tomer de­mand for healthy snack­ing op­tions and came up with yo­gurt smooth­ies in mango and ginger mint flavours, priced at ₹49 for 190 ml. All the bev­er­ages are free of preser­va­tives, ar­ti­fi­cial flavours and colours. Lak­shmi says: “we en­sure that sugar lev­els are kept to the min­i­mum with­out com­pro­mis­ing on taste. While the ginger mint yo­gurt smoothie is com­pletely sugar-free, most of our bev­er­ages con­tain at least 40 per cent less sugar than lead­ing aer­ated and fruit juice brands.”

The mar­ket op­por­tu­nity for pack­aged dairy bev­er­ages in In­dia is es­ti­mated at ₹2,500 crore and pro­jected to grow to ₹6,500 crore by 2022. The space is dom­i­nated by large In­dian cor­po­ra­tions such as Amul, Aavin, Nan­dini and Mother Dairy. Multi­na­tion­als have smelt the huge op­por­tu­nity. While Coca-Cola In­dia joined the fray with the launch of VIO flavoured milk in al­mond de­light and ke­sar treat vari­ants last year, Pep­sico is look­ing to en­ter into the space with dairy bev­er­ages that cater to the nu­tri­tion needs of break­fast.

Suc­cess mantra

How does a start-up ex­pect to pit it­self against do­mes­tic and multi­na­tional Go­liaths and yet hope to suc­ceed? “It is re­ally sim­ple,” said Chai­tanya. A start-up’s job is to meet cus­tomer de­mand with a prod­uct of­fer­ing and not cre­ate de­mand where none ex­ists.

“It was a les­son learnt when our first start-up Smar­ton Learn­ing didn’t do as well as we had ex­pected be­cause, we first cre­ated an on­line learn­ing plat­form for al­ter­na­tive skills and then tried hard to cre­ate de­mand for it.”

Good­ness!Bev­er­ages sells 50,000 units and earns ₹2.5 crore per month. Nearly 60 per cent of its sales is from in­sti­tu­tions and the rest from 1,000 re­tail stores in Ben­galuru, Hy­der­abad and Delhi.

The bev­er­ages are avail­able in gourmet and niche mod­ern trade out­lets and re­tailed out of five restau­rant chains – Cal­i­for­nia Bur­rito, Leon Grill, Faa­sos, Pizza Stop and Big­gies Burger.

Growth chart

“The sales we achieved over 15 months in Ben­galuru, took only three months to achieve in Delhi, as our go-to-mar­ket strat­egy had been honed in the Ben­galuru mar­ket. Sales are grow­ing 30 per cent mon­thon-month and we are aim­ing to hit ₹10 crore per month in an­nu­alised rev­enue in the next six months. This is pos­si­ble with our new mar­ket launches in Mum­bai, Pune and Chen­nai,” said Chai­tanya. The startup has tied up with dairy man­u­fac­tur­ing com­pa­nies that have pro­vided it a ded­i­cated pro­duc­tion line.

The start-up, for­merly known as Drop­kaffe and founded in Ben­galuru in 2015, be­gan by sell­ing hot and cold cof­fees, milk­shakes and smooth­ies which was a way to un­der­stand what cus­tomers ac­tu­ally craved for. “Cold cof­fee was the clear win­ner re­calls,” Lak­shmi.

Good­ness!Bev­er­ages has re­ceived ₹10 crore in seed fund­ing from a clutch of in­vestors.

“Our sig­na­ture cold brew­ing tech­nique en­sures that our cof­fee is high on caf­feine and low on acid­ity, to help recharge you on a tir­ing day.”


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