How to build a craft beer company in India: Geist Brewing Co's playbook

In the vibrant landscape of India’s burgeoning craft beer scene, Geist Brewing Co stands out as a testament to passion, persistence, and pioneering spirit. Behind its success is Narayan Manepally, a co-founder whose journey from a promising engineering career in the United States to revolutionizing India’s beer industry is as intriguing as the brews he meticulously crafts. In a candid conversation, Manepally shares insights into his entrepreneurial odyssey, the role of technology, and the evolving consumer palate.

The engineer's unexpected calling: From Intel to India's craft beer scene

Born in Mysore and raised in Bengaluru, Manepally's early life followed a conventional academic path, leading him to an engineering degree from BMS and a master's from Virginia Tech. His career took off at Intel's Princeton Research Operation in New Jersey, where he delved into digital video interactive (DVI) technology and later pioneered real-time video conferencing systems. These innovations were even showcased by Intel's then-CEO, Andy Grove, in 1993. A move to the Intel Communications Group in Portland, Oregon, however, would unwittingly set him on a different, more flavourful course

It was during his time in Oregon, a hub for homebrewing, that he discovered his love for craft beer. One fateful afternoon, a visit to a store called 'Main Street Home Brew' led him to brew his first batch, a California Golden Ale, which tasted incredible and sparked the idea of bringing craft beer to India.

Crafting the Geist brand

Returning to India, Manepally faced a significant hurdle: the absence of laws for microbreweries. "Every place that I went to they said, 'Oh, micro brewery laws don't exist. It's illegal to do this. You cannot, we cannot allow you to do this'," he stated.

Undeterred, he explored getting his recipes brewed in Germany and Belgium and imported them. While financially unviable, "we were literally wrapping 50 notes across every bottle of beer that we were selling." This experience was a crash course in the complexities of the excise department, warehousing, and transportation.

The landscape began to shift when Arvind Raju of Beer Club secured the first microbrewery licence in Karnataka. Geist seized the opportunity, getting involved with two microbreweries, Brewski and Big Brewski, which quickly became sensationally successful.

"The first time in my life I felt like a rock star because this thing was wildly, wildly successful," Manepally shares, highlighting their impressive earnings of "$600,000 in a month" with "gross margins are 67%

COVID-19, however, brought the B2B business to a screeching halt. With "everything stopped" after March 14, 2020 , Manepally's objective became clear: "Save the company and don't fire any employees."

This led to ingenious innovations like the on-premise beer garden and securing government permission for 'growlers'–2-litre jugs allowing customers to take beer home. This initiative not only ensured survival but also became a powerful brand building tool.

Geist currently operates in Bengaluru, Telangana, Puducherry and beyond, supplying to 450 locations.

Tech-driven quality: Keeping the brew cold and consistent

Technology remains a core pillar of Geist's operations. Guided by the Arrhenius equation, which quantifies how heat accelerates reactions in liquids, Manepally is obsessed with maintaining a cold chain. "If you expose beer to heat, something bad is going to happen," he asserts. 

Geist’s operations reflect Nari’s engineering roots. From building a custom ERP to GPS + IoT-based geo-fencing for keg deliveries to developing 'keg sleeves' with water circulation to chill beer without industrial cold boxes, Geist has redefined the tech backbone of beer logistics in India.

The evolving Indian palate: A shift towards premiumisation

Bengaluru, he says, is India’s California, setting trends that ripple across the nation. Geist rides the wave of premiumisation: consumers drinking less, but better. Its smoked wheat beer even won silver at the European Beer Star, a first for an Indian brewing company.

“Craft is not just small batches. It’s using knowledge, skill and obsession with quality to make people feel good with every sip.”

The "thirst and hunger for knowledge" among India’s tech-savvy population, coupled with international travel experiences, has fuelled the demand for better beers. This has converged with a broader trend of 'premiumisation' where consumers are willing to spend more for quality. 

"People are spending money and saying: Listen, I don't need to drink a lot of beer, but if I want to drink, let me drink really good beer and I don't mind spending a little bit more money for it," Manepally notes.

Lessons from the brewing: Passion, persistence, profitability

For aspiring entrepreneurs, Manepally offers invaluable advice encapsulated in the three Ps of passion, persistence and profitability.

He underscores the importance of financial acumen: "If you don't pay attention to the bottom line, you're going to get screwed."

He also advocates for unwavering persistence, even in the face of immense pressure. "There are so many times in your life you wanted to say, you know, screw it, it's just too much. I just can't do this anymore," he admits, but stresses the importance of deciding to "stay on".

Drawing from his mentor's wisdom, he concludes, "Entrepreneurship is about being in business long enough till the lightning bolt strikes."

In India, he advises, expect a "10-year rule" for any business to truly build

Manepally's journey with Geist Brewing Co is a compelling narrative of transforming a personal passion into a thriving enterprise, navigating regulatory hurdles, embracing technological innovation, and keenly understanding the pulse of the evolving Indian market. His story serves as an inspiring blueprint for those daring to dream big in the challenging yet rewarding world of entrepreneurship.

Listen to the full podcast episode to gain more insights.

Timestamps:

00:00 – Introduction

03:27 – Tech at Intel → Garage brewing

08:09 – First brew = The big idea

10:08 – “Now they say: We love geist!”

12:42 – What makes a beer 'craft’?

15:00 – Brewing abroad when India said no

18:04 – The 600K month & scaling B2B

20:33 – COVID pivot: Sell to myself

23:47 – Cold chain & the science of fresh beer

34:03 – Advice for founders