Section 37
How Paper Boat found its market after a first product struggled
What do you do when your first product does not take off?
- case
- Success
- years
- 2011-2016
- $100 million
- Company valuation (as stated by co-founder) · 2016
- About 50% more cost-efficient
- Pouch cost vs Tetra Pak · 2023
- 01
The situation
Hector Beverages first launched an energy drink, Tzinga, in 2011 after about one and a half years of development. Co-founder Neeraj Kakkar told Outlook Business that its growth fell short of expectations and called it a lesson in branding and distribution.
- 02
The decision
While looking for aam panna for a guest, the founders found that traditional Indian drinks were hard to buy in packaged form. They launched Paper Boat with drinks such as jaljeera, after test-marketing in early 2013 and a national launch in August 2013. The drinks came in 250 ml pouches designed to feel like paper, with a nostalgic brand story and no preservatives, added colours or carbonation.
- 03
The outcome
Paper Boat grew to eight year-round flavours and eight seasonal ones. Kakkar told Outlook Business in July 2016 that Hector was valued at $100 million. According to the Scroll excerpt, its pouches were about 50 per cent more cost-efficient than Tetra Pak cartons.