GLOBAL LOCALS

This week in my Global Local column, I am excited to speak with the founders of Bablr. Mahesh Santiapillai, Dmithri and Dinesh are redefining the classic Sri Lankan spirit, Arrack, with their innovative approach. Bablr, a product born from their deep appreciation of cultural heritage and a desire to bring something unique to the global market, stands out in the crowded spirits industry. Arrack, traditionally derived from coconut or palm sap, has been celebrated in Sri Lanka but remains largely unexplored internationally. The founders are on a mission to introduce this premium spirit to a broader audience, overcoming the challenge of educating Western consumers about its rich history and distinctive flavour. Join me as I delve into their journey, the challenges they’ve faced, and their vision for Bablr’s future in the global market.

Who are the Founders of Bablr? Share with us in summary your journey from Classroom to Boardroom.

My co-founders, Dimithri, Dinesh, and I (Mahesh), established Bablr after a journey that began in 2004 when we first met at Colombo International School (CIS) in Sri Lanka. Over the past 20 years, we've formed a deep bond, both personally and professionally. After our time at CIS, we each pursued higher education in the UK and eventually found ourselves reunited in London. Although our career paths diverged, Dimithri ventured into healthcare, Dinesh into pharmaceuticals, and I pursued a career in banking and finance; we were all driven by a shared entrepreneurial spirit. Despite our diverse professional backgrounds, we were united by a common goal: to create something of our own that would allow us to share a piece of Sri Lanka with the world. This ambition initially led us to explore the idea of launching a Sri Lankan street food chain in London. We were thrilled by the prospect and even secured a spot at Mercato Metropolitano, a popular food market in the city. However, just as we were about to launch, the COVID-19 pandemic struck, forcing us to rethink our plans. This unexpected turn of events led us to pivot from food to drinks. We observed the growing demand for craft spirits and saw an opportunity to introduce something truly unique to the market. The idea of building an Arrack brand struck a chord with us, especially given the saturation of traditional spirits like Whiskey, Gin, Rum, and Vodka. Arrack, with its rich heritage and distinct flavour profile, offered a refreshing alternative. Thus, our journey from the classroom to the boardroom culminated in the creation of Bablr, a brand that beautifully marries our love for Sri Lanka with our passion for entrepreneurship.

What inspired you to create Bablr, and why did you choose Sri Lankan Arrack as the base for your product?

The inspiration behind Bablr is rooted in our personal experiences with Sri Lankan Arrack, a spirit we frequently enjoyed during our university days due to its affordability. This early connection to Arrack set the stage for our entrepreneurial venture. The pivotal moment came in 2021 during a visit to Bar Termini in Soho, where a conversation with a bartender revealed Arrack’s historical significance as a key ingredient in the first-ever cocktail, ‘Paanch.’ This discovery, named after the Sanskrit word for ‘five,’ highlights its historical blend of Arrack, sugar, lemon juice, water, and spices. Our research into Arrack’s history unveiled its once-global popularity in the 1600s and 1700s, where it was esteemed over other spirits like rum and whiskey. However, UK taxation policies in the mid-1700s, which favoured locally produced spirits, contributed to Arrack's decline. Seeing an opportunity to revive this traditional spirit, we aimed to reintroduce Arrack as a premium product to a Western audience. We drew inspiration from traditional brewing methods, incorporating spices such as cloves, cardamom, and cinnamon to create Bablr. Our goal is to respect Arrack’s heritage while offering a modern twist that appeals to contemporary tastes.

Can you tell us about the unique qualities of Sri Lankan Arrack and how it differs from other types of alcohol?

Sri Lankan Arrack, derived from the Arabic word ‘araq’ meaning ‘sweat juice,’ stands out from other spirits due to its unique production process using the sap of coconut or palm trees. Unlike broader Arrack varieties made from ingredients like rice or molasses, the finest Sri Lankan Arrack is crafted exclusively from pure sap, collected by skilled toddy tappers who climb tall trees to harvest it. This labour-intensive process is deeply rooted in regional culture. Bablr aims to spotlight this heritage, bringing the rich history and unique qualities of Sri Lankan Arrack to a Western audience.

Why did you decide to distill and manufacture Bablr in Germany instead of Sri Lanka?

Our first batch of Bablr was distilled in Cambodia and bottled in Germany after extensive R&D, testing over 50 flavour infusions and ABV combinations. As a bootstrapped start-up, we produced just 2,000 bottles to test product-market fit. Although we approached Sri Lankan distilleries, most couldn’t accommodate small-batch production or the novel concept of spiced Arrack. Given Bablr's growing success, we're considering producing the next batch in Sri Lanka to support local businesses. We chose Germany for bottling due to its sustainability benefits and high standards in health, safety, and packaging, ensuring top-quality products.

How do you ensure the authenticity and quality of Sri Lankan Arrack in your product when distilling abroad?

Ensuring the authenticity and quality of Sri Lankan Arrack when distilling abroad involves rigorous measures. While local Arrack quality varies widely, with cheaper versions like Gal Arrack and Toddy sometimes perceived as lower quality, our goal is to elevate Arrack’s reputation to its former glory. For our first batch, we used a state-of-the-art facility in Cambodia, adhering to stringent quality control protocols. This includes annual on-site inspections to maintain high hygiene standards and ensure that our product reflects the true essence and premium quality of traditional Sri Lankan Arrack.

How do you source your ingredients, and are there any special partnerships or collaborations involved?

We draw inspiration from the 1600s and 1700s, when Arrack was traditionally infused with local spices like cloves and cinnamon. Our goal was to create a modern spiced Arrack that reflects this historical approach but with a lower alcohol content to suit health-conscious consumers. This also enhances versatility, allowing Bablr to function both as a liquor and a spirit. Our ingredient list is straightforward, 30% ABV Arrack infused with cardamom, though we maintain strict quality control with our distillers. We’re open to collaborations and have partnered with top mixologists and premium brands like Fentimans, who have showcased Bablr’s versatility in exciting new ways.

What is the significance of the name ‘Bablr,’ and how does it reflect your brand’s identity?

The name ‘Bablr’ is inspired by the Jungle Babbler, a sociable bird native to India and Sri Lanka that feeds on coconut flower sap. This name embodies the essence of our brand, our product is meant to be enjoyed in lively, social settings with friends, much like the playful and gregarious Jungle Babbler. Our brand embraces a fun and vibrant spirit, reflecting the bird's lively nature and our own approach to life. The bottle’s colours mirror the vibrant hues of both the bird and the rich, colourful landscapes of Sri Lanka and Southeast Asia, reinforcing our connection to the region’s heritage and vibrancy.

Who is your target audience, and how do you plan to reach them in the UK market?

Our target audience for Bablr is young urban professionals who seek something distinct from the usual gin, vodka, rum, or whiskey-based drinks. We’ve positioned Bablr as an aspirational brand, balancing accessibility with high-quality ingredients and a refined spirit, making it affordable yet premium.

To reach this audience in the UK market, we employ two primary distribution channels: direct-to-consumer through our website (and soon on Amazon), and placement in bars and restaurants in key regional capitals like London and Edinburgh. We focus on trendy cocktail bars with skilled mixologists and Southeast Asian and Sri Lankan restaurants to showcase Bablr’s versatility and unique appeal.

What marketing strategies are you using to introduce Bablr to the UK market?

As a start-up with limited resources, we focus on optimizing our marketing strategy to introduce Bablr effectively to the UK market. Initially, we invested time in understanding and defining our ideal customer profile, which enabled us to craft messaging tailored to our target audience. Our primary strategy involves leveraging social media outreach by partnering with like-minded brands to enhance our reach authentically. We also maintain a strong feedback loop, continuously refining our messaging and approach based on real-world responses. This approach ensures that our marketing efforts are both efficient and responsive to the needs and preferences of our audience.

How do you position Bablr in comparison to other premium spirits available in the UK?

Bablr distinguishes itself in the UK market by offering a unique and historically rich spirit that remains relatively unexplored compared to other premium options. Arrack’s deep cultural roots and heritage make Bablr a novel choice in a market saturated with traditional premium spirits. Additionally, many established competitors in the premium spirits sector underutilize social media, presenting Bablr with a valuable opportunity to connect with a broader, modern audience. By leveraging social media effectively, Bablr aims to build a strong, contemporary brand presence and engage with consumers in a way that sets it apart from more conventional premium spirits.

Can you share some of the feedback you've received from early testers or customers of Bablr?

The feedback on Bablr has been overwhelmingly positive, with many appreciating its versatility and robust flavour profile. Some bars serve Bablr neat or on ice, while others use it as a core ingredient in cocktails or as a secondary flavouring, showcasing its adaptability. The Scottish Dram Society, a leading authority on whiskey and rum, praised Bablr’s profile as an intriguing mix of earthy and sweet notes, with hints of spiced and perfumed tropical fruit. Bartenders and mixologists frequently highlight the drink's smoothness and the complementary role of cardamom, noting how it enhances the overall sweetness and flavour complexity.

What are your long-term goals for Bablr in terms of market presence and product expansion?

Our long-term goals for Bablr include establishing a strong market presence and expanding our product range. We aim to position Bablr as a compelling alternative to mainstream spirits like vodka and gin, especially as consumers seek more distinctive options. By effectively marketing and building awareness around Southeast Asian drinks like Arrack, we believe Bablr can stand out in a crowded market. Additionally, we plan to diversify our product line with various flavour infusions, canned drinks, and non-alcoholic or low-alcohol options, like other spirits, to cater to a broader audience and meet evolving consumer preferences.

Will you retail the product in Sri Lanka?

Yes, we plan to retail Bablr in Sri Lanka. Our goal is to serve both Eastern and Western markets. For our second batch, we will produce Bablr in Sri Lanka, aiming to introduce the product to a local audience while continuing to cater to our core UK market.

Are there any plans to introduce additional flavours or variations of Bablr in the future?

Yes, we are excited about introducing additional flavours and variations of Bablr in the future. During our R&D phase, we were impressed by the unique ingredients available in Sri Lanka, which offer opportunities for creating distinctive flavour profiles. However, our immediate focus is on educating the Western audience about Arrack and establishing it as their preferred choice. Once we achieve this, we plan to explore new flavour combinations and variations, including pre-mixed cocktails, which are gaining popularity in the UK. Our strategy is to build a strong foundation before expanding our product offerings.

How do you plan to educate consumers in UK about Sri Lankan Arrack and its cultural significance?

Educating UK consumers about Sri Lankan Arrack and its cultural significance is our biggest challenge. While those who try Bablr love it, increasing awareness and encouraging its adoption at bars and restaurants requires strategic effort. We believe Arrack has the potential to become a global phenomenon, akin to other regional success stories like Champagne or Parma Ham. To address this, we use several methods: hosting tastings with bars, attending trade shows, and sponsoring cocktail competitions. Our goal is to engage early adopters who can act as brand ambassadors, creating a viral buzz and spreading awareness about the unique qualities and heritage of Arrack.

What role does storytelling play in your brand, and how do you incorporate it into your marketing and product design?

Storytelling is central to Bablr’s brand, especially in reshaping the perception of Arrack as a premium spirit both locally and internationally. We crafted our branding with storytelling at its core, ensuring it permeates our marketing and product design. This approach helps us connect deeply with our audience, fostering a sense of community and shared identity. Our brand narrative centres on friendship, enjoying moments with loved ones, and not taking life too seriously, positioning Bablr as an aspirational yet accessible brand. In product design, we embrace bold, vibrant elements to reflect fun, camaraderie, and the joy of shared experiences.

What are some of the key milestones and achievements for Bablr since its inception?

• Conceptualization (2021/2022): Developed the product concept, conducted market research on Arrack’s origins and history, and established the brand’s tone and niche.
• Development (2022): Met with suppliers and distilleries, conducted numerous infusions and ABV iterations to align with traditional Arrack practices.
• Regulatory Approval (2023): Obtained approval to sell and distribute in the UK and Europe, navigating stringent quality control standards.
• Product Launch (January 2024): Launched Bablr and secured our first recurring revenue bar client by March 2024, which significantly increased their order rate.
• Expansion (Summer 2024): Scaled rapidly to over 20 UK establishments and began exploring partnerships with Sri Lankan breweries for local production.

What advice would you give to other entrepreneurs looking to launch a unique and

culturally significant product in a new market?

For entrepreneurs launching a unique and culturally significant product in a new market, focus on execution rather than just the idea. In my venture capital career, I’ve seen mediocre ideas achieve success due to the founder’s grit and passion. Persistence is key; be prepared to face setbacks and work with incomplete information. Authenticity and a genuine passion for your product are crucial, as pursuing business purely for monetary gain is often less rewarding than other wealth-building paths. As Paulo Coelho famously said, “When you really want something, all the universe conspires in helping you achieve it,” highlighting the importance of passion and resilience.