:. Food Industry News


Indians Say "Cheers" to Booming Local Wine Industry

Source: Reuters
21/08/2008

New Delhi, Aug 21 - They're a nation of beer and whisky drinkers, but wine is fast becoming the tipple of choice for India's growing ranks of young, affluent professionals who are quaffing down vintages and boosting the local industry.

Daily News Alerts

From being negligible almost a decade ago, wine consumption in India has grown about 30 percent a year over the last 10 years as the economy booms.

And while the figures are low by global standards -- just 5 millilitres (0.2 fluid ounces) per capita compared to 2.5 gallons per capita in the United States, experts expect more bottles will be up-ended as wealthy Indians slake their thirst for wine.

The wine market in India is dominated by three major local players, Sula Vineyards, Grover Vineyards and Chateau Indage, and sales have rocketed, especially in trendy city bars and clubs.

"They come in here every Wednesday to Saturday night and drink their wine," said Raj Khan Pathan, a bartender at Wink, one of Mumbai's popular nightspots, referring to his young patrons.

Rajeev Samant, CEO of Sula Wines, said drinkers in their 20s and 30s were a main factor driving the growth of the wine market.

"If you look in the lifestyle pages of any newspaper you'll see pictures of people drinking wine, and especially Indian wine, as it is much more widely available," he told Reuters.

"People are starting to drink not just to get drunk. And incomes are high enough that they want quality beverages."

WINE SNOB COURSE ANYONE?

The relatively new wine culture has spilled over into other businesses, with wine appreciation courses, vineyard tours and wine pairing classes becoming more popular.

Tulleho, a wine and beverage marketing company based in Delhi advertises on its website courses on "becoming a cocktail guru", guided tours of India's biggest vineyards, and even a class in "becoming a wine snob".

Tulleho's chief executive Vikram Achanta, who has been educating wine consumers since 2000, says his business has grown between 70 and 80 percent in the last three years alone.

As the local wine industry blooms, expensive imported vintages are also becoming popular, especially in posh restaurants. New Delhi's Imperial Hotel said it was selling 3,000 to 4,000 bottles per month, mostly of imported wine, and many of those go to Indians, rather than foreigners.

"Drinking wine is a big trend in India," says Stephane Soret, one of India's leading sommeliers. "And more importantly, being seen drinking imported wine."

But India's domestic wine industry still needs to overcome several hurdles that could nip the trend in the bud, experts say.

Despite high tariffs on imported wine, Indian wine makers face stiff competition from foreign firms eager to get into the rapidly growing market.

According to Soret, these local wine makers must find new ways to increase consumption and convince consumers of the value and quality of their product if they are to survive.

This would involve more professionals and more brands entering the market, but the frantic rush of new, uneducated players to meet demand is not helping.

"I see guys who one day are importing shoes -- they want to make a few bucks so the next day they switch to wine," Soret explained. "That's just not how it's to be done."

The majority of wine retailing is in the hands of the government, which in the past has led to poor storage. Some local producers are even making wine from table grapes, Soret said.

Because local producers can not meet demand, many companies are importing foreign-made wines, and then bottling and selling them under a "made in India" label. Quality is not always their top concern, experts say.

"The challenge is promoting wine and making your customer knowledgeable about the wine, the grape, the temperature -- everyone have to be trained, even the customer," said Palash Basu assistant manager at the Imperial's 1911 restaurant and bar.



GO   View more articles on this subject


More Alerts from 21/08/2008


Email This Article To A Colleague     Print A Copy Of This Page
 
 
 
 
FLEXNEWS - Business News for the Food Industry

About Us | Contact Us | Terms & Conditions | Privacy Policy
 
Daily News Alerts
Related Items
EU Wine and Spirit Producers Hail WTO Scrutiny of Discriminatory...
The Indian Wine Industry Uncorked
India Wins WTO Wine, Spirits Dispute vs US (DJ)
US Studying India Duty Announcement on Wine, Spirits
EU Welcomes India's Move on Wine, Spirits Duty
US Steps Up Challenge of Indian Wine, Spirit Duties
WTO to Investigate Indian Wine, Spirit Duties
India Temporarily Blocks EU Drink Trade Row at WTO
EU Escalates India Drinks Trade Dispute at WTO
European Drinks Firms Keen on India, Seek Tax Cuts

More in Food Industry News
Thorntons Says Xmas Sales 2.3 pct Lower
China Marine Food Group Commences Production at New...
Wessanen Starts Buyout Process of Remaining Shares...
UK Shoppers Shifted Record Spending to Online Delivery...
Constellation Brands Reports Q3 Fiscal 2009 Results
Danone and Wahaha Look to Swedish Arbitrators to Help...
Bakkavor Restructuring Proposals at 3 UK Plants could...
Full Motion Beverage Announces LOI with Mojito Brands...
Japan's Otsuka Pharmaceutical to Grow Nutraceutical...
Kenya's UnileverTea Delists After Minority Buyout

Top Headlines
China Marine Food Group Commences Production at New...
Wessanen Starts Buyout Process of Remaining Shares...
UK Shoppers Shifted Record Spending to Online Delivery...
Constellation Brands Reports Q3 Fiscal 2009 Results
Preparation of Microcapsules
Marks & Spencer to Close Some 'Simply Food' Stores
New Zealand Commodity Prices Tumble in December; Dairy...
Danone and Wahaha Look to Swedish Arbitrators to Help...
Method for Selectively Inhibiting Reuptake of Serotonin...
Bakkavor Restructuring Proposals at 3 UK Plants could...
Full Motion Beverage Announces LOI with Mojito Brands...
Japan's Otsuka Pharmaceutical to Grow Nutraceutical...
Kenya's UnileverTea Delists After Minority Buyout
Coffee May Lower Risk of Oral Cancer - Study
World Milk Prices Continue to Decline - NZ's Fonterra...
Vietnam Farmers Sue for Damages from Melamine Scare
Sodexo Keeps 2008/9 Goals as Q1 Sales Rise
Domino's Pizza UK Says FY Profits to Beat Forecasts
Pepsi Bottling Ventures Signs Letter of Intent to Acquire...
UK Seeks Clearer Food Labels After Irish Pork Scare
M&S Sales Worst for a Decade, to Cut 1,230 Jobs
U.S. December Retail Sales to Spur Profit Warnings
Branded Kenyan Coffee Expected on the Market in 2009
GLG Life Tech Corporation Begins Operations at Two...
Perdigao Rationalises Dairy Operations; Shuts 2 Plants
Xiwang Sugar Holdings Issues Profit Warning and Postpones...
ABInBev to Close London Brewery, 182 Jobs at Risk
Overview of Poland's Booming Food Processing Sector


 


FLEXNEWS 2008 - All rights reserved
ISSN 1950-6228