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Sales of wine in India in 2008-09 was about 1,475,000 cases (1 case = 12 bottles x 750 ml per bottle)'- flat as against the same figure in 2007/08, till when volumes had been growing at CAGR of 31%: |
Growth of Wine in India |
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** Total Volume in '000 cases ** |
|
Year |
Imported |
Domestic Premium |
cheap |
Total |
Growth |
2003-04 |
74 |
155 |
270 |
499 |
|
2004-05 |
100 |
215 |
300 |
615 |
23% |
2005-06
|
137 |
299 |
353 |
789 |
28% |
2006-07 |
168 |
481 |
450 |
1,099 |
39% |
2007-08 |
224 |
650 |
600 |
1,474 |
34% |
2008/09 |
175 |
600 |
700 |
1,475 |
0% |
CAGR upto 07/08 |
32.0% |
43.0% |
22% |
31.2% |
|
Retail price |
>700 |
150-700 |
<150 |
Rs/Bottle |
550 |
Sparkling Wine |
30 |
90 |
5 |
125 |
08/09 |
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Sales of higher-priced wines were impacted in 08/09 due to a downturn in the hospitality industry following the global economic recession and down-trading by domestic consumers due to higher retail prices due to increased taxes on wines in the key markets of Mumbai, Bangalore, and Goa.
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Imported Wines |
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Sales of imported wines had surged after the sector was de-regulated in 2001 and today there are some 90-odd importers, based mainly in Delhi and Mumbai, with the largest ones being:
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Volume 08/09 |
Brindco Ltd |
42 |
Sonarys Co-op Brands |
19 |
Moet Hennessy India
|
20 |
Global Tax Free |
10 |
Hema Collections |
9 |
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Other leading players include Pernod Ricard India, Sula, the UB Group, Fine Wines & More, Aspri Spirits,Mohan Brothers and Diageo India. |
French wines lead the pack with sales of about 65 th cases, followed by Australia (35 th) and Italy (15 th). The single largest brand of imported wines in 08/09 was Kingfisher Bohemia (from South Africa) with sales of about 5,500 cases. |
Domestic Premium Wines |
Sales of domestic premium wines have also been witnessing sustained growth - the key players here are:
COMPANY |  |
WINERY LOCATION |
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WHEN STARTED |
|
08/09
(000 CS) |
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MKT SHARE
(%) |
Indage | |
Narayangaon |
|
1986 |
|
215 |
|
36% | |
Sula | |
Nasik |
|
1999 |
|
195 |
|
33% |
|
Grover | |
Bangalore |
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1999 |
|
70 |
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12% | |
Rest | |
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|
129 |
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20% |
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Total | |
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600 |
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100% |
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| Maharashtra state (whith Mumbai as the state capital) had announced a 'Grape Processing Industry Policy' in 2001 that made it easier and cheaper to set up new wineries, and today there are some 45 new units in that state - although few are distributing their wines outside their home state.
| Karnataka state (capital - Bangalore) had also come out with its own 'Karnataka Wine Policy 2007' that came into effect wef Oct-08; while to-date only 1 new winery has started production, another 12 units are slated to come up in 2010.
| The principal grape varieties under cultivation in India are:
White Grapes |
000 cs |
Chenin Blanc |
100 |
Sauvignon Blanc |
60 |
Clairette
|
20 |
Viognier |
20 |
Others |
10 |
|
200 |
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Red Grapes |
000 cs |
Shiraz |
170 |
Cabernet Sauvignon |
40 |
Zinfandel
|
80 |
others |
20 |
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|
310 |
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Indian sparkling wines principally use the Thomson Seedless grape, blended with small quanities of Chenin Blanc and Chardonnay/ Pinot Noir.
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As may be expected, principal markets for domestic wines are the metro cities of Delhi, Mumbai, Calcutta and Bangalore - although significant volumes are contributed by Goa and Pune; Chennai (Madras) only permits wine sales to the Horeca trade.
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Cheap Wines |
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These are wines produced largely using the Bangalore Blue or Baramati Purple grape (a Lambrusca-typeseeded table grape) mixed with sugar, alcohol, colours and flavours and sold at below Rs. 200/bottle - not really 'wine' in the traditional sense.
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The leader here is Golconda wine (originally from Shaw Wallace, now owned by the UB Group), though the
segment includes a significant quantity of Goan 'Port-style' wines.
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| Want to know more about Wine in India? Contact Alok Chandra at alok@gryphonbrands.com |
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