Wine INDIA goes International

'Market for Indian wines is booming and their sales are zooming', has by now become a cliché. But 2004 did see a sales growth of more than 30% in revenues. Some companies claim an increase of 100% month-on-month sales. With new markets and segments opening up there is a perennial shortage of some label or the other. And this when the imported wines are increasing there share at more than a label a day and the anticipated sale of these wines is growing at more than 60% over previous year.

In spite of the pressure on prices of Indian wines due to the lower-end imported wines the price realization in domestic market is much more than would be available against exports which at best is currently a niche market, primarily with restaurants serving Indian food or wine lovers looking for wines with novelty value only. It would be a miracle to get an FOB price of more than US$ 3-4 even for the niche market when several quaffable wines from other countries are available for under US$2. Majority of wines imported into India are under $2 with the popular French table wines costing well below a dollar.

In this scenario it is not unreasonable to expect Indian producers shy away from exports. I have always maintained a contrarian's view regarding exports. It is only through export that we can expose ourselves to critical customers who are in the international arena and are in a position to tell us where the wine quality stands. Chile, New Zealand, South Africa improved upon the quality of their wine during the last 25-30 years by improving upon technology and exporting to mature markets. Even Italy learnt the quality Mantra by realizing that better quality fetched better prices internationally and by aggressive exports.

It is extremely important therefore, to create Brand India so that through awareness thus created it makes the job of exports easier. IT industry in India is one such shining example. Automotive component exports and the tremendous improvement in quality during the last 20 years is a glaring example of exports-quality-more exports and higher profits is the Mantra that has brought huge dividends to the industry. One doesn't need to go far back to remember the days of Premier Cars available in 'black' and this evaporated fast with the advent of better quality cars, the industry which has come full circle with more exports from India and of course much better quality of parts.

One important aspect of creating Brand India in wines is taking part in wine shows abroad collectively as India Pavilion. We at Delhi Wine Club have been making continuous efforts to have Indian Producers join hands and represent India together. While it might have been a tall order, it is a matter of pride for me and the Club that we have been able to make a small beginning in this direction through our associate, Indian Wine Academy who have organized an Indian Pavilion at the 3 rd Wine for Asia 2005 being organized by Singex Exhibitors at the Singapore Expo during 10-12 November. This is presumably first time that Indian wine producers are taking part in a national pavilion.

Sure, by any standards it is a very small participation of 5 exhibitors which include Chateau Indage and Sula Vineyards; Sankalp Winery of Nashik had also contracted to participate but opted out at the last minute due to manpower constraints. In all honesty I must admit that the decision of these exhibitors had nothing to do with Brand India, at least directly. Both these biggies have identified the Singapore market as an excellent potential market where they are about to launch their wines. But an Indian Pavilion snuck between France and New Zealand must surely make them dream about bigger things and make many new wine producers to join in the future. It will certainly be a matter of pride for the delegation of importers, F & B personnel and members of wine clubs being taken by the Indian Wine Academy.

It is also time that the relative ministry and export promotion council to take cognizance of the event and encourage smaller wineries to take part in such Shows in future. Grover Vineyards is not taking part in the Show as they do not have immediate plans to venture in this segment but surely could be motivated to partake in the show if it were under a national participation. Many smaller wineries looking for marketing ideas would also be the direct beneficiaries. Grape growers making wine would be able to take part in the shows too. One looks at the participation by much smaller countries like Uruguay , Israel and Lebanon in these international wine shows very wistfully. Most are subsidized heavily by the government agencies promoting exports.

One can only wish these exhibitors success at the Show so they can take part in future Shows and encourage more participation by the younger wine ries.

 

 

 

 
 
 
 

 
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