Indian wines : growtth of Indian wines

“Wine - a bottled poetry ‘’

                                                -Robert Louis Stevenson

   

            GROWTH OF THE INDIAN WINE , 

                        THE JOURNEY &

          CURRENT WINE TRENDS IN INDIA

INTRODUCTION…………………………………………

1           1INDIA in wine

2               A Journey of Indian Wines

3              A view on Indian viticulture

4           Wine regions in India

GROWTH OF INDIAN WINE……………………………………………

      Indian wine clubs

     Wine Market in India

     View on INDIAN WINE ESTABLISHMENT

WINE TRENDS IN INDIA…………………………………………

      Wine trend – INDIA

      Premium Indian Reds

      Wine Market trend

 CONCLUSION…..……………………………………………….

INTRODUCTION:

India is a rapidly emerging wine economy in terms of both production and consumption, and has the potential to become a significant player on the world wine scene. This stems from the fact that the country has consistently experienced the highest growth in consumption in the world – around 20–30% a year between 2002 and 2010. To meet this demand, a significant quantity of wine is imported annually but India also has a mix of well-established and evolving domestic wineries.

JOURNEY ON INDIAN WINES:

Historically, the introduction of vines to the Indian subcontinent and the subsequent proliferation of grape growing came from Persia in 500 BC. There is no evidence that commercial viticulture existed before the 19th century, when British colonialists supported the establishment of a local source of supply.

 However, just as the embryonic wine industry started to take shape it suffered a devastating blow from the outbreak of phylloxera. Religious and cultural look on alcohol consumption also proved to be a difficult challenge for the growth of Indian wine after independence from Britain. This continues to be the case in many parts of the country, where prohibition is enforced through local laws.

INDIAN VITICULTURE:

Because of its location, India is not an easy place for large-scale viticulture. With latitudes ranging from 10 to 35 degrees north, the climate can be harsh and the tropical conditions mean that vines have to cope with a short growing season in addition to extreme heat and an unforgiving monsoon. Typical summer temperatures on the plains can reach more than 116F (47C) and rainfall can be intermittent.

The climatic extremes are also exacerbated by high levels of humidity rising from the Arabian Sea and the Indian Ocean. Additionally, Indian wine producers must protect their vines from conditions such as sunburn, fungal diseases and over-ripeness.

INDIAN WINE REGIONS:

The majority of India's wine regions are concentrated in the south-western part of the country, primarily in the state of Maharashtra but also in Karnataka. The slopes of the Sahayadri mountain range which forms the 'Western Ghats' have been identified as the most suitable place for viticulture, due to high altitudes and a correspondingly mild macroclimate. 

Some of the most well-known wine-producing areas in Maharashtra include Nashik, Sangli, Sholapur, Satara, Ahmednagar and Pune. In the state of Karnataka, the best sites are situated on the foothills of the Nandi Hills on the outskirts of Bangalore.

There are six main wine regions in India of which only four are actively producing wine at the present time.  From north to south these are:

1. Kashmir valley

2. Himachal

3. Champai

4. Deccan plateau

5. Nandi hills

Growth of Indian wines:

INDIAN WINE CLUBS:

Indian wine industry continues to grow and diversify. Most of that growth has come about because increasingly sophisticated Indian consumers have developed an appreciation of the social pleasures of sharing a glass of wine and are very willing to try local products. Consumers are also showing a keen interest in developing their wine knowledge and palates which has inevitably lead to the creation of a number of wine clubs and societies.

The oldest of these is the Delhi Wine Club, founded in 2002, which recently celebrated its 200th event.  Congratulations!  Meanwhile the Mumbai-based Wine Society of India, with its distinguished foreign advisers, can lay claim to being India’s largest wine club.  Wine clubs have also been established in a number of other metropolitan areas including Bangalore, Chennai, Kolkata and Nashik.

Wine market in India:

Indian wine industry continues to grow and diversify. Most of that growth has come about because increasingly sophisticated Indian consumers have developed an appreciation of the social pleasures of sharing a glass of wine and are very willing to try local products. Consumers are also showing a keen interest in developing their wine knowledge and palates which has inevitably lead to the creation of a number of wine clubs and societies.

The oldest of these is the Delhi Wine Club, founded in 2002, which recently celebrated its 200th event.  Congratulations!  Meanwhile the Mumbai-based Wine Society of India, with its distinguished foreign advisers, can lay claim to being India’s largest wine club.  Wine clubs have also been established in a number of other metropolitan areas including Bangalore, Chennai, Kolkata and Nashik. (Source: nagpurwineclub)

According to The Vinexpo/IWSR survey 2014 India, consumption of wine in India is expected to grow by 73.5 per cent by 2017. With the growing trend that we see here in the market, 71.6 per cent growth is expected between 2013 and 2017 for red wine consumption in India. The potential we see sis quite positive and we look forward for an increased acceptance of wine in India. (Sumedh Singh Mandala – grover zampa vineyards-INDIA)

INDIAN WINE ESTABLISHMENT:

The Indian countryside isn’t known for rolling vineyards and expansive wine estates, but the nation is now producing enough wine to export to 22 countries.

As the world gets a taste for the Indian grape, the price of vineyard land in some places in the country is estimated by those in the industry to be as expensive as in parts of Bordeaux in France where grapes have been grown for centuries.

The price of land is one of the biggest challenges faced both by , the country’s largest wine producer by volume,  and other brands of Indian wine.

In Nashik, Maharashtra, one of the most fertile regions for growing wine in the country, land prices can cost $250,000 an acre,

“The price an acre for vineyards in Bordeaux is between $5,400 and $560, 000,”

Sula is going all out to promote the product domestically, holding about 1,600 wine tasting sessions a year to educate people on the finer points of enjoying a glass of wine. Sula is also trying to develop wine tourism in India, with vineyard tours and a music festival, which was held at their winery in February.

Their customer base is growing twice as fast among women as men and the company has a wine they say is designed especially for women that is low on alcohol, slightly sparkling and sweeter than other varieties.

“It is becoming more acceptable among women to drink wine. More women are joining the workforce and they are economically independent,” Ms. Oldne said.

Modern, organized retail stores selling alcohol also allow women to buy wine without hassle. Purchasing alcohol in India can be an ordeal for both women and men, with cramped wine and beer shops often located in uninviting back allies.

Greater exposure to Western culture, global travel and experience of other countries where drinking wine is part of the lifestyle, are also helping to drive sales of wine in India. (Ms. Cecilia oldne _Sula vineyard head international – through India real times)

WINE TRENDS IN INDIA:

Wine trends:

After a few years of decreased consumption until 2011, the Indian wine industry has witnessed a steady growth in its wine consumption since 2012, recording double-digit figures in 2013 and 2014.  Vinexpo studies forecast a striking recovery in the India wine market with an assumed growth of 73.5% by 2017.

This translates to 2.4 million cases of wine consumed by 2017. Whilst these figures are a tiny speck in the face of China’s current consumption of 178 million cases of wine, for India, it is still little baby steps in the right direction. Indian wine business continues to survive and dare I say grow, in the midst of battling punitive import taxes on imported brands.

Premium Indian Bold:

Vinexpo studies confirm that Indians predominantly drink reds. Given that nearly 61% of all wines consumed are reds, it is about time we graduated from the poor excuse we’ve been drinking to something world class.  The Indian wine drinker today is more informed and aware, and expects his wine to be like his ego - big and bold. 

 Indian wine producers are pulling out all corks to meet the expectation by investing in expensive oak barrels, better quality fruit, sophisticated winemaking processes, gentler extraction methods, and international intellectual capital by way of flying in winemakers. In fact, at a recent judging.

 Surprised to discover that from the 90 odd wines we tasted, some of the premium Indian Reds were absolutely fantastic – great balance, succulent, bright fruit with some ambitious winemaking. Hardly any of the wines displayed unclean funky aromas – a stigma long attached to Indian wines.

But, because it is “Made in India”, does not mean it is going to be cheap.  Starting at Rs.800 for a Myra Cabernet Sauvignon Reserve, a mid-priced Sula Rasa at Rs.1200 and all the way up to Rs.1700 for a Grover Zampa’s Chena Grand Reserve, these wines compete with entry-level imported brands like Jacob’s Creek, Yellow Tail and Mannara. 

Will consumers buy into the Indian wine story? I believe they will. Indian consumers are smart enough to quickly realize that they would rather pay up for more value of wine (than taxes) in a bottle. (Wine masters @ ITC HOTELS) 

3. Italy and South Africa lead the pack

We all know that French wines are losing ground in India with consumption of French wines falling over 20% over the past year. Australia on the other hand, has become the country’s leading supplier of imported wines, this growth mainly supported by brands such as Jacob’s Creek, Yellow Tail and Hardy’s. However, at higher appreciation and price levels, consumers are seeking more and more Italian and South African wines. Why? Indians are rampantly travelling to regions of Florence and Cape Town, from where the wine regions of Tuscany and Stellenbosch are just over an hour’s drive. Personal wine experiences resonate well with consumers, helping build loyalty to brands and regions as whole. This trend for Italian and South African wines has been witnessed strongly through growing sales in hotels, through retail shops as well as through direct-to-home shipment companies such as WineKart.

4. Pinot Grigio – the Food Pairing Star

The world cannot seem to have enough Pinot Grigio. There seems to be an insatiable thirst for Pinot Grigio across international markets of U.S.A and U.K. The light, crisp and dry Pinot Grigio typically made throughout the Veneto region in North East Italy, plays its part well when paired with any food, much because it is too unobtrusive and lends itself to manipulation by the food dish. Hence when consumed with Italian or Indian flavours, the piquancy of these dishes enhance the otherwise neutral fruit of this wine. Indian consumers will soon realise that its undominating character is in-fact its biggest strength, and its bracing acidity and refreshing quality is in-fact a boon for tropical climate countries such as ours.

5.  Tempranillo and Malbec – rich rounded and robust

Sula’s founder Rajeev Samant admitted at the Masters of Wine Symposium held in Florence in May 2014in the presence of all top wine influencers around the globe that Cabernet Sauvignon in India has been a dismal failure and he has decided to replace its plantings in favour of Tempranillo. For the Indian wine industry, this could mean that soon we will be guzzling a lot of Tempranillo, the grape variety that traditionally originates from Spain used in the making of the much famed Riojas.

There seems to a definite liking towards rich robust reds with riper rounded tannins in reds. Speaking of which have you tried a Malbec from Argentina yet?  Luscious ripe damson fruit, bold flavours, broad silky tannins, what more could an Indian consumer ask for?

So friends - raise you glass, trust your palate and enjoy wines all they reveal themselves to you and revel in all its greatness.

Market Trends:

The Indian wine market growing across 25 % per annum, imported wines approx. 20 % of the total wines.80% of indigenous wines, in that 50 % of cheap table wines, constitutions of medium leveled premium wines are 35 %.

CONCLUSION:

India produce 15 million liters per annum. Present stock 30 million liters. Consumption 1.5 million cases i.e. 13.5 million liters per annum. Grape Plantation on 4000 hectors. Around 80 wineries in the country. Out of 80 in the country 70 in Maharashtra.  Maharashtra State Produce 90% of Total Production. Total investment in the sector INR 2000 Corers. Present Employment in the sectors is 45000 nos.

But some findings on India did raise eyebrows: Indian wine consumption will grow 73.5% between 2013 and 2017 – a period of just four years.

Moët Hennessy’s made-in-India Chandon sparkling wine

Kapil Sekhri, director of the fast-growing Indian brandFratelli Wines (which started with 3 wines in their portfolio in 2010 and has grown to 18 in 2014) says he agrees with the report completely. “Wine has become a lifestyle product. It is a healthier drinking option and is becoming culturally accepted in our country….it is a worldwide trend. With changing lifestyle and favourable government policies, I think it (73% growth) is achievable.”

Oldne adds, “The Indian wine consumption rate per capita in India is 12ml, compared to France, which is 30 litres. What’s intersting is that the consumption of wine in France is declining, and in India it hasn’t even matured.”Another significant trend that she points out, “Wine consumption among women throughout India has increased by 30% in the last 5 years, compared to a 17% surge in demand from men, especially in metropolitan areas. More women are joining the workforce, becoming economically independent.” In addition, “Greater exposure to Western culture, global travel and experience of other countries where drinking wine is part of the lifestyle, are also helping drive sales of wine in India.”

Abhay Kewadkar, business head, wines, United Spirits says the IWSR has credibility, and their predictions have come true in the past, like the one about China becoming a wine superpower. “No one believed the IWSR about China when they predicted its rise 15 years ago. But it happened,” he says. Kewadkar himself believes a big push for Indian wines will come when the much-needed appellation laws come into use in India, something that the Indian Grape Processing Board (IGPB) has been authorized to undertake by inter-governmental wine organization OIV (Organisation Internationale de la Vigne et du Vin). Strict appellation laws and accompanying tracking software will ensure quality, thereby raising credibility by ensuring that all Indian wine producers work within clearly defined norms. “Indian wine consumption is growing each year 15-20%. Multiply that by four years, and yes, the IWSR figure of 73.5% isn’t so hard to believe.”

Abhay Kewadkar, business head, wines, United Spirits says the IWSR has credibility, and their predictions have come true in the past, like the one about China becoming a wine superpower. “No one believed the IWSR about China when they predicted its rise 15 years ago. But it happened,” he says. Kewadkar himself believes a big push for Indian wines will come when the much-needed appellation laws come into use in India, something that the Indian Grape Processing Board (IGPB) has been authorized to undertake by inter-governmental wine organization OIV (Organisation Internationale de la Vigne et du Vin). Strict appellation laws and accompanying tracking software will ensure quality, thereby raising credibility by ensuring that all Indian wine producers work within clearly defined norms. “Indian wine consumption is growing each year 15-20%. Multiply that by four years, and yes, the IWSR figure of 73.5% isn’t so hard to believe.”