Posts Tagged “India”

The alcoholic beverage industry in India was unfazed by the global meltdown and inflation as it remained in high spirits, marking a double-digit growth in the year 2008. In a year that saw inflation touching a 13-year high of 12.82 per cent in August, the 150 million cases beer market grew by 15 per cent, according to All India Breweries Association figures.

The wine segment, which has a total market size of around 1.5 million cases, posted even a higher growth rate of 30 per cent, as per International Wines and Spirits Record, while other alcoholic beverages, with a market size of 190 million cases, grew at 15 per cent. Ironically, prices of spirits spiralled high shooting up to 30 per cent in some parts of India. The average price of generally consumed liquors ranges between Rs 600 and Rs 1,500 per bottle of 750 ml. High prices of molasses, the basic raw material for producing alcohol, had sky-rocketed forcing companies to pass on the increased input costs to tipplers.

However, on the corporate front, it was a rather quiet year in terms of big-ticket mergers and acquisitions, but the domestic landscape did feel the ripples of take-overs in the global arena. A case in point is the 7.8 billion pounds take-over of Scottish and Newcastle, which owned 37.5  per cent stake in United Breweries, by a consortium of Carlsberg and Heineken, resulting in conflict of interests in India.

A decade-old domestic wine industry in India is expanding rapidly as Indians acquire a taste for wine. But as Anjana Pasricha reports from New Delhi, high import duties continue to remain a barrier for foreign wine producers in the Indian market.

When corporate executives threw parties ten years ago, they only stocked whiskey, vodka and beer. But as a growing economy and increasing affluence changes tastes, middle and upper class Indians make sure they have wine to offer when friends come over. And those who do not know enough about wine are thronging to wine appreciation seminars and events to master the intricacies of which wines to serve with what.

Many of these events are organized by the Indian Wine Academy. Its head, Subhash Arora says:
“The growth has been slightly faster in the last three, four, five years, because there has been a lot of wine promotion, and people have been trying to create awareness, wine education and things like that, and so the culture is expanding and its increasing regularly,” he said.
The boom in wine drinking has helped the Indian wine industry become one of the fastest growing in the world. The industry took root barely a decade ago, but it now accounts for nearly three quarters of the wine sold in the country.

Rajeev Samant, who began Sula Vineyards in the Western Maharashtra state, says the quality of domestic wine is improving in his words “slowly and steadily” as knowledge of winemaking increases.
“When we started no one had ever planted wine grapes in our area, no one had ever made wine, none one had ever tasted wine, so of course these are pretty big barriers to overcome, but what we have found is that the climate in Maharashtra is fantastic for wine growing,” said Samant. “The knowledge is increasing day by day, and today we make a pretty decent bottle of wine. I would say that probably the best bottle of wine that is made in India today would compare easily with a $30 bottle of wine that is produced abroad whereas five years ago it might have been just a $12 bottle.”
But not everyone is happy. High import duties make foreign wines very expensive, keeping them out of reach of all except the most affluent. Taxes were lowered last year after complaints from the European Union to the World Trade Organization, but they continue to be prohibitive at about 150 percent.

However, the government is under pressure to further slash duties on imported wines, and foreign wine producers are hoping to benefit from the boom in the Indian wine market if that happens.
Indeed, there is still huge potential for growth, because India’s wine consumption, although increasing, is still tiny compared to Western countries. India sells about one million cases of wine a year – that is expected to double by 2011.

Valle de Vin has launched Zampa, its flagship brand of premium wines that is bound to surprise and fascinate wine connoisseurs in India. The brand named Zampa is available in two varietals Zampa Syrah 2007, a premium full-bodied red wine, and Zampa Chenin Blanc 2007, a premium white wine.
Zampa Syrah 2007 is a blend of soft ripe plums and red berries, with fine grainy tannins and a smooth finish. The Zampa Chenin Blanc 2007 is a concoction of honey and lemon with a very crisp finish that promises an extremely sensual experience. Zampa Syrah 2007 and Zampa Chenin Blanc 2007 will be available at Rs. 660/- and Rs. 600/- respectively for a 750ml bottle.

Valle de Vin, a company promoted by industry veteran Deepak Roy, is set to establish new standards in the Indian wine market with its Zampa class of wines. The brand will stand for pure quality and unparalleled culinary experience. What’s more, Zampa is made to suit the Indian palate.
Says Mr. Deepak Roy, “Zampa is a salute to the wine connoisseurs in India. But more than that it is designed to reinvent wine taste in those who have effectively never been able to appreciate wines before. Zampa’s aim is to develop a strong and healthy wine culture in India by educating consumers and eradicating prevailing misconceptions towards wines.”
Zampa’s promise of quality and experience also reflects in its tagline  “Unmask Your Soul”. The package design is creative and colours pastel, on a label that reminds of a Mask made out of grape leaf.

Zampa is made by two of world’s most renowned wine experts, Australian wine maker Paul Bailey and viticulturist Simon Robertson, both of whom are contracted by Valle de Vin to produce Zampa in India. The company has developed its vineyard and winery in Sanjegaon near Nasik.
“With growing popularity of wines in the domestic market, our vision is to be a leader not by volume but by quality and wine experience. As the wine market prepares for growth, one can see an increasing demand from conventional wine drinkers as well as the socialites. Our aim is to introduce these opinion leaders to the Zampa experience and let them set the standards in the society,” adds Mr. Roy.
The company is doing everything required to bring out the best quality in Zampa. It has installed a Cool Room to ensure that the grapes are maintained at 16 degrees temperature after harvesting, a temperature ideal to bring out the best aroma and flavor. The company has introduced bunch pressing, a process that preserves the freshness of grapes and enhances wine quality.