India Winemakers Tap Growth as Duties Boost Import Prices – Bloomberg   Leave a comment

Some interesting statistics on the growth and palate of the wine and spirits market in India and its relative development to China.

““An increasing number of young people like to have wine, because wine is seen as up-market, sophisticated,” said Alok Chandra, a wine consultant with Gryphon Brands Inc. in Bangalore. “There are two or three levels of consumers. One is the 50- year-old guy who says ‘wine is good for health, let me change to wine.’

“The second is women. Spirits are something they don’t want.”

Mumbai-based Sula’s 1,500 acres of vineyards are in Nashik, the country’s largest wine-producing region. India, which produces as much as 11 million liters of wine yearly, grows wine grapes on about 6,000 acres, according to estimates by Indian Wine Academy, a New Delhi-based consulting company.

Faster Than China

Overseas companies including Pernod Ricard SA, maker of Chivas Regal whiskey and Absolut vodka, have a combined share of India’s alcoholic-beverage market of less than 23 percent, Euromonitor data show.

The top-selling imported wine in India is Pernod’s Jacob’s Creek, with a 1.5 percent market share, according to the data. Pernod CEO Pierre Pringuet in February forecast India will be among its top three markets in five years.

While the South Asian nation outpaces the expansion in Chinese wine consumption, the size of India’s wine market by volume is less than 1 percent that of China, which had 13 percent growth last year to 3.48 billion liters, according to data from Euromonitor. Wine consumption in Japan may fall 2 percent to 885 million liters in 2012, from 903 million liters in 2010, the data show.

Indian wine consumption will probably grow between 15 to 20 percent every year for the next decade, and Sula may outpace the industry, Samant said.

28 Different Countries

“We really dominate, at this point, India people’s preference for good Indian wine,” Samant said. “For every one bottle all the other wineries sell, we sell two.”

Yet even Sula’s cheapest wine is out of reach for most people in India, where 828 million live on less than $2 a day, according to World Bank estimates.”

via India Winemakers Tap Growth as Duties Boost Import Prices – Bloomberg.

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Posted July 26, 2011 by arnoneumann in India, wine

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