India Wine Industry Report

Topics: Wine, Yeast, Winemaking Pages: 19 (5928 words) Published: July 4, 2013
Indian Wine Industry Report

Report prepared by

Western Australia Trade Office – India Department of Agriculture and Food – WA

Mumbai 93, Jolly Maker Chamber II 9th Floor, Nariman Point Mumbai 400 021 Tel: +91 22 66303973 Fax: +91 22 66303977

January 2012

CONTENTS Introduction Market Size Market Development Local Industry Duties and Taxes Australian Wine players in India Market Segment and Market Share for imported wines Duties and Price Structure Wine Duty calculation impact on retail price Pricing factors The Developing market Market Entry Strategy Further Information Annexure I – Map of India Annexure II – Useful Information Annexure III – Major Wine Importers in India Annexure IV – list of other wine Importers and Distributors in Mumbai Delhi Bangalore and Goa Annexure V – Press Clipping PAGE NO 3 3 3 -4 4 5 5 5-6 6 7 8 8 8-9 9 11 12 13-16 17-19 20 -21

Disclaimer: Whilst every care has been taken in compiling the information in this report, the Department of State Development and its contractors neither warrant nor represent that the material published herein is accurate or free from errors or omissions. To the extent permissible by law the Department of State Development and its contractors shall not be responsible or liable for any errors, omissions and misrepresentations made herein.


Introduction: The Indian wine market is in a nascent stage. Estimates suggest an enormous growth potential of this sector both from the indigenous wine making industry and imports. The wine market in India is mainly fuelled by the strong growth in the domestic wine production, but imported wine plays a role in creating awareness and increased demand. Like most products in India, wine is extremely price sensitive. Market Size: As an emerging market India has great potential for wines, with an annual growth rate of 30% albeit from a low base. However, per capita consumption of wine in India is still low compared with other Asian markets. It was estimated that during the financial year 2008/9 the overall size of the Indian wine market was around 1.2 million cases, of which 210,000 cases comprised imported product. This is small when compared with other beverage products. For example, there are an estimated 210 million cases of spirits consumed each year, of which 100 million are cases of beer. The fortunes of the industry are linked to the changing drinking habits of Indians with higher disposable incomes, foreign tourists and visiting business people, and Government (Central and State) regulations and policies that govern the industry. Market Development: Use of the mass media to promote alcoholic beverages in the form of advertising in magazines, TV, radio, newspapers, or on street hoardings is not allowed in India. However in-store advertising or on-premise promotions are allowed in all states except Delhi. In should be pointed out that wine shops differ widely from those in Australia. Marketing strategies have to include other forms of promotion such as promoting awareness on the relative health benefits of drinking wine, and sponsoring appropriate events which are cost effective and targeted towards those socioeconomic groups that can afford wine. The market demands a lot in terms of creating awareness, education and demystifying wine as a product. This can help expand the consumer base and increase demand. Companies wanting to successfully access the Indian wine market need to develop a long-term strategy that includes developing appropriate marketing promotions and educating agents, distributors and consumers about the product and the brand. Ongoing support of agents and distributors is required both on a financial basis (e.g. supporting promotions and marketing activities) and on a personal level. Increasing awareness of wine as a separate drink other than spirits has made it more socially acceptable. Increasing health consciousness and higher spending on corporate and personal...
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