http://www.ambrosiaindia.com

“Champagne is known as the “King of wines” or as most people say it is the “wine for kings”. Probably the best description of Champagne is by Dom Perignon when he had his first taste, “Come quickly, I am tasting stars”. Usually served as an aperitif or as a toast at the end of a meal; hence it is often overlooked when it comes to food.  However, because Champagne is naturally acidic, it makes a really good food matcah - and not just for oysters and caviar as you might predict, but for a variety of different food, which I discovered at a recent trip to Champagne and naturally I am a convert now. Having heard of the Champagne and Textures in Delhi, I immediately booked a table for hubby and me and I was certainly not disappointed.

Lodhi at the plush Aman Hotel exudes class from the minute you walk in until the time you leave. Coming to the experience, to begin to savor the flavors we made a grand gesture with the quintessential “caramelized foie-gras, moscatel grapes, along with cinnamon brioche, the grapes added a twang to the flavor and the foie gras was superbly done- a bite of molecular heaven. This was just very, very good cooking: intense, and obtusely original, in the sense that it’s not rooted in history or region or culinary orthodoxy or fashion. The Brut cuvee 732 by champagne Jaquesson NV perfectly paired from the wine list as recommended by cellar master Ms. Kavita Faiella. Another starter we tried was the “Carpaccio of Scallops, Lemon Caviar, Mustard Cress and Sparkling air” the scallops with flavorful orange ginger compote and plums were superlative and I must say that the Lemon caviar is the epicurean apogee of molecular cooking, delicate and wobbly and they popped like balloons in my mouth to reveal a juicy center - intense, fruity and the type you'd want to drink directly from the bottle. Of course the glass of brut rose by champagne Billecart-salmon NV was just perfect for this one as well.

Kudos also for the “Margret of duck with strawberries and rose petals”, an exquisite concoction with an airy smoky flavor. Ever so willing to experiment “Chef Jonay Armas Armas”, thrills with offerings like this clever one as the combination is beyond compare.

The Rose had a rich, savory character and was delicious with the duck, and had the power to stand up to high levels of herbs and spices specifically basil, mint and coriander.

We ended on a sweet note with “lemon-yogurt soup with hazelnut crumble, Honey mousse and apple granite” paired with Demi sec1 cru “jouy-les-reims” by aubry NV. Demi Sec is a term used to define a wine with medium sweetness; it can be a blend of any grapes. In Champagne, the addition of a dosage or liquer d’expedition after the secondary fermentation determines sweetness. An edge of sweetness to the food (like many classic Thai recipes) then this style can provide a better match than dry. I had this Demi sec once with a wedding cake. I personally love it with strawberries. It is obvious that nothing is compromised here, from carefully engineered dishes, to impeccable service, the ambience is extremely chic, and it definitely is a cut above the rest. Needless to add that being here is reason enough; soaking in an elegant era while enjoying a selection of viands below reproach.

In an exclusive interview with Indianwine.com, Microbial Biotechnologist, Dr Gargi Dey shares her research on Seabuckthorn berries and celebrates her victory in creating Seabuckthorn berry wine which she has named 'Leben'. Any takers for the project are welcome :-)

How did the winemaking journey begin?
I got my PhD degree from IIT-Kharagpur in Microbial Biotechnology and pursued my postdoctoral research at Frankfurt University.

At Frankfurt I learned about genetic engineering of yeast strains and visited the German wineries which got me totally hooked on to wine making.

Why did you choose Seabuckthorn berries for winemaking?
In the recent years there’s been a slow but steady interest in fruit wines especially in US, Canadian and Chinese wineries mainly. The reason is berries (acai berry, cranberry, raspberry, seabuckthorn) are much healthier as compared to grapes because of their high antioxidant activity. So fruit wines are higher on nutraceutical index compared to red wines. The eabuckthorn berries are available in Ladakh and Spiti & Lahaul districts of Himachal Pradesh. I work in Himachal Pradesh and chose seabuckthorn berries for my research.

What are the challenges faced in making wine from seabuckthorn berries?
The main problem with utilizing these berries is their extreme acidity. The total acidity of the juice is so high that even after 14 days of incubation there was no growth of yeast, forget about optimum fermentation. I am presently working in the Dept. of Biotechnology & Bioinformatics, Jaypee University, Solan, Himachal Pradesh.

Frankly as a scientist this was a challenge I could not pass so I took it up and after a year I have solved the problem. Not only have I balanced the total acidity WITHOUT the addition of any chemicals (like Calcium Carbonate) but I have even managed a co-fermentation with 2 cultures of yeasts. The final product was sent for quality analysis and comments by judges’ panel at the India Glycols Ltd, Kashipur, Uttrakhand. The product has come out with flying colors, taste and beautifully refreshing citrus aroma. I have named it LEBEN-it is the German word for LIFE!

So here is a process ready to be taken up for commercialization. The process can be given for licensing to the interested wineries. This process can also be applied for other berry wines. I look forward to interacting with wineries who dare to do something innovative and are looking for value-addition in their product pipe line. Let’s explore the unexplored!

Contact Details: Dr Gargi Dey
Email: drgargi.dey@gmail.com  

"The Indian middle class is hungry for exciting food and drink experiences" - at least according to Mariann Fischer Boel, the EU Commissioner for Agriculture. The free trade agreement between the EU and India was supposed to help quench this appetite. The EU wants to export wine, whisky, olive oil and 40 types of fish, among other things, to India when the customs barriers fall. Yet to whom such treaties are really helpful,
asks- Rajiv Seth

India with growth rate of more than 9%, a huge consumer market but still high tariffs and legislative barriers, is one of the EU's top objects of desire as far as market access is concerned.

The advocates of hyper-globalization often tout totally free markets as the only way forward, but the “secret history of capitalism,” as Professor Chang calls it, is that there are plenty of examples of countries that only advanced when they adopted protective measures that gave domestic firms room to grow.  This lesson lives today in the economic miracles of Japan and Korea. This doesn’t mean that protectionism is always good, only that is-Is not always bad. 

I think this view is true in general, but is it also true about wine?  Or is there such a thing as wine exceptionalism? Let us now dig it further.

Last year an article in Financial times reports on a dispute between the European Union and India that is apparently headed to the World Trade Organization.  The issue is Indian wine tariffs.  India has tariffs on imported wine and high taxes on domestic products, which is perhaps not unexpected, given India’s low per capita income.  You might expect a country like India to impose high excise taxes on luxury goods as a way of funding needed government programs.  I imagine that wine is a luxury for most Indian households, so a high tariff would be a way of taxing the affluent to benefit the poor.  Wine consumption is very low in India about 16 million liters per year, which is practically less than a spoon per capita, given India’s huge population.

But the Indian market is growing and is expected to double in the next three-four years, so there is something at stake here.  More to the point, however, the Indian taxes are not for revenue only — some are intended to protect the nascent Indian wine industry.

WTO rules allow countries to have tariffs, but require that they satisfy a “national treatment” rule.  This means that, once foreign products have entered the country and paid the duty, they must be taxed and regulated just like domestic goods.  This is where India has run afoul of the WTO.

According to the Financial Times article, three Indian states, Goa, Maharashtra and Tamil Nadu, which represent important potential import wine markets, impose additional discriminatory domestic taxes on foreign wines, while exempting domestic wines to try to encourage the growth of the industry.

India imposes customs duties of up to 150 per cent on bottled wines and spirits at the border. These are supposed to be equivalent to the excise duties paid by domestic producers.

But the EU says Maharashtra is imposing a special fee on imported wines and exempting local producers of wines and spirits from excise duty. Goa and Tamil Nadu are charging extra import fees while Tamil Nadu continues to operate restrictions on the sale of imports. If the accusations are true, this is contrary to WTO rules, and hence bad trade policy. But is it good economic development policy?  That is, is it a good ideal way to build the Indian wine sector? Or is wine different?

Yes this is a good idea. Yes this is Vino Exceptionalism and not protectionism.

Mentioned above was one side of the story. The story you have been reading over and again, and believed that it is true, because after all it is told to us by our own wine writers, our very own small but selfish importers.

Perhaps in the absence of any informed defense initiative, the charge of “India adopting protectionist Policies” seemed justified.

In the remaining article I would like to contribute through some government papers so as to help my senior trade members to dig it further and prepare an offensive to defend the charge of US and WTO against our Federal government in the wake of charges leveled against India adopting protectionists policies.

One of the greatest international economic debates of all time has been the issue of free trade versus protectionism. Now let us first understand what is protectionism? The meaning and measure of protectionism are different to different countries. Perhaps the game plan of protectionism is different to rich and the poor. And that is where the might of US and EU play differently then our India.

As is evident we play with old stick that is simply put high tariff rate to protect domestic industry. Curiously EU and US play it opposite. Reduce the domestic tariff and enter in free trade agreements and by doing so ask the poor countries to reduce their tariffs to have a level playing field, so that poor third world counties can have access to European lucrative markets. Nice Trap? The game of protectionism has begun. Now comes in picture non-tariff trade barriers. Simply the quality parameters, or in case of wine permitted oenological practices, use of banned additives, labelling requirements and so on. The barriers don’t stop here.      

Wines from third world countries continue to face tremendous competition from highly subsidized European wines, even though the WTOs Agreement of Agriculture intends to significantly reduce these kinds of subsidies. Although the EU unilaterally classifies these subsidies under the “Green Box” (i.e., not trade distorting) these subsidies are direct producer supports that allow European producers to be more competitive by absorbing taxes and import duties and subsequently lowering the price of their end product.

According to 2006 International Trade barriers report, European wine producers received €1.4 billion (USD 1.8 billion) in subsides from the European Commission in 2006. These subsidies come out of the EU’s revised Common Agriculture Policy (CAP), which are distributed throughout the wine market as follows:

• 42 percent (€512 million) represents the direct or indirect costs of the various forms of distillation;
• 37 percent (€450 million) represents expenditure on the restructuring program;
• 13 percent (€156 million) represents aid for musts; and
• The remainder is divided between the private storage of wines and musts, refunds and the definitive grubbing up of vineyards.

* Within the distillation process wine is processed into alcohol, which is intended partly for the potable alcohol market, with the remainder intended for the fuel market. The aim of distillation is to withdraw production surpluses from the market at a guarantee minimum price.

With “new world wines” (i.e., wines from Australia, Chile, New Zealand etc…) gaining increased market share over past years, the EU has faced a decline in sales, both within Europe and in export markets. In response, EU wine producers have been pressuring the EU Commission and individual Member governments for additional subsides to support their industry. This level of subsidization encourages overproduction because wine grape growers are guaranteed a buyer. If sold, the grapes are fermented into wine; if the grapes are not sold for wine, they are sold to the government to be distilled into ethanol, a process referred to as “crisis distillation”. If the vineyards are not yielding profit, the growers gets grubbing up subsidy. If they want to replant vine they again get subsidy. If they are able to export they are encouraged by export refunds. For promotional activities within domestic and international markets they are supported by various marketing mechanisms and so on. 

A little-noted consequence of the crisis distillation of wines subsidy is that it encourages the overproduction of spirits in the EU, with some of this surplus being dumped on the world market. Led by France, Spain and Italy, the EU is the largest producer and exporter of spirits in the world, accounting for more than 90 percent of the $1.5 billion world market.

Oxfarm international which is an organization working to find lasting solutions to poverty and  injustice reports in its briefing papers that the competitive producers of spirits in developing countries are shut out of the lucrative world market for spirits by these European distillation subsidies. A study commissioned by the EU itself found that because of EU subsidies, ‘wine producers from third counties, who could also potentially deliver wine for distillation of potable, alcohol, are hindered from entering this market’. The study explained that’ the EU aid reduces the EU distillers’ cost for raw materials, which leads to lower prices of potable alcohol’.

The elimination of EC distillation subsidies would cause world prices for spirits to rise and EU production to fall. If prices rose by 10 percent, producers of spirits would earn $150m in additional annual revenues. If EU exports decreased by 25 percent, producers in other countries would enjoy additional market opportunities worth as much as $350m. To put this figure into perspective, the Global Fund to fight AIDS, Tuberculosis and Malaria spends $450m a year on fighting malaria, the world’s number one killer disease.

Armenia, Chile, Malaysia, Mexico, South Africa and India are all competitive producers of wine and spirits and are harmed by EU distillation subsidies. Such subsidies hurt these countries by suppressing the world price of spirits and by impeding their exports of spirits to world markets, in breach of WTO Agreement on Subsidies and Countervailing Measures.

My readers can really have a clean pictures of EU’s support to its wine industry if they go through council regulation (EC) No 479/2008 in which official journal of EU introduces provisions of EU’s support programs to its wine industry. The council regulation providers supports to member states by grants for promotion on third country markets, restructuring and conversion of vineyards, harvest insurance, crisis distillation, By-product distillation, and so on.

Having given a fair idea about the EU’s support measures, I have to ask you Is it not protectionism? The rich countries can offered to grant subsidies, reduce tariffs only to gain access to potential markets. Their products are cheap because their cost is subsidized. India on the other hand cannot afford to grant these subsidies to its industry and thus impose tariffs to protect its domestic industry. If EU want’s a level playing field they should also notice that Indian wine industry is not supported by any foul subsidy measures as their member countries.

One advice to Madam Fischer Boel is if EU is planning to take India to WTO dispute settlement body, (DSB) then she be advised many plaintiffs from butter to orange juice, Tobacco to Tomatoes and Corn to rice are waiting for her, since developing countries whose farm sector are being damaged by these illegal subsidies are found all over the globe.

On the other hand all of us would like to tell our newly formed wine importers association to stop crying for govt. Policies and work together to press the hospitality industry to pass on the benefits of customs duty relief to customers and reduce their over 300 percent mark ups to reasonable level, But they will not do so as nobody wants to hurt their own patrons.

- Rajiv Seth

Rajiv Seth became the first Indian in the year 1987 to receive a gold medal from wine and spirit education trust, London. Presently he is making continuous efforts in educating the lab assistants of a number of wineries on procedures of vinification through his manuals. He also writes for Delwine.  

Manoj Jagtap, Coordinator of Nashik Valley Wine Producers' Association (NVWPA), is a known name in the Indian wine industry. His firm Kamaltara enterprises is into manufacturing and supplying accessories to the industry. His catalogue lists wine racks and stands for storage purposes, wine bottle-openers, wine glasses, cork screws, bottle caps, among other useful accessories. Being a resident of Nashik and coordinator of NVWPA, he enjoys organising vineyard tours as well.

Nashik, the wine capital of India is going places, and Jagtap is enjoying doing the needful.


The Indian Wine industry: Manoj Jagtap tells Nashik's biggest success story even as it unfolds...

What is NVWPA all about?

Nashik Valley Wine Producers Association (NVWPA) is an association of wineries spread across the Nashik Valley. The association initiates as well as participates in various activities mainly aimed at promoting wine industry and wine culture in the country.
 

Proud to be part of the Wine Revolution in India 


As a result of efforts taken by individual wine-manufacturing units and the concerted efforts of  NVWPA, the wine industry has now reached the take off speed. Not only quantitatively but also qualitatively our wines have become so popular that the world is sitting up and taking notice of our excellent wines.

 
Increasing vineyards' acreage             

Where there were just handfuls of wineries earlier, today there are more than 30 with dozens more coming up every year. Thousands of acres of wine grapes have been planted in Maharashtra, bringing prosperity to the small wine grape growers. Still there is tremendous potential in the sector.

Success through sweat

India's Wine Revolution is an instrument in making Nashik the Wine Capital of India. This has not happened over night. This is a result of tremendous struggle the wine industry has made to achieve the present status.

Learning and growing

NVWPA is a witness and active partner in the over all development of the industry. The association organizes and participates in various workshops, seminars, wine festivals, etc. to promote wine culture. More importantly, it creates and maintains good relations with the authorities and impresses the importance of nurturing the rising industry, with a view to give a boost to wineries in general and wine grape growers in particular.

Thank you, Ministers             

As a part of these efforts, we, the NVWPA thank the Hon. Union Minister for Agriculture, Govt. of India, the Ministry of food processing, the Ministers of Maharashtra State Government for listening to our problems, understanding them and sorting them out, to enable the industry sail smoothly.


To summarize

So, this is how NVWPA is making continuous effort to solve the problems and remove the hurdles coming in the way of its members, to enable them to journey further towards greater progress, inciting vigour and confidence.


Three cheers for the Wine Revolution in India !
 

Not many years ago, any one who tried to buy a bottle of alcohol standing outside the nukkadwala wine store was looked down upon as a drunkard. However, times have changed. The modern-day retailing has revolutionized the entire experience of alcohol shopping. So much so that even women these days find it convenient enough to walk into an alcohol store inside any super market and pick up their favourite brand of beer or wine.

Living Liquidz with about 42 outlets spread across Mumbai from Church Gate to Nalasupara and Navi Mumbai, has a lot to its credit. Rojita Tiwari reports.

Offering over 1000 different types of liquor brands and more than 300 wine labels covering every region of the world, Living Liquidz is a venture by entrepreneur Moksh Sani (Managing Director) & Manish Sani (Chairman). An initiative to make available, exclusive wines, beer and more to the common man and promote the concept of fine wines as a part of the urban cosmopolitan lifestyle.

However, the journey so far has not been easy for Moksh. A country where the import duty is sky rocketing and wine and beer are still considered in the same category as spirits, the challenges are just never ending. The biggest challenge right now in front of us is to make people buy BIO from retail., says Mokesh Despite having the best range of brands and comfort of buying, people still prefer to buy alcohol from various other channels which is most of the time not genuine. It is high time that the government realise what a revenue loss it is to the country.

Just recently we have launched ‘Living Liquidz’ – a luxurious liquor shopping experience along with a Wine Bar ‘n’ Café at Tata Star Bazaar, Andheri (W), Mumbai. This store launch is a breakthrough in the Indian shopping experience; with the city’s first, largest and most eloquently designed, full spectrum liquor store accompanied by a quaint Wine Bar ‘n’ Café with delicious desserts from Deliciae and exquisite wines from FineWinesnMore (FWM).

This is one of its kind in the country as it not only houses exclusive brands but also offers the customers free wine tasting for Indian and international brands at its Wine Bar ‘n’ Café . We have also plans to conduct wine training & bar tending workshops very soon, added Moksh.

Sharing the company’s expansion plan, he says, in next six months we have seven new stores coming up, out of which three are with Star Bazaar, three with Reliance Fresh, one with Hyper City and one more which I would not want to talk about at the moment. But we have been content working and growing with all leading FMCG retailers in Mumbai like, Hyper city, Tata Star Bazaar, ABRL More, Reliance Fresh, Spinach, Spencer’s.

The key to the company’s success is its “Service”. This is one word I believe in. This includes the look and feel of our store, online services, door delivery, return back policy, bar tending needs and venue booking. We have maintained our uniqueness time to time. We have tried to replicate duty free shopping at Star Bazaar, Andheri. Now I am eager to open an authentic cellar in Mumbai along with a malt cigar room. Moksh is as much positive about the future of liquor retailing in India as the future of his own company. The industry has already achieved a break through in 2007 with the new wine and beer policy. Five years down the line I see further improvements in policy in terms of stores in gas stations and theaters etc. As far as retailing is concerned, if the government does not bring down taxes on BIO goods, I do not see any improvement in sale.

We note another example of his optimistic attitude when he announces that Living Liquidz is all set to introduce ‘LIVE 3’ a packaged drinking water label in the market very soon.


Lets say cheers to that!

Interview with Ravi Gurani from brand new York Winery, located at Nasik. The whole family is getting serious in to the wine business.

York Winery
The notion of York Winery was conceived by my father, Lilo Gurnani, back in 2004. It was out of a passion for wine and the opportunity in the then nascent domestic wine market. The project took off in April 2006 leading upto the first crush in February 2008. A lot of time was dedicated to understanding the workings of the industry at a worldwide and domestic level before the actual work began. It is a family concern also involving my brother in law, Ravi Shamdasani. My younger brother Kailash is studying to become a winemaker in Adelaide, Australia and will be one of the first qualified winemakers in India in a couple of years when he graduates. We have a South African winemaker who consults for us and under whose guidance the wines are made. The objective has been to produce international quality wines at reasonable prices. Now I know everybody says they are making quality wines, but we genuinely know and believe that our wines are better than many in the market.

The Winery

Nasik being the place with ideal climate for growing wine grapes, the winery is located in the Gangapur area not too far from Sula Vineyards. It overlooks the scenic Gangapur Dam and has rolling vineyards on the sides. The winery is state of the art and at full capacity can handle upto 1 million litres of wine. The current capacity of the winery is around 400,000 litres. There is also a 6 acres estate vineyard which grows grapes for our Reserve wines. The winery has separate fermentation halls for red wines and white wines. The tanks for the red wines has been customized to enable punching down on the grapes during fermentation, which I believe is a first in India. We also have a barrel cellar which is underground and used to age the red wines. We have also planned for sparkling wine in the future.


The Wines

The wines will be sold in the domestic market under the York brand. Our winemaker being South Africa, the approach to winemaking and viticulture is very New World unlike some of the other wines in the market who have European winemakers. The regular varietals include Chenin Blanc, Sauvignon Blanc, Zinfandel Rose, Shiraz & Cabernet Sauvignon. The grapes for these wines are sourced from our contract farmers with whom we work very closely throughout the year to monitor the quality and yields of the vines. We also have a Shiraz and Cabernet Sauvignon which are aged for 8-10 months in French, American and Hungarian oak barrels. The grapes for these wines are grown on the estate and the wines will be sold under the York Estate Reserve label. We are also planning to make a dessert wine and sparkling wine in the next vintage.

The wines have been priced competitively compared to other premium wines in the market. This is in line with our philosophy of making quality and affordable wines as generally Indian wines are still expensive for the type of quality one gets compared to imported wines.


The Tasting Room

We have also opened a Tasting Room at the winery for visitors. It will also include guided tours of the winery. The Tasting Room overlooks the scenic Gangapur Dam, rolling vineyards and a gallery looking into the inner workings of the winery. Its open for visitor 7 days a week from 12 am to 10 pm. The winery itself is conveniently located just 5 mins down the road from Sula Vineyards in Nasik.

The way forward

We have started our Tasting Room about 4 months back and also launched the wines in Nasik. We plan to start selectively releasing our wines in certain parts of Mumbai in restaurants and retail outlets through to the end of the year. We want to focus on Maharashtra first before venturing into other domestic markets. Also planned are exports to UK and Hong Kong, but that would be under a different brand from York. Infact we will be shipping our first container of wine to UK next week!

for indianwine.com

Venki

Twenty Six years back Grover Vineyards took it upon itself to revive the art of wine drinking in India. Unlike its competition, it shuns ordinary table grapes, preferring French wine grapes for producing one of the best Indian wines.

With a portfolio comprising of- La Reserve, Cabernet Shiraz, Sauvignon Blanc, Viognior Clairette and Shiraz Rose, Grover Vineyards Ltd., is seeing its wines growing more and more popular each year. “La Reserve is not only our flagship wine but one of the most appreciated wines from the portfolio,” Says Kapil Grover, scion heading the eponymous firm.

Needless to say, wines have come of age in India more so among all age groups, stressing his passion for quality, says Grover, “Our objective is to become number one in both the red wine and white wines. It has been the general belief that Grover’s La Reserve is no. 1 in red wine and Sula wears the crown for the white Sauvignon Blanc (an opinion endorsed even by delWine till a couple of years ago before a few newer serious producers threw their hat in the ring too). I want to be the quality leaders for both red and whites.”

Asked about the fastest growing brands in his company’s portfolio at present, Grover informs, “We try to maintain that growth across all brands. Our largest in terms of volume is the Cabernet-Shiraz. I believe that if we went by market demand, the La Reservè would be the fastest growing brand in our portfolio.” However, he stresses, “We cannot grow at the rate demanded by the market, especially when it comes to the production of La Reservé, because we need to maintain the quality for which we are known.”

Grover Vineyards has already doubled fermentation capacity, which will thereafter be trebled to 1.8 million litres near Bangalore and 300,000 litres in Sangli, Maharashtra. The firm has invested Rs 4 crore at the main winery near Bangalore and Rs 1 crore at the unit in Sangli. On the issue of percentage growth coming along in the company in comparison to last year, Grover feels it is growing well. “We are trying to sustain the same growth year- on-year and we have grown by 25 per cent since last year.”

On the turnover of the company in terms of sales volume the winery produces 1,200,000 bottles a year. Moreover, 30per cent of Grover Vineyards production is exported to more than 10 countries and appreciated in some of the world best restaurants. A growth of 25-30per cent year-on-year is expected. “Very recently, we unveiled the Art Collection,” says Grover. “As you may be aware that Grovers believe in innovating itself from time-to-time. We thought of being creative and thus by applying-out-of –the box thinking, the wine-art labels were created. Each wine label is a work of art that is conveying the vision, story and character of the best winery.

Besides the Art Collection, we are working on improving our wines too. Other than the Art Chenin and Shiraz, there are no new products on the slate, says Grover. “We believe that we are quality players, and each year strives to produce a better quality than the previous year. We are focusing on our Vineyards, and upgrading the technology throughout, so as to produce grapes of better quality.”

Speaking about the expansion of production capacity in the near future, Grover is very bullish. “We have recently invested in a new barrel room and have increased productivity. I Do not think we are looking at any increase in the same in the near future.” The aim of Grover Vineyards is not to be a mass producer, in fact, we are a boutique, and familyowned winery with emphasis on quality.

The latest additions to the company’s portfolio include The Art Collection, which comprises of - Sauvignon Blanc, Viognier, Cabernet Shiraz, Shiraz Rosè and the company’s flagship wine- La Reservè packaged with new art labels is the latest addition. “Very soon, we would be introducing Chenin Blanc & Shiraz as an addition to the Art Collection, says Grover.

Commenting on the current trends that he sees in the Indian market relating to consumption of wine, Grover feels, wine has become famous as a culture with few states and as an entertainment in various part of the world. India, though, new with the age old wine culture is in its phase of transition. Winemakers of all sizes, from international spirit giants to home brewers see huge potential in India’s booming market. And, the current scenario only determines the success of wine in the Indian beverage industry in the coming years.

Stressing on the major constraints that the domestic wine industry is facing in recent times, Grover informs that there are few obstacles that the wine industry and wine-makers are facing at present.

The very first and foremost being- education on wine at all the levels of supply chain, on the product knowledge, storage, transfer, service and consumption of wine is lagging in a big way.

An inadequate knowledge in terms of technology used for the growth of superior quality of grapes leads to slow progress in this area which makes the process time consuming and cumbersome, feels Grover. Other than this, one needs to work even harder with the quality of grapes available in India. Last but not the least- the absence of uniformity in the laws, duties and taxes levied on the wine industry is very discouraging for the growth of this industry. Since alcoholic beverages are a state subject, each of India’s 29 states has its own rules & regulations and duties & taxes.

There seems to be a drop in sales in almost all industries at this time of recession, Grover urges. We are looking forward to the recovery of this global virus and hoping for a bright future of the Indian wine scenario. The company has increased production and has laid immense emphasis on giving its customers great quality wines. India is still at a very nascent stage as far as the wine economy is concerned. “I believe that it is most important to introduce entry level wines which are reasonably priced so that it attracts the new consumers and encourage them to adopt wines,” informs Grover.

“We use & cultivate the following grape varieties: - Cabernet Sauvignon, Shiraz, Sauvignon Blanc, Viognier and Chenin Blanc.”

Wine import in India is not an easy business, Grover feels. In fact, there are a lot of new entrants who have come and gone. The taxation policies along with the storage facilities are conditions that make it difficult to sell quality wines in India. There is a good future for imported wine brands in India, and with the support of the government we can hope to have a great wine market
 

http://www.ambrosiaindia.com
 

With the company’s roots at the prime distillery plant in Bangalore that has vested in it a production capacity of 300,000 cases per month, John Distilleries Ltd, A Paul John enterprise, also has its own distilleries at Goa and Chhattisgarh. These apart, there are several associate plants including four plants in Andhra Pradesh, two in Kerala, one in Pondicherry and more at Haryana, Punjab, Bihar and Himachal Pradesh, thus heralding the Group’s recent entry into India’s northern states as well.

Constantly driven to endeavour new venues and achieve newer heights, Paul P John, the Chairman of the acclaimed Kumarakom Lake Resort, Kerala, India known for its finesse, is the brain behind this company. Undeterred focus has led him to venture into India’s lucrative wine market with Chateau de Banyan, a company that has forged international associations with renowned Italian winemakers to bring out premium wines into specific cities and high- end locations across the country.

On his company’s fastest growing brand portfolio, John informs that Chateau de Banyan currently has a single brand, Big Banyan Wines, which is doing well across South and Goa. “Under Big Banyan we offer 5 single varietals; 2Whites (Chenin Blanc and Sauvignon Blanc) and 3 Reds (Zinfandel, Shiraz and Cabernet Sauvignon,” says Paul.

Over the last year Big Banyan has grown at an impressive rate of 52per cent and the turnover of the company has been approximately INR25 million at retail market value for the financial year.

John stresses that Chateau de Banyan is committed towards providing international quality wines for our patrons. Towards this various initiatives like wine education/training/appreciation sessions, for both consumers and F&B service personnel, are regularly conducted. Big Banyan also identifies with a lot of platforms like Arts, Cuisine/Gastronomy, Theater, Music, etc. Several other initiatives like Home Delivery, Online sales, merchandising, wine event management, sommelier services, specialty pairings, wine gifting, etc have also been launched.

At present the wine industry is going through volatile times, John feels. There are certain recommendations pertaining to effective marketing and popularisation of wines, which are at Govt. policy draft stages with various state and central governments. As such we would wait and watch and would plan or invest once there is further clarity on the policies governing wines and their sale in India.

“As mentioned, Chateau de Banyan is committed towards creating a brand for our wines and thus a lot of effort and investment in establishing and creating a brand are under way, we do not plan to launch any other brand per se but more varietals under Big Banyan portfolio as and when the right fit and opportunity arises,” says John.

From the producers point of view; the Indian wine industry being in its nascent stages is undergoing a lot of interesting activity, whereas on one hand big names have entered the fray and a lot of smaller players have appeared and then vanished from the radar, he feels. The industry is a very intensive and serious one and only the most dedicated will stand here in the long run. We noticed that seeing exponential growth potential too many players entered the fray without having either the technical expertise, passion or the financial backing for a long haul and this resulted in a deluge of brands in the market for the short run which naturally upset the organic and balanced growth potential for serious brands, but again this is a short term phenomenon and a correction is imminent in the next 2-3 years.

From the consumer’s point of view, we think that the percolation of wine as a healthy beverage has still not happened to the 2nd level of the market pyramid, informs John. There are a lot of myths, misconceptions and unnecessary aura created around wines which naturally limits the willingness of nouveau wine drinkers to engage with this beautiful beverage. Wine education, as we have seen is a slow but a very effective mode of transformation only that it needs to be done on a much wider scale which is beyond the purview of any one single company and has to be taken forward as an industry only.

Since wine is an acquired taste with some much personalisation, if the noveau wine drinkers are not exposed to wines in a phased and a planned manner, chances are that she will not take to wines are quite high.

As far as marketing statistics are concerned, cheaper wines and ports still constitute a major chunk of the wine sales in India and that is probably why it inflates and exaggerates the overall potential for premium wines, a misleading statistic that we think has caused many a players to read the market potential wrong and burn their fingers.

Indian consumer is evolving and taking slowly to embracing wines, she just needs a little more time and authorities will have to do their bit by making it much more affordable than it presently is.

According to John the major constraints that the domestic wine industry faces in recent times include:
Lack of wine awareness amongst consumers; Improper market potential assumptions; Unwillingness to adopt a long term strategy; Wine producers are a fragmented lot, they need to rise as a fraternity; Impractical short term sales strategies like over the top discounts , trade schemes, freebies have started to erode the value of all concerned and the producers are forced to be played around by the trade just because of a handful players who are mostly in for a short haul; No uniformity nationally on taxation and levies; No laws or codes governing manufacture of wines and growth of grapes, resulting in India as a whole suffering from an identity crisis for its wines in the international arena. John emphasises that viticulture and enology should be brought under the ambit of agriculture ministry which will allow it many an advantages to establish and continue the growth.

Asked about the drop in sales, John stresses that there has been no drop in the sales of Big Banyan wines. However, overall, there has been a reduction in the volume of wine sales due to the increase of duties on wines, which has made a lot of quality wine unaffordable for the average consumer, says John. The consequent increase in spends and promotions by all companies, including ours, has lowered the profitability of the entire industry. However, with the quality conscious consumers opting for brands like Big Banyan, our sales have actually grown and that has offset the effect that we would have otherwise faced due to the extra spends.

The slowdown in the economy has made consumers more conscious on spends and there has definitely been an impact on the wine industry, which sadly is still considered as a luxury and has some time to percolate to the main stream beverages. In our opinion the momentum for wine growth should be maintained, as it is a relatively new concept in India and for these regulators will have a major role to play in rationalizing the duties and levies and in changing the perception of wine as separate from Spirits.

The major components of cost to consumer are the levies and duties. This places premium brands with a higher costing under pressure and some companies prefer to flank and hedge their portfolio with cheaper brands.

We are experimenting with a lot of grape varietals and quite a few grapes have the potential to be grown in India, reveals John. The grapes that are most popular and that seem to have taken to the Indian climate well are Chenin Blanc, Sauvignon Blanc, Zinfandel, Shiraz and Cabernet Sauvignon.

Imported wines already constitute approx 20per cent of the total wines in India. The market trends indicate year on year growth of approximately 20per cent for imported wines over the next few years and the future is surely bright. That being said, the current slowdown for the industry will most likely hit new importers, especially if they intend to import wines that are not global brand names.
 

Even though most of the imported wines are of bulk wine stature in their home markets, they offer higher perceived value to the consumer, due to the imported tag. Most of the premier wine labels are yet to make their way into India. The ideal way for importers, given the current industry scenario, would be to partner with existing market players, bring in high quality wines, and invest in the market today and to look for profits in the long term, he concludes.

http://www.ambrosiaindia.com

KARNATAKA WINE BOARD

(Govt. of Karnataka Undertaking)

Indra Priyadarshini Building, Cubbon Park, Bengaluru.

Opportunities for farmer and entrepreneurs from Karnataka Grape Wine Policy

            Karnataka is one of the important states growing different varieties of Grapes. Nandi Valley and Krishna Valley is considered as the important grape growing regions in Karnataka. Grape cultivation requires heavy investment of capital. In addition, to produce grapes of high Quality, the farmers have to put in hard efforts and additional investment. Nevertheless, the grape growers are always found to suffer from the variation in the price of grape in the Market and often fall into severe economic crisis. To overcome this problem, there is need for Value addition of the grapes and promotion grape products in both the local and international Markets. One such important product of grape is wine. In Karnataka, there are plenty of opportunities for production of wine. The climatic conditions in the state are best suited for the production of grapes suited for wine making. There is a very good demand for wines both in local and international markets.

            Compared to the other countries of the world, consumption of wine in India is minimum. In our country, the rate of wine consumption is growing at 25-30% per year. By providing congenial atmospher to the wine industry, giving up the thinking, that wine is an alcoholic beverage, and simplifying the taxation system, it is possible to boost the production and consumption of wine. By providing proper impetus to wine production and marketing, it is possible for the farmers to get good remuneration of their produce. Farmer is going to get good remuneration of their produce. Farmers are going to come out of market uncertainties, by linking grape production with processing. Since the export prospect for wine is huge, there is always an opportunity to get additional profit. With this background, there is a need for an integrated policy as related to production and marketing of wine in the state. Understanding the need for supporting wine production and marketing, the Government has declared a “Wine Policy” in the state.

            For implementation of various programmes and practices for the promotion of cultivation of wine grapes, wine industry, research, exhibitions, trade fairs, tours programmes and visits both within India and Abroad, sales of wine and market promotion, a fund of rupees 4 crore has been allotted to wine Board.

Karnataka Grape wine Board was established in November 2007. The board was renamed as Karnataka wine Board in the year 2008

The constitution of the board is as follows

:

PROGRESS OF WINE BOARD AS FOLLOWS;

         Simplification of rules while issuing license and Permit to the Wineries.

·         Simplification of rules while issuing license and Permit to the Wineries. The power of issuing license to the winery by Excise Commissioner have now been delegated to the Deputy commissioner(Revenue)

·         Winery license fee of Rs 5,000/-per annum will be charged. Earlier it was Rs.50,000/-

·         Categorized ‘Fortified Wine’ and ‘Wine’ differently.

·         Permission given to open Wine Taverns to sell the Wines separately.

·         The license fee for opening Wine Tavem is Rs.1000/- per annum.

·         Occasional license fee of Rs.1000/-per day will be charged to serve the Wines.

·         Levy of fee of Rs.300/-Per bulk litre is fixed for wine manufactured outside the state of Karnataka.

·         Additional special fee of Rs.300/- per bulk litre is fixed for wine manufactured outside India and imported into Karnataka

·         Permission given for consumer to retain wine up to 9 litres.

·         Bottling of Wine license fee of Rs 1000/- per annum will be charged. Earlier it was

                  Rs25000/-

·         Label approval and renewal license fee of Rs1000/-per annum will be charged.

·         at present the total area under grape wine cultivation in Karnataka is around 600 acres and the total grape wine production is around 16-18 Lakhs liters

·         License to open Wine Boutique with a minimum build-up floor area of 200 sqft of RCC and by paying a fees of Rs 5000/-

·         To open a wine Boutique in super market, mall, multiplex, etc the minimum space required at such locations cannot be less than 15000sqft. The license fee is Rs.5000/-

·         Wine industry as been declared as 'Horticulture and food processing Industries

·         Wine Board established its own building at Cubbon Park.

·         Wine board has participated in public event like the 'Flower Show' at Lalbagh and 'Fruit Mela at Hopcoms and educated more than a lakh visitor about wine.

·         The area under Grape wine cultivation in Karnataka was around 600 acres before The Wine Policy was introduced, at present it has increased to 1800 acres.

·         The total Grape Wine production was just around 16 to 18 lakh litres per year ,now it has touched 20 to 25 lakh litres after the new Wine policy was introduced

·          Karnataka state had only two wineries; Grover Vineyard in Dodballapur and Hampi Heritage in Bijapur. The new Wine Policy has helped the wine industry to set-up 9 new wineries in Karnataka after the establishment of the wine Board

·          Karnataka Government has granted 141.2 acres of land at Thoravi village at Bijapur to the wine Board for development of Wine Park.

·          Employment generation for the youths and farmers

·          It helps to promotes contract farming ·

·         It helps to get assured price and income.

·         Industry helps to process the products and it avoids spoilage

How Wine Industry is Growing

v  Wine industry is in a nascent stage in India. Estimates suggest an enormous growth potential of this sectors. Both the indigenous wine making industry and the wine market of India require equal attention for proper growth and expansion

v  India is recording strong growth in Wine consumption, mostly among younger people with good income in the main cities. The Market currently involves 1.6million families, threat in just a few years is expected to expand to 3millions

v  Wine consumption in India is still limited but the growth trend is impressive at a rate of 30% India appear to be hot on agenda of world’s best wine makers.

Advantages and Benefits of Growing Grapes

v  Grapevines becoming the most widely grown temperate fruit in the tropics. Currently world production is over 3million tons annually, with India producing more than a million tons.

v  Usually grape grown in the places where it is not possible for growing other crops while seeing the dry unfertile land of Bordeaux, France one would think that it is a land where growing cannot be done. But to our surprise, it is the place in which some of the best grapes and wine are produced

v  Grape cultivators will get assured buyers as the wine industry is growing day by day and the wine makers will purchase the yield

v  It is clear that tropical grape production is now a major world industry and the grape are able to be utilized for fresh eating, wine and raise in production

Total Wine sale in Karnataka (including forfeited Wine)

 In view of the above development, Karnataka Wine Board has conducted a Wine mela and Seminar at 10th July at Lalbagh

            The main idea behind this activity is to educated farmer and industrialist and to make the general public aware about wine cultivation production and contract farming and of the opportunities available in Karnataka. And also to make the farmers and entrepreneurs aware about the amendments made to excise and industrial rules. It is also organized to attract the investors by which we can improve contract farming and thereby ensuring assured income.

            For his event, more than lakh people visited. Farmers public, Industrialist and Journalist expressed their good opinion about this programme in this fest more than 800cases has been sold upcoming Wine Industry list has been enclosed in Annex I

Established wineries in Karnataka are as follows

            1. Grover Vineyards, Doddaballapur

            2. Hampi Heritage Winery, Bijiapur

From these wineries following brands are

            1. Grover

            2. Naka

           3.KinViha                                                                                                    

DR.B.Krishna
Managing Director                             
Karnataka Wine Board

Economy Refrigerated Ltd., a company that handles turnkey winery projects for Indian wineries has the privilege of knowing them like none else.

Vijayalakshmi Sisodia at Economy Refrigerated Ltd. shares her take on the Indian wine industry in an exclusive interview with IndianWine.com…

Introducing the company…

Elaborating on Economy Refrigerated Ltd’s  association with Indian wineries, Sisodia says, “We have been supplying machinery to wineries and breweries in India on a turnkey basis. Architecture, machinery and maintenance, we take care of everything.  Our major customers include Indage Vintners, Sula Vineyards, and Flamingo, and wineries in the Wine Park.”

How has Economy Refrigerated Ltd. added value to the Indian wine industry?

“Some years ago, only those who could afford to go abroad and learn how to get started with a winery, were the ones who could begin a winery in India. Now, we make it possible for the newcomers to save on time and money on going abroad to learn and import machinery. We do it all, from building the winery to getting the appropriate machinery…”

“Farmers have switched to growing wine grapes, and now the government is giving perks by way of subsidies and tax holiday till 2021 (in Maharashtra), so the industry is looking forward and we are there to make it easy for Indian wineries,” she adds.

“We do the homework on comparing production technologies, appropriate machinery and raw materials to produce quality wines, and help Indian wineries concentrate better on marketing, branding, and sales. This does away with the expenses of time, effort and resources in going abroad to learn the finer nuances of wine production and winery processes.”

Where is the Indian wine industry heading?

“As of now, the industry is in trouble. Indage is in trouble. Most of the new wineries coming up to Maharashtra have contracts with Indage. They are in deep trouble.”

How does the sloth in the market affect Economy Refrigerated Ltd. ?

“Even though the market has been through a bad phase, the sloth is temporary thing. In a year’s time the industry should go up. It is stable now and hopefully it will go up. The domestic market will go up soon.”

What should the Indian wineries do to help the market grow?

The wineries should concentrate on strengthening their own brand image, marketing and sales. Dependence on bulk selling is not enough. Every winery should have their own image and niche’. It will attract consumers.

Which is your favourite Indian wines?

I like Renaissance 2007 Sauvignon Blanc very much with a grassy, green tint and much more capsicum.

Venki

Rojia Tiwari is working in editorial team with Ambrosia magazine, A monthly publication for the alcobev industry, Ambrosia focuses on various issues concerning wine, beer and spirit trade in India as well as abroad. The magazine also features exclusive interviews, special stories and latest product launches. She shares her view on current Indian winery market condition with indianwine.com

Since last few years, the Indian wine industry has grown leaps and bounce. The increasing consumer demand has helped the industry develop. With new technological innovations and international expertise, many wineries are trying to produce good quality wines as well. However, there is still a long way to go. We need Sommelier schools, technical know-how and a favourable government policy to support growth of the Indian wine industry.

Market Scenorio: The size of the Indian wine market is of 1.5 million cases. Though the per capita consumption is 9 ml, the industry is growing at 25 to 30 per cent and the future seems bright at present.

As we know that the Indian wine market is still at a nascent stage, it is very important to retain the demand. There is a double digit growth but sustaining that growth has become the biggest challenge at present. The recent economic turmoil has taken a toll on India’s oldest wine company Chateau Indage. And many other domestic wineries are suffering huge sells loss due to an increase in VAT. Few wine producers have also decided not to buy grapes for the next two years. As a result of which, the farmers in Nashik cultivating grapes for wineries have asked Maharashtra govt. to relax rules and make wine-making a cottage industry. In a welcoming move, the Karnataka govt. is considering giving wine as a non-alcoholic product status which will allow wines to be sold in any grocery with any other food and beverage items.

Future growth: It is difficult to predict anything at present. The industry is still fighting to bring in some changes and regularly updating itself. Few companies are constantly upgrading themselves and introducing latest technologies. Though the consumers are desperately looking for variety and good quality, the sky rocketing price of the imported wines and poor quality of many Indian wines have left them in doldrums. Unless quality is improved, there is not much scope for the Indian wine industry. 

Favourite wines: Very few Indian wines have taken interest in producing quality wines. However, wines of Indus, Reveilo, Chateau d’Ori and Nine Hills have great potential and they are my personal preferences.

Venki