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December 2008 - Posts
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The government may allow departmental stores to sell wines after they acquire licences from respective state governments. “We are
working towards easing regulation on wine production and consumption in the country. Availability of wine would be the first step in this direction.
The government is willing to spread wine culture among people and promote vineyards in the country,” said an official in the ministry of food processing
, who wished not to be named. More: Economic Times
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The global economic slowdown and the Mumbai terror attacks have adversely impacted the Indian hospitality sector and the year-end wine
sale. As most hotels are downplaying their year-end celebrations, many winemakers are observing a drop in sales, which usually rise during this season.
“Our wine sales are down by about 25%,” said United Spirits chief winemaker Abhay Kewadkar. “Some of the hotels are just not buying as a lot of parties have been called off and also the occupancy levels are low,” he added.
Hotels across the metros have registered more than 40% drop in occupancies in this peak season. Even the hotels which are planning New Year celebrations do not expect an overwhelming response. “We are expecting a low-key response this year,” said The Lalit Ashok, Bangalore, general manager Harinder Singh.
“Apart from cancellations from the hospitality sector, our sales in the corporate gifting segment have also seen a drop of about 90%,” Ms Nanjundaiah said. “Most of the clients we contacted for corporate gifting said they were not interested in spending so much on wine this year.”
Another factor that is negatively impacting the sales of the wine industry is the recent steep increase in import duties in two of the most important wine markets of the country, Karnataka and Maharashtra.
More: Economic Times
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Dharti Desai, chief executive officer of Finewnesmore has been lucky. She’s one of those who find a vocation in their passions. When the roving wine-lover decided to set up her own firm Finewinesnmore two years back, it was a dream job for her. She travels constantly across the globe to gain a first-hand experience of wine-making. Finewinesmore currently has 149 wines in its portfolio.
Desai, a 41-year-old single mother, and former New York-resident says she was prompted to set up the firm when she couldn’t find the wine of her choice every time she visited India.
Finewinesmore posted a turnover of Rs 5.5 crore last fiscal, which Desai hopes will double this year. “However, our top line could be impacted by around 15% due to the slowdown,” she adds.
Also, the country’s wine importers are pinched by exorbitant duties. They have to pay a customs duty of 162%. Moreover, in Maharashtra, there’s an excise duty of 200% of the manufacturing cost on imported wines.
Despite these hiccups, Desai is undeterred with her expansion plans.
“We want to be present in 20 cities by next March. Currently, we have a presence in 15 cities,” she declares. Finewinesnmore has set aside Rs 10-15 crore to set up its concept bars in Mumbai and New Delhi by the middle of next year. “We also plan to make wines, especially in the North, since the climate is suitable compared with other regions,” she says.
More: DNA
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For Abhay Kewadkar,
wine is both a passion and an investment. He’s has gone about his
obsession systematically, hiring a négociant (wine merchant) in
France. Whenever he buys a Bordeaux, the négociant keeps it for him
till he returns to France to sell it. “I invest in what I’d like to
drink,” he says. “Around 80 per cent of my wines are long term
investments.”
While his collection includes the first growth cru wines,
there are a sizeable number of third-fifth growth wines as well as top
Sauternes wines. “Long term investment is between five and ten years,
especially when purchase is en-primeur. It’s booked six months after harvest.
Then the wine remains in barrels for two years. Harvest to bottling is
about three years, after which prices escalate.”
All this became
possible because of his regular visits to France. That’s how small,
family-owned, boutique wineries are discovered by visitors who come to
sample their sublimely flavoured vintages. Collectors like Abhay also
drop by to pick up what could become a rare vintage in times to come.
“Normally, investment wines start at 50 Euro per bottle en-primeur and, depending on year, climate and quality of harvest; prices could double or triple in good years. In exceptional years like 2000, it could even go up to almost four times.” But the passion is not restricted to French wines. Abhay’s portfolio includes fine Italian wines as well. All in all, it’s a fine balance between passion and profit. More: Express Buzz
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Wine manufacturers in Maharashtra, Chateau d'Ori, Vallee de Vin have come together to move the court in order to challenge a State Excise Department notice demanding payment of the entire dues of excise duty which had been waived off for 10 years since 2001 as per a Government policy.
The Maharashtra Government had announced the policy in 2001 with excise holiday for 10 years to promote wine cultivation, which would prove to be beneficial to farmers. However, following a Public Interest Litigation (PIL) in the Nagpur court challenging the decision in September, the court had asked the State Exercise Department to collect the excise duty dues since 2001 from the wine producers of the state.
More: Hospitality Biz
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Italian wines have long been the flavour of the Indian market. Now, newer winemakers from that country are looking to make an appearance here. Brands such as Caviro, Cavit and Cantine that you may not quite have heard of are scouting for distributors and should be available soon, says sommelier and consultant Magandeep Singh. The wine-drinking segment has been swelling over the last few years and thus many foreign brands are trying to get a foothold in the Indian market.
Spanish winemaker Torres is also expanding its presence in the country. The wines are now available in retail stores and are premium-priced. A bottle would cost close to Rs 7,500 (sparkling, retail price).
But when it comes to wines, you must not miss out on some new Indian labels, now uncorking their first vintages. Chateau d’ Ori, for instance, has its first vintage, 2007, that was recently awarded at the prestigious Indian Wine Challenge event. Dubbed, the “mini-Bordeaux of India”, here is wine which may be more value-for- money.
More: Business Standard
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Now, when the economy is in slowdown mode, it seems to be boom time for Indian wine. A look-in at a wine challenge hosted by Sula where wine gurus test what Nasik has to offer.
At Sula, Rajeev spoke about innovating at a time when demand is slowing. In the next one week, Sula, India’s best known wine producer, will uncork a new bottle. It is an entry-level wine, both red and white, most likely called Samara which will be priced at Rs. 150 a bottle. This will be one of the cheapest wines ever produced and sold in India, even cheaper than the earlier entry-level wine from Sula, Madeira.
The new cheap wine, hopes Samant, will offset some of the losses from falling demand of his top-end sparklings and oaky reds. The slowdown also opens up another major opportunity for him — to acquire capacity. In the last few years, several small players have rushed in to set up vineyards in Nasik. Some supply to large vineyards like Sula. The slowdown means the market for many of these players would be wiped out and big names like Sula, who have been eyeing acquisitions, will pick up some vineyards which will greatly boost capacity and will, in all probability, come cheap.
Wines of Nasik: Aamchi wines
The consensus seemed to be that India makes decent whites, some great reds like Shiraz and the dessert wine rocks. But as usual, there are tons of clowns in Nasik who want to make Merlot. Now Merlot is not something that does well in the Nasik conditions, it is just, said the experts, something that we do well and yet, one joker from a local hotel insisted that his guests love Merlot! This of course had the foreigners shaking their heads in amazement.
More: The Hindu
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