We keep complaining about how difficult it is to give numbers for the Indian wine market. If you talk to the distributors, they keep beating their chest; if you talk to five-star hotels and restaurants, they engage in marketing hype -- the figures they give are completely at variance with what the distributors have to offer.

Euromonitor International's report on the Indian alcobev industry in 2005 has just been released and we would go by the agency's figures. Wine sales by volume grew by 17% in 2005, keeping up with the pace of growth seen in 2004 to reach 4.6 million litres. The growth percentage, clearly, is lower than what the domestic industry has to offer. In value terms, wine sales notched up just under Rs 4.5 billion, which represented an increase of almost 20% in current terms on the previous year.

"Despite the rapid growth," according to the report, "wine sales continued to represent a minor proportion of total alcoholic beverages consumption in India " and the per capita consumption is " barely measurable."

Compared to wine, the volume of the spirits market was 910 million litres in 2005, the year that will be remembered for "one of the largest shake-ups," with the UB Group buying out Shaw Wallace & Co. UB Group paid Rs13 billion for the Chabbria family's majority holding in Shaw Wallace.

"The timing of the move, though, was perfect with the diminishing interest of the Chabbria family in the Shaw Wallace business," says the report. "It was also key that UB Group bought the business rather than letting it go into the hands of a domestic or multinational competitor, as that would have meant further competition."

The report also takes note of two key developments in 2005. One was the revision by the India Government of its foreign direct investment rules and the reduction of duty on molasses. The other was "the premiumisation evident in vodka with increasing presence of international brands."