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Posted: Tuesday, May 19 2009. 14:27

Comment : Will Maharashtra Emulate Marlborough

A recent report by the New Zealand Institute of Economic Research indicating that Marlborough’s wines contribute NZ$1.3 billion to the country can find a parallel in Maharashtra where white wines like Sauvignon Blanc have done well and the warm weather reds have good future, making it potentially a popular wine region internationally, comments Subhash Arora.

Marlborough’s wine industry is responsible for creating one fifth of the region’s economic activity, according to the report commissioned by the New Zealand Winegrowers and released recently.

Marlborough wines came into prominence only 25 years back-the industry found success in Sauvignon Blanc with Cloudy Bay making a deep international impression. This was just around the time when Champagne Indage brought out it sparkling wine from Narayangaon in Maharashtra. Sula, founded in 1999 produced a Sauvignon Blanc which has been well received internationally though it sells more of the sweeter and less expensive Chenin Blanc in the nascent market. Indeed, these are the two staple whites being fermented by every new kid on the block. One can find a great parallel between the two regions and many possibilities for the Indian state as well.

Marlborough provides jobs for close to 2,500 people directly, as well as supporting an additional 1,500 jobs within the wider community, an 18% of the workforce in this region.

The report also highlights the future benefits of the wine industry.

The NZIER report is the first in more than 12 years to look at the financial impact of the wine industry within Marlborough. In 1996 a study undertaken by Lincoln University’s Department of Economics and Marketing showed the wine industry contributed just NZ $70 million to the local economy and provided the equivalent of 448 full time jobs. The rate of growth since that report is nothing short of spectacular. Despite current tough economic times, the Kiwis are hopeful that the growth would continue.

“The rate the industry is growing, we would expect the contribution of the wine industry to the Marlborough region would increase in coming years as well.” Marlborough’s Mayor Alistair Sowman said. The report reconfirmed how vital viticulture was in this region, according to tizwine.com.

On a national scale the NZIER report shows the New Zealand wine industry contributes more than NZ$3.5 billon in gross output to New Zealand’s economy. Over the past 20 years wine exports have grown at a compound rate of 23.8% each year.

Indian wines- primarily from Maharashtra have grown at a compounded rate of around 25% during the last 10 years, the dip during the last year because of the global meltdown, notwithstanding. The export enquiries and the interest in Indian wines, is more prominent than ever.

‘It is very important that the Indian wine industry grows and the Indians should be proud of the wine made in India,’ says the legendry Angelo Gaja who imported Sula Sauvignon Blanc in 2003 for his import company. This was a big feather in their cap and helped Sula in their brand promotion and marketing strategy.

With over 50 active wineries in the state compared to just 5 at that time, Maharashtra producers, growers and the policy makers should be setting the sights high both in terms of quality, pricing, quality, marketing, quality and of course the government policies. It is equally important for all the stake holders that they must learn from the international quality and technology by competing with the imported wines and not hiding behind the protection of an archaic and myopic tax regime. 

Lagging only a few years behind the fast-expanding Marlborough, there is no reason that that Maharashtra cannot be the next dark horse.

       

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