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Apparently, The
Hindu believes that India guzzles Champagne and this has prompted
the region to amend a law, unchanged since 1927. The Institut National
de l'Origine et de la Qualiti plans to redraw the boundaries of the famous
Champagne-Ardenne region within 3 days, by March 13, expanding the 33,500-hectare
region to include up to 40 more villages.
During the recent Christmas festivities, wine merchants
in Britain reportedly faced a shortage in supplies from France due to
high demand from India and Russia.
About 150 million bottles were sold in 190 countries
last year and 188 million bottles were drunk in France. Similar figures
were reported by delWine
earlier.
We have not been able to confirm the figures mentioned
over the last few months in this report among many others, that sales
of Champagne in India had soared 129 per cent in 2006. The figures for
2007, released by CIVC a few days ago place India at less than strong,
with imports of 200,000-300,000 bottles.
It would be reasonable to assume the figure of 240,000
bottles (20,000 cases-12 bottles). This is based on Moet Hennessey's estimate
of 25,000 case imports which is growing at 25% a year. Their figure is
countered by an estimate of 12000-20,000 cases of 12 bottles, by other
importers. Based on the comments by CIVC and the estimates for 2007, the
imports would have been 25,000 cases in 2006 and only 11,000 cases (132,000)
in 2005!
Does this miniscule level of import justify adding 40
more villages to the current appellation? And using India as the crutch?
Even if we assume explosive growth during the next 3-5 years when the
production would start coming out of these new areas, India is hardly
the market that would absorb the increase.
Undoubtedly, Indians are taking to this top-end sparkler
increasingly. But with 150% import duty and its biggest market, Maharashtra
increasing the excise duty to 200% and the Delhi government girdling up
to crack the necks of fine wine imports by levying an excise duty @25%
on the MRP, the consumption of champagne may actually decline this year...
and the next.
…unless our 4 billionaires from India, who just
joined the ranks of the eight richest people in the world and all our
other 49 on Forbes recently announced list of billionaires choose to throw
a celebratory party across the nation… and everybody is invited.
- Subhash Arora
PS- Undoubtedly, the continuously climbing exports
and higher and more remunerative prices have put Champagne in a strait
jacket and they need to expand the area of production, but let India not
be the reason or excuse for doing so. Despite it being a delicious drink,
and the continued increase in the people who can afford to drink it and
despite a focused thrust in the hotel industry where it is offered to
them at the throwaway prices for drink-till-you-drop Sunday bunches, it
would be too optimistic to expect a 3-figure percent increase in consumption
during the next few years- Arora
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