'Comprehensive Study of the Indian Wine Market' is a 37 page document supported by a 41-page Reference Guide Section detailing the Indian drinking culture, demographics, Geography, Import procedures, Supply chain, wine pricing structure, state laws, Foreign Trade Agreements and several other issues related to the Indian wine market and marketing wines in India.
Expected to be quoted very highly, it clocks the growth of the Indian wine market at a conservative 20-25% and concludes that there is a strong market potential for the California State producers who represent 95% of the US export market.
The study was instituted by the Wine Institute late last year and was conducted by Washington-based JBC International, a consulting firm. The objective was to help the California wine producers to understand the Indian market and psyche to enable then to penetrate the market under the existing conditions.
A team sent to India visited Delhi, Mumbai, Bangalore, and Goa meeting importers, retailers, hoteliers, government officials and those related with the wine trade- including the Indian Wine Academy and the Delhi Wine Club. The report draws and recognises significantly from the published portion of the respective websites.
The study has been designed to serve as a guide for wineries and producers intending to sell in India. Current and projected market overview of the consumption, production, government regulations, state laws including labelling etc have been lucidly explained. The Indian Constitution would be helpful to understand why India is a Paradox.
The study has however limitations- insofar as the data accuracy is concerned. Admits Jim Gore, lead author of the study, 'wineries, importers and retail shops are privately owned and were wary of sharing their proprietary information on sales related figures. Despite the study and the research we made in the US before coming to India, the limitations regarding the accuracy of the data remain to an extent, an issue.'
While being optimistic about India as the emerging market and the opportunity it provides, it does warn the US producers about the protectionist regime of alcohol control and taxation, an underdeveloped supply and distribution chain that threatens the product integrity and a culture that has not been wine-oriented so far.
Although there has been a significant change in the economy since the report was signed off on August 21- there is a sudden recession and the Rupee which was selling for less than Rs. 40 to a dollar has devalued around 25% to go to Rs. 50 to a dollar-making the imports from the US that much more expensive, the meticulous details of the factors involved in wine trade within the Indian system make it a handy tool for anyone interested in the wine industry-within India or overseas.
November 3, 2008
STUDY ( .pdf) , STUDY ( .zip) REFERENCE GUIDE ( .pdf) , REFERENCE GUIDE ( .zip)