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South African Giant ready to Conquer India

Posted: Thursday, 19 December 2013 18:26

South African Giant ready to Conquer India

Dec 19: If the reports by the agencies are taken at their face value, one of the biggest companies of South Africa, KWV is all set to enter India through a relatively unknown importer and grab a major share of the South African market with a total sales of 30,000 cases within three years that could give a major fillip to the South African wines in India

In a Release, a hitherto unknown wine importer Kristal Spirits India (KSIPL), has announced today a marketing and distribution tie-up with the South African wine major. According to the release, these KWV wines will be available in India by December-end. "As part of this association, Kristal Spirits would launch KWV Classic and KWV Sparkling in Mumbai, Delhi, Bangalore and Kolkata by the end of December 2013," KSIPL- says the release, according to ET.

KSIPL has declared its plans to sell 30,000 cases of KVW wine within the first 3 years of the brand's launch. This is perhaps more than 3-4 times the number of South African wines being imported currently; the announced target, if achieved, would be a commendable performance and highly creditable. The importers are hopeful because they say, ‘with changing tastes, the wine market in India is growing at 13 percent annually, faster than that of any other alcoholic beverage.’ They are thus counting on this growth and the aggressive strategy for the stellar performance.

The report also implies that the Delhi-based company is primarily a spirits-based company. “Through our association with KWV Wines, we aim to bring in a whole new exotic experience for India’s growing appetite for everything global,” Kristal Spirits Managing Director, Arun Aditya, reportedly said. KWV Wines APAC Director Esmari Kift said: “We are delighted to partner with Kristal Spirits and bring KWV Wines to India, which is one of the finest to come out of our vineyards.” No details have been given on the labels.

KWV is one of the leading wine and spirits producers in South Africa - it was founded as a winemaking co-operative in January 1918 by wine makers from the Western Cape. The name “Koöperatieve Wijnbouwers Vereniging van Zuid-Afrika” is Afrikaans for "Co-operative Winemakers' Society of South Africa", but after apartheid was over in 1990, it became an independent winery and today it represents a well-known global wine and spirits brand producing a large portfolio of products. 

Global Tax Free Traders has been the known importer of KWV for several years. The management did not respond to phone calls but the excise records still show Merlot and Cabernet Sauvignon as the two wines registered by Global - and the only KWV wines as on date.

It would also be miraculous for the two parties signing the deal and getting the registration done in such a short time-unless the process had been initiated and the registration process completed.

Subhash Arora

While we wish the importer and the producer good luck in achieving what seems to be a very difficult and ambitious target, one cannot underestimate anyone’s marketing capability or reach. On hopes they are serious and capable and this is not the usual marketing hype; such reports are harmful when they display false optimism just to get a marketing advantage in the short term. We shall keep a watch on this development and inform our views periodically- editor

Tags: KWV, Kristal Spirits India, South African wines



Subhash Arora Says:

Hi Chris. I am glad someone noticed it! People are so shameless and used to making such tall claims through the print media! I noticed the report in Economic Times but I neither know the importer nor anyone I asked, seemed to have heard of them. So rather than writing Blog in which case I would have reacted like you have, I just made it as a report (a bit in my tongue-in-cheek style) giving the due journalistic credit and left it to people like you to notice the anomaly. I have also penciled in the news report and will be commenting about it when some more information about performance is available. It is a pity the print media is so gullible and naïve so far as wine is concerned. But that is their business-not mine. I wish they were slightly more inquisitive rather than printing everything fed to them- I guess for a price?? Happy New Year to you and Aruna. Subhash

Posted @ December 27, 2013 17:10


Chris Pohl Says:

Dear Subhash, I could not help myself but to mail my comment to you. You know the India Wine Scenario better than anyone I know; as you know my links to the South Africa & India Wine Business I fail to see how 30000 x 9ltr cases of wine from KWV would be sold within 3 Years here in India. A huge capital sum has to be spend just on registration fees in the selected regions alone and b) why would anyone register any products when the annual registration is between 4 to seven month up for renewal - I just don't see it. I truly wish them all the success as I would look forward to be able to purchase some Roodeberg or the very much valued Cathedral Cellars Wines. Maybe we will also see the excellent KWV Brandies on the shelves - I just hope that those ambitious Plans to add 30000 cases of wine imports to the currently 39600 cases imported from Argentina, Spain, NZ, Austria, Portugal, Germany, and South Africa COMBINED!!! Makes you think - doesn't it. In closing just one Question - WHY stating such numbers at all. I have kept - as a do with all your newsletters, this one in particular and set my reminder to read it again in 2 years - let us see what will happen and I just hope, that I am so very wrong and that they are right. Best Regards Chris

Posted @ December 26, 2013 14:19


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