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US Report on Indian Market Released
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Delhi Wine Club

Posted: Tuesday, November 04 2008. 09:45

US Report on Indian Market Released

Much awaited report on the study of the Indian wine market, has been finally released by the Wine Institute of California. Perhaps, a first comprehensive report of its kind, it is first being published by the Indian Wine Academy.

'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.

Subhash Arora

November 3, 2008

STUDY ( .pdf) , STUDY ( .zip)                      REFERENCE GUIDE ( .pdf) ,  REFERENCE GUIDE ( .zip)




Posted By : Harshal Shah

January 02, 2009 11:03

To have limitations insofar as accuracy of data takes away some of the value of this report. This is a presentation of the regulatory environment in which wine is sold in India.


Posted By : Enver Buys

December 01, 2008 21:43

We in SA have long tradition of quality wines. We've identified India has a sophisticated wine market that wold enjoy our superb range of Herbal Wines.


Posted By : Jardine Omar

November 29, 2008 11:56

Well done, once again, to the Indian Wine Academy! South African High Commission (New Delhi)


Posted By : Avininder Singh

November 05, 2008 13:34

I have spent a good part of the last two days going over the Report and the thoroughness with which it has been compiled is very laudable. Very interesting reading indeed. Bringing this Report to us is yet another feather in the cap of The Indian Wine Academy - Congratulations!! Wine Lovers, the Wine Trade and the Hospitality Industry certainly know that you are the "GO TO" person whenever they need any help or assistance in the World of Wines.


Posted By : Dev Sahai

November 05, 2008 12:00

I truly appreciate your jounalistic prowess in as much as their immense literary as well as entrprenuerial value. I would call it a great example of skillfully putting experience and knowledge to the fore for public consumption and almost ushering a cultural change.


Posted By : Rex

November 05, 2008 11:40

I feel India is the new hot market and look forward too bringing our new brand line of Wines and Brazilian Rum. India must be smart and insist on reinvestment by new commerce in the country.


Posted By : Subhash Arora

November 05, 2008 10:40

It is downloadable from the site. Click the two buttons  STUDY  and REFERENCE GUIDE


Posted By : kunal

November 04, 2008 9:56

sir, i am indian student studying international master vintage in france. i am interested to read this report.will you please let me know from where can i source it. Kunal CHUG


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