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Delhi Wine Club

Posted: Wednesday, 14 July 2010 18:27

Chile Producers Excited about Indian Market

If the participation at the seminar organised by ProChile on the sideline of Grand Hyatt Catad’Or wine competition held in Santiago and the subsequent follow up meetings and mails are an indication, Chilean producers are very excited about entering the Indian wine market, writes Subhash Arora who had made a  presentation on the Indian wine industry.

The seminar which attracted an overflowing house of producers was organised by ProChile with experts from India, Vietnam and Indonesia presenting the picture of the market in their respective countries including the perception of Chilean wines and the suggestions for their entering or increasing the market share.

While sharing the demographics of the country including those pertaining to wine, Arora clarified the often misunderstood fact that not only India was a Federal nation where each state had independence to decide their alcohol consumption and tax policy, Explaining to the audience he said Article 47 of Indian Constitution actively recommended to the states  to implement prohibition except where the use of alcohol was considered good for health.

Ruing government’s failure to recognise the importance of wine as a healthy product when consumed in moderation, he said that one had to work within the realm of State laws, which slowly but surely were inching towards gradual liberalization with the government thawing a little.

Explaining the complex tax structure, Arora conceded that Chilean wines could well compete with the Indian wines if they offered value-for-money wines but at good quality. Warning the producers of selling cheap bulk wines, he gave them the mantra of 5Ps:

  1. Price- Focus on low prices but stay away from very cheap entry levels as decent, quaffable wines are the Indian wines are already available.
  2. Passion for India- It would help positively if one is positive towards India
  3. Partnership- One should look at the long term and seek partnerships of any form.
  4. Personal Appearance-
  5. Participation in wine shows, festivals and sending samples to various competitions

In addition, he advised the attending producers to also use the Sixth Sense-by securing

The seminar was also an eye opener in that a few producers had hairy tales to tell about some Indian importers. There are shmucks and shysters in every society and India may not be an exception. Giving details on this newsletter would be like printing a four-letter word –which is not the policy at delWine. But Arora did advise the audience to be careful and secure the payments.

Talking of importers, Arora emphasized that finding the right importer for wine was a big problem since there were so few of them and most of them had an importer already in place;

In his concluding remarks Arora reassured the audience that India continues to be a strong and developing wine market with roadblocks on the way and was expected to smoothen out within the next few years.

The seminar was found so successful, topical and useful that Arora was requested to present another similar one to an audience in a few days.



Pieter Louw Says:

Dear Subhash, It would be very interesting to to get info on India, Vietnam and Indonesian markets presented at conference. Who would be the correct institution and person to contact in this regard.

Posted @ July 19, 2010 11:33


Christian Blanco Says:

Dear Cavaliere. I am the Export Manager with Viña Casas del Bosque.We are very happy with the results we just obtained in the Catad’Or Hyatt with our Sauvignon Blanc’s and Pinot Noir’s. This is the confirmation of the results we have been getting consistently for the past years. I am currently looking for a business partner to establish a long term business relation in India to develop our brand. I completely trust in the potential and growth of the market and, even though it may not be an important wine market for Chile in terms of volumes, the projections are huge!!!

I have contacted some companies already. It would be great if you could give me your feedback and comments about the market and tell me what do you think would be a good approach. Thank you in advance for your consideration.  Saludos cordiales,
Christian Blanco R., Export Manager - Europe, Asia- Viña Casas del Bosque, C H I L E

Posted @ July 15, 2010 11:35


Sebastian Pollak Says:

Dear Subhash, I attended last Friday's Seminar at the Hyatt and found very good your exposition.

Unfortunately I had to run after the seminar as I would have liked to have a word with you.I was present with one of my wines in the IIWF Fair, Mumbai in March 2009 and had a great response from everyone who sampled it. Last year I went to New Delhi to meet the importer I have been having talks with since more than a year now, and could know more about the market and its current potential.

One of the issues I don't have very clear, and would really appreciate if you could enlighten me, is how the retail wine sales is developing? As I thought that, due mainly to the high cost of wine because of the high taxes, and the market target group wine is still oriented. No one buys wine on retail, but the current volume comes from the on-trade, being hotels and restaurants, and the "grey-market" being the people buying directly to the importers for home consumption or home parties and celebrations. Also, following one of the statements you said during your exposition, despite the many new importers that are appearing in the market, if you are not with one of the top 5-10 importers it's not worth to enter. Is that so? Sebastian Pollak, Export Manager VCG S.A. T.: + 56 2 750 4000

Posted @ July 15, 2010 11:30


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