Presentation to French Exhibitors

Indian Wine market: Trends,

Opportunities & Challenges
Vikram Achanta
2nd December 2008
Contents

• Trends

• Opportunity

• Conversion Barriers

• Recommendations
Positive Trends

• Growth of domestic wine industry

• Evolution of Indian consumer

• Hospitality industry growth

• Retail Re-evolution
Growth of Domestic Wine Industry

• 15+ active producers contributing to around a

million plus cases

• Major producers expanding capacities

• Large players investing in the market – Pernod

Ricard, UB Group, Diageo, Moet Hennessy

• Indian wine companies exporting wine and also

making global acquisitions
Growth of Domestic Wine Industry
– India Wine Challenge 2008

• 2nd Edition

• 501 entries from 16 countries with 76 entries

from India

• Mix of International and Indian jury

• Indian wines – 3 silver medals / 5 other

medals
Growth of Domestic Wine
Industry – Pune Wine Festival
example
Evolution of Indian consumer
Evolution of Indian consumer

• Evolution over a 10 year period

• Growth of wine societies and wine clubs

• Spread into smaller cities also – Pune,

Chandigarh, etc.
Retail re-evolution

• Liberalized licensing norms

• Emergence of modern trade

• Liquor shop chains emerging

• Modernization of independent retail shops and

state controlled retail
Retail re-evolution – Chandigarh
example
Retail Re-evolution - Travel Retail
Growth
•Airport modernization and establishment of new
international airports

•Dissolution of public sector monopoly and entry of

international operators

•Rapid growth in passenger traffic

•Intense focus by liquor industry on this segment

 Hospitality Industry Growth

• Growth of food and beverage outlets

– High quality free standing outlets
– Growth into tier 2 and tier 3 towns
– Emergence of specialty outlets
– Manpower quality improvement

• Wine Bars emergence with decreased license fees

– Entry of wine companies – Indage, Sula, UB
Contents

• Trends

• Opportunity

• Conversion Barriers

• Recommendations
Opportunity

Beer Wine Spirits

Per Capita 700 9

(ml)
Cases 130 1.25 125
(Million)
Size (USD) ~1 Billion ~ 100 million ~ 7 Billion

Growth ~10% ~20% Varies

Contents

• Trends

• Opportunity

• Conversion Barriers

• Recommendations
Conversion Barriers

• Wine is not for me

• Wine = Celebrations only

• I don’t understand wine / can’t pronounce

names / read the labels

• How do I Open the bottle

Contents

• Trends

• Opportunity

• Conversion Barriers

• Recommendations
Recommendations

• Make Wine Accessible

• Catch them young

• Focus on education