The Hindu Business Line : Corporate biggies keen to enter wine retailing

Already, it is being touted as a ‘fashion drink’, good for the health and is gaining acceptability socially and among both sexes, feels Mr Sumedh Singh of Finewinesnmore.

Healthy growth

While volumes are still low, both for domestic and imported labels, the boom in the hospitality sector, urban affluence and the retail push are contributing to a healthy 20-30 per cent growth, he told Business Line here.

The market of over a million cases of different labels in 2007-08, clearly shows an impressive growth in the production capacities and numbers of domestic winemakers. About 60 Indian companies make different label wines and an equal number are ready with plans to enter the market, Mr Singh said.

Large corporates like Godrej, Reliance, Aditya Birla Group and Metro have evinced keen interest to enter the retail business of wines. States like Karnataka, Delhi, Haryana and Maharashtra allow retail sales as of now, he explained.

While domestic brands are reaching greater geography, international brands are facing a tough time due to the price differential in various States, which have their own Policy and duty structure, he said.

France, Italy and Australia are the top three companies, from where the Mumbai-based Finewinesnmore imports its 140 labels of wines, Mr Singh said.

With growth in Europe, where most of the major wine makers are located, having saturated, a good proportion of them are seeking to enter promising markets like India, he said.

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