Vin-vin idea

“We do not have a history of wine-drinking in this country,” rues Kapil Grover, the owner of Grover Zampa Vineyards, one of the country’s oldest winemakers. The fact that “India is a one-million-cases (12 bottles to a case) market, whereas China is 200-million-cases” stares him in the face.

Grappling with the uphill task of growing a market where annual per capita wine consumption is less than 10ml, in contrast to the nearly four litres consumed per capita globally, and 60 litres in France and 70 litres in Italy, Grover decided to do the next best thing — export his wines to France.

“We decided to take the bull by the horns,” he chuckles, about his decision to take Indian wines to a country that is a byword for wine and wine connoisseurs, and rich with fine-wine regions like Bordeaux and Champagne.

But in this audacious move, Grover has company. Market leader Sula Vineyards too has a presence in France. Although its wines are currently sold mainly to restaurants in the Paris area, Founder and CEO Rajeev Samant says “there is keen interest from a couple of the biggest retailers, so it’s only a matter of time”.

The company’s global brand ambassador and head of international business Cecilia Oldne lists the Sula range launched in France last year, including Sauvignon Blanc, Chenin Blanc, Zinfandel Rosé, Red Zinfandel, Shiraz, Dindori Reserve Shiraz and Viognier.

“We work with two different importers — Richard and Global Food Trading — for different wines in different channels (hotels, restaurants and catering companies)... in France we are already at 1,000 cases, and Paris makes up for 80 per cent of our sales,” says Oldne.

The company exports to 30 countries, while back home in India it commands 65 per cent of the wine market and competes with more than 90 winemakers. New entrant Good Drop Wine Cellars is owned by Ashwin Rodrigues, who is more than aware that Sula has a huge lead and its nearest competitors command just 1/5th of its market share. “Grover Zampa is neck-to-neck with Fratelli Wines and Charosa Vineyards in the Indian market,” he says.

He, however, blames unhealthy competition and undercutting for destabilising the domestic wine industry. “We are going through bad times. No one is making money in India. There is an oversupply of premium wines here, and margins are almost slim or non-existent. Supply has exceeded demand, leading to many Indian wineries seeking foreign shores,” he says.

Although Fratelli has been exporting to five countries, chiefly the UK and the US, France is a market it has not tapped yet, says its marketing head, Abhishek Haryson. As for Charosa, COO Parag Kamat says the two-year-old company wants to first establish itself in the Indian market before venturing overseas.

According to the global alcoholic beverage market tracker IWSR, the French market is the second largest for wine consumption, at about 300 million cases a year, with local brands dominating. A mere 0.005 per cent of this market toasts Indian wines.

But change is certainly in the air. As Sula’s Oldne explains, “Since ‘The 1976 Paris Tasting’ the perception of winemakers and wine influencers has changed. French consumers are more open to wines from other regions. We see this as an opportunity.”

Handy French connection

For Grover Vineyards, it was not easy breaking into the French market. This despite the fact that in 1996, leading French champagne house Veuve Clicquot Ponsardin took a minority stake in the Indian winery. Part of the LVMH Group, a world leader in luxury goods, the French vintner extended technical support to Grover Vineyards through its wineries in Australia and New Zealand. This helped Grover take its wines to France way back in 2001. That 14-year-old decision is bearing sweet fruit now. The renowned three Michelin star restaurant L’Arpege currently serves Grover Zampa’s signature wines, making it the first Indian wine to appear at a three Michelin star facility.

The brand’s Sauvignon Blanc and La Reserve Red, both winners at Decanter Asia 2014, were up next. “The restaurant agreed to serve two of our most delectable offerings. With this, we are the only Indian company to have a wine list in a French restaurant,” says a proud Grover.

“France is a 12,000-13,000-cases-a-year market for Indian wines. It is the wine world’s beacon, so to say, and to get noticed in such a place is a huge high for us,” he adds.

He was greatly helped in this by Ravi Viswanathan, “an investor, guide and mentor”. Grover recalls the three to four months of intense work put in by Viswanathan to get the wines accepted at the French restaurant.

Wine connoisseur and the largest private investor in wine in India, Viswanathan holds a minority stake in Grover Zampa Vineyards along with Reliance Capital. Last year he acquired 30 per cent stake in Sula Vineyards along with the Anil Ambani-owned Reliance Capital. Grover credits Viswanathan, who also runs a private equity fund in Singapore, for highlighting the synergy between French cuisine and Indian wine.

Sula’s Oldne, too, avers that in “an epicurean culture like France, there is a healthy respect for Indian fusion and Creole cuisine, and that is where Sula has found a platform to truly shine on. It is encouraging to see the response to our wines in France.”

She adds that in keeping with global wine consuming trends, red wines make up 60 per cent of Sula’s exports. “Our Rasa Shiraz has won a silver medal in Syrah du Monde twice — in 2011 and 2014. Having said that, our Sauvignon Blanc and Dindori Viognier are much appreciated in France and have also won international awards.”

Grover observes that at most restaurants it has become de rigueur to pair Indian wine with French food. “France is predominantly a red wine market. Rosé is second, though white wine is picking up. Viswanathan was the one to point out at the L’Arpege that our red wine goes very well with grilled fish or, for that matter, any European-style fish.”

The La Reserve red wine is produced from Grover’s Cabernet Sauvignon and Shiraz grapes. It is made in the best French winemaking traditions of Bordeaux, and aged in French oak barrels, he says.

Apart from the presence at L’Arpege, the company has a gallery in Paris that exclusively serves its wines.

British thirst

Sula’s Oldne sees the rising profile of Indian wines as an extension of the country’s growing influence on the global stage, whether it’s “Indian cuisine, culture, yoga, tourism, spirituality and so on”. CEO Samant, a Stanford University graduate who worked briefly for Oracle in Silicon Valley, says, “Ours are the only Indian wines currently listed with Marks & Spencer, a prestigious food retailer in the UK.”

Across the channel from France, Grover Zampa too began marketing its premium wines in Britain last year, in collaboration with yesteryear Indian tennis star Vijay Amritraj.

The Vijay Amritraj Reserve Collection of white and red wines was launched at Wimbledon. Amritraj is a good friend, says Grover, and he had been in discussion with the firm for over five years “before deciding to be its brand ambassador. The ₹1,400 (a bottle) wine has received rave reviews from wine critics.”

Fratelli’s Haryson says it’s easy to export to the UK market as Indian wines tend to go well with British food.

Grover Zampa Vineyards currently exports to 18 countries, with France, Japan and the UK at the top three. “In Japan, we do 6,000 cases. In the UK, we are currently at just 4,000 cases, though we should be doing at least 30,000, given the immensely beautiful pairing of our wines with Indian food,” says Grover.

The company entered the US market four years ago. “The US market, where we do 3,000 cases, is very different. Each state has a different rule and its own tax and regulations. This also adds to the end-price for the consumer. Plus, we need a whole container (approximately 800 cases) to make our presence felt in each state,” says Grover. Australia, Singapore, Hong Kong and Maldives too have emerged as his key markets. “We do 700 cases in Australia. We sold one container, and now have a second container waiting to be shipped. This year, we will target new markets, especially since my daughter Karishma has decided to explore new territories,” he adds.

Maturing GeNext

Kapil Grover’s eldest daughter, Karishma has graduated in viticulture and enology from the University of California. She was among the first to champion the Viognier, a white wine grape in India, owing to its ‘fruit expressiveness’. She was also instrumental in introducing art collections with designer labels for Grover Wine. Incidentally, Viognier is the only permitted grape for the French wine Condrieu in the Rhone Valley, in Southern France. It is now grown in India.

Karishma is proud of the fact that the grapes for the company’s Sauvignon Blanc and Shiraz wines are grown at Nandi Hills in Karnataka. “Our philosophy is rather old-world. We make wine the old way, rather than the new-age way. This is one of the chief reasons for our acceptance in the French market,” she adds.

Good Drop Wine Cellars’ Rodrigues says that under Karishma’s leadership for nearly three years now, and aided by a wine consultant from France, Michel Rolland, Grover Zampa Vineyards has grown tremendously.

Rolland has been their consultant for 20 years, says Karishma, crediting him with bringing the best French winemaking traditions. “He brings in a style and balance to the wines,” she says.

Quality issues

Sounding a cautionary note, Rodrigues says that unlike Charosa and Fratelli, which “make good quality wines as they have their own vineyards”, Grover is mostly dependent on farmer contracts, leading to less control over quality.” Fratelli’s Haryson says his company owns 240 acres and wants to expand further.

Charosa Vineyards owns 230 acres, of which 81 acres are cultivated, and another 80 acres have been developed. Its vineyards are located 55km from Nasik, at Dindori. Says its COO Kamat, “The quality of grapes decides the wine. Grover only has contract farming, which affects the overall quality. Many European countries are finicky about traditional production. They would rather make wines in the vineyard, than in the winery, where chemicals can be added to the wine.”

Grover Vineyards was established in 1988 on 40 acres at the foot of the Nandi Hills, on the outskirts of Bengaluru. Today, the company owns vineyards in Nashik, Maharashtra, too.

“We have 350-400 farmlands under lease at Nandi. We have a five-acre winery in Bangalore, and a 150-acre winery in Nashik, where we also have seven acres of vineyard,” says Grover, adding that the firm’s iconic La Reserve red wine, launched in 1998 in India, came from its own vineyard.

The natural protection of the Nandi Hills and the terraced slopes of Nashik offer a good climate, fertile soil and perfect conditions for vine growing.

Bubbling market

With wine consumption expected to reach 2.1 million cases in India by 2017, an increase of 73 per cent from 2013, according to wine festival organiser Vinexpo, hopes are riding high.

In 2012, Grover Vineyards merged with Nashik-based Vallee de Vin to form Grover Zampa Vineyards.

Vallee de Vin was floated in 2006 by liquor industry veterans Deepak Roy, executive vice-chairman, Allied Blenders and Distillers; and Ravi Jain, a former managing director of Shaw Wallace and Company.

Kapil Grover then decided to create a complete portfolio of wines: from sparkling and still wines to port wines. The idea was to offer quality at different price points.

“We have grown by 100 per cent in the two years since the two companies merged. This financial year, we hope to have two lakh cases, including port wine. Of this, 25,000 cases would be exported,” says Grover.

Outlining the value brought by the merger with Vallee de Vin, Rodrigues, says, “Earlier, with little marketing and a solo effort, sales had slumped badly. Now, though Grover does not have its own vineyards, sales and quality have improved. They have also got fresh investment.”

Sula’s Oldne adds that “Grover is an Indian brand that has a strong French connection and has been doing some great work in promoting Indian wines in France.”

Dwelling on his 23-year-old company, Grover says he invested ₹25 crore of his own money to bring the company to its current standing. “Three years ago, we brought in investors who doubled my personal investment,” he says, adding that his daughter will now carry the baton, given her marketing skills, while he would be more content to raise a toast to her success.

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