‘We are working to demystify wine'

Wine consumption in India, at about 2 million cases per annum, accounts for just 0.3 per cent of the country's alcohol beverage industry. But the industry is raising a toast to positive growth of wine consumption, at an estimated 25 per cent CAGR in the last five years.

Mr Abhay Kewadkar, Business Head (Wines) & Chief Wine Maker, United Spirits Ltd, spoke to Business Line on the industry, plans to expand wine consumption in the tier-II and tier-III markets and the company's flagship brand Four Seasons:

Wine has the lowest per capita consumption in the country compared to other spirits. What are the inhibiting factors?

It is the end consumer price, which is due to high taxes, duties and registration charges across States.

In the global market, good quality varietal wines can start at $4 per bottle while in India it is at $8 per bottle. With purchase parity comparison, the impact is even more. And, once a bottle of wine is opened for the evening, your expenses are committed unlike a bottle of spirits which has a much longer shelf life even after it's opened.

Worldwide, the price of wine is much lower than spirits. In India, bad storage conditions add to the problem. In spite of all these issues, there have been enough triggers and we have seen the wine market growing at 40 per cent year on year on a cumulative basis. The Chinese wine market that was three million cases about 15 years ago is at 100-plus million cases per year. China has not been a traditional wine market like India. It is believed that India will follow the Chinese example.

How is United Spirits expanding the wine market in India?

We have definite plans to expand our portfolio in the years ahead. Over the years, wine consumption has remained metro-centric in India and in the consumer's mind has a snob appeal. We are, therefore, working towards educating the consumer to demystify wine as a category.

The distribution depth and width of the UB Group has been instrumental in making our range of wines available in Tier II and Tier III cities as well. This has helped expand the pie.

How is white wine faring vis-a-vis red wine?

Globally, red wine sales are about 50 per cent of the total volume, white wines 35 per cent to 40 per cent, rose' and sparkling wines amount to the balance 10 per cent to 15 per cent. In India, the same trend is quite evident. The main reason for higher sales of red wine is that medical research reports recommend consumption of red wine to reduce cholesterol level in the blood.

Four Seasons has tied up with Pizza Hut to sell its wines across its outlets. How is this partnership faring? Any other tie-ups in the pipeline?

Currently we have a tie-up with Pizza Hut covering outlets across India, Cuppa café chain and Café Oz chain. Tie-ups with such non-traditional outlets gives us an opportunity to interact with a younger audience, generate trials and demystify wines. We believe there is a great synergy between wine and casual dining outlets. World over, wine has a strong presence in cafes and leisure drink outlets.

What are the new trends in wine drinking globally and in India?

The consumer tends to prefer fruit-forward, off-dry and thus the easy drinking style. Such wines, apart from being served as aperitifs , also go well with mildly spiced cuisine. This trend is quite evident in India too and in the Four Seasons portfolio we have Chenin Blanc and Rose especially crafted keeping the Indian consumer and cuisine in mind. The varietal range of red wines such as Shiraz and Cabernet in the Four Seasons portfolio is very fruit-forward and medium-bodied with soft tannins and thus could pair well with higher level of spices.

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