Australian wine wins on price and taste

Between old and new worlds, accessibility racks up numbers and aficionados.

French wine is French wine and ‘old world’ vintages cannot be easily dismissed. But while connoisseurs and consumers grow slowly and steadily in India, indications are that women and younger people especially are reaching for the more accessible product.

Australian brands seem to increasingly fit the bill for many consumers now choosing wine. And ‘accessibility’ does equate to offerings that are reasonable to the middle-class wallet. However, it also points to palette preferences.

In a market where makers and sellers have long been challenged, Jacob’s Creek has maintained a steady leading position in India with its wines over last five years. Represented by Pernod Ricard in India, the brand sold 58,000 cases in 2013, when the total sales of Australian wine stood at 80,000 cases, according to Kartik Mohindra, Business Head, International Brands, Pernod Ricard India. He was quoting an IWSR report.

“Australian wine as a category sells almost double that of French wines. Jacob’s Creek alone accounts for more volumes than the entire category of French wines in India,” Mohindra shares. Latest IWSR data shows the brand sold more than 60,000 cases in 2014.

Competition looms Hardys has its eye on the Indian consumer through its partner Sula Selections, the import arm of Sula Vineyards. Even with Jacob’s Creek having set the bar, Hardys is aiming to compete for the largest overall mindshare for wine in India.

“We have built a brand which has been driving growth in the category of Australian wine,” Mohindra says of Jacob’s Creek, acknowledging the head start the brand has had in a geography that has traditionally served up difficult tax regulations.

But Sula Selections is upping the ante in India with its portfolio of imported wines, including offerings from South Africa, Chile and Argentina, and claims a longer term interest in this region. If Nick Pringle has his way Hardys will “take over leadership of international wines in India from Jacob’s Creek”.

Pringle, a former professional cricketer for Somerset and Commercial Director of Accolade Wines (Hardys in India), says: “We’re a global leader and so every market we play in, we want to be Number One.” While those are clear terms of play, a traditionally beer and spirits market such as India is forecast to prove favourable for wine brands in years to come.

Warm-up time Alastair Smith, Director, IWSR, says: “It is too early to speak of wine varietal trends or indeed much trend by colour in India. But red wine accounts for 61 per cent of consumption, white around 33 per cent, with the rest rosé. The outlook is extremely good. Wine culture is spreading.”

For some connoisseurs, French wine of an older vintage may still be the ultimate experience. However, there is no single French wine brand that leads in India, Mohindra points out. Offerings from Germany, Netherlands, Italy, Spain and New Zealand also court the market.

“India is a nascent but growing market, the potential of which we realise. We are looking to expand the market,” Mohindra declares. Jacob’s Creek currently has three ranges of wine for India, including its sparkling varieties.

Nick Pringle says, “India is very clearly a 10-15 year play for us. I’d like to look back in 20 years and see the partnership with Sula Selections going strong and even have added to the Hardys stable in this market.

“And Australian wines are easy on the consumer looking to enter the wine category.”

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