India Wine Report

WINE IN INDIA

Euromonitor International

March 2012

W I N E I N I N D I A P a s s p o r t I

© E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1 Trends .......................................................................................................................................... 1 Production, Imports and Exports .................................................................................................. 2 Competitive Landscape ................................................................................................................ 3 Prospects ..................................................................................................................................... 3 Category Data .............................................................................................................................. 4

Table 1 Sales of Wine by Category: Total Volume 2006-2011 .................................. 4 Table 2 Sales of Wine by Category: Total Value 2006-2011 ..................................... 5 Table 3 Sales of Wine by Category: % Total Volume Growth 2006-2011 ................. 5 Table 4 Sales of Wine by Category: % Total Value Growth 2006-2011 .................... 5 Table 5 Sales of Wine by On-trade vs Off-trade Split: Volume 2006-2011 ............... 6 Table 6 Sales of Wine by On-trade vs Off-trade Split: Value 2006-2011 .................. 6 Table 7 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2006-

2011 ............................................................................................................. 6 Table 8 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2006-

2011 ............................................................................................................. 6 Table 9 Volume Sales of Still Red Wine by Price Segment 2006-2011 .................... 6 Table 10 Volume Sales of Still White Wine by Price Segment 2006-2011 .................. 7 Table 11 Volume Sales of Other Sparkling Wine by Price Segment 2006-2011 ......... 7 Table 12 Sales of Still Red Wine by Grape/Varietal Type 2006-2011 ......................... 7 Table 13 Sales of Still White Wine by Grape/Varietal Type 2006-2011 ...................... 8 Table 14 Sales of Still Red Wine by Quality Classification 2006-2011 ........................ 8 Table 15 Sales of Still White Wine by Quality Classification 2006-2011 ..................... 8 Table 16 Wine Production, Imports and Exports: Total Volume 2005-2010 ................ 8 Table 17 Wine Imports by Country of Origin: Total Volume 2005-2010 ...................... 8 Table 18 Wine Imports by Country of Origin: Total Value 2005-2010 ......................... 9 Table 19 Wine Exports by Country of Destination: Total Volume 2005-2010 ............ 10 Table 20 Wine Exports by Country of Destination: Total Value 2005-2010 ............... 10 Table 21 Company Shares of Still Light Grape Wine by National Brand Owner

2007-2011 .................................................................................................. 11 Table 22 Company Shares of Still Light Grape Wine by Global Brand Owner

2007-2011 .................................................................................................. 11 Table 23 Brand Shares of Still Light Grape Wine 2008-2011 .................................... 12 Table 24 Company Shares of Champagne by National Brand Owner 2007-

2011 ........................................................................................................... 12 Table 25 Company Shares of Champagne by Global Brand Owner 2007-2011 ....... 12 Table 26 Brand Shares of Champagne 2008-2011 ................................................... 13 Table 27 Company Shares of Other Sparkling Wine by National Brand Owner

2007-2011 .................................................................................................. 13 Table 28 Company Shares of Other Sparkling Wine by Global Brand Owner

2007-2011 .................................................................................................. 13 Table 29 Brand Shares of Other Sparkling Wine 2008-2011 .................................... 13 Table 30 Company Shares of Fortified Wine and Vermouth by National Brand

Owner 2007-2011 ...................................................................................... 14 Table 31 Company Shares of Fortified Wine and Vermouth by Global Brand

Owner 2007-2011 ...................................................................................... 14 Table 32 Brand Shares of Fortified Wine and Vermouth 2008-2011 ......................... 14

W I N E I N I N D I A P a s s p o r t I I


Table 33 Forecast Sales of Wine by Category: Total Volume 2011-2016 ................. 15 Table 34 Forecast Sales of Wine by Category: Total Value 2011-2016 .................... 15 Table 35 Forecast Sales of Wine by Category: % Total Volume Growth 2011-

2016 ........................................................................................................... 16 Table 36 Forecast Sales of Wine by Category: % Total Value Growth 2011-

2016 ........................................................................................................... 16

W I N E I N I N D I A P a s s p o r t 1


WINE IN INDIA

HEADLINES Wine grows by 5% in total volume terms in 2011 reaching 16 million litres

Over-production and reduced demand characterise the wine market

Still light grape wine shows fastest total volume growth of 6% in 2011

In 2011 average unit prices increase by 4%

Samant Soma Wines Ltd leads the market in 2011

A 6% total volume CAGR is expected over the forecast period

TRENDS There has been growing interest in the wine market in India but it is not growing at a fast

pace. This is mainly due to over-optimism about the prospects for the market. Over-

production and reduced demand has led to slower growth in the market. Heavy taxes

imposed by state governments have led to a high increase in unit prices which in turn make it

a drink that can be consumed only on special occasions. More than half of the wineries in

Maharastra have closed down. Close to 25 million litres of wine are lying unsold.

Manufacturers are dumping their products on the market with heavy discounts. This has led to

a slower growth rate for the wine market.

The 5% growth in 2011 was significantly lower than the previous year. This is mainly due to

over- production and demand not matching up to the wine produced. Another reason was the

lower interest rate subsidies given to farmers in Maharastra to push wine sales which led to

over-production of wine which could not be sold. Wine in India is considered under the same

category as hard liquor and hence cannot be advertised openly. These factors have led to

slower growth for wine in India.

Still red wine is growing faster than other wines in India. This is the most consumed type of

wine in India. Red wine is growing faster because it is perceived to be far more healthy than

other wines. White wine is also following it closely, and is positioned as the second most

consumed wine in India. Sparkling wine or champagne is the third largest wine segment.

Champagne consumption has mostly been limited due to its perception and positioning as a

celebration or a special occasion drink. Wines are now being served in Barista and Pizza Hut

outlets. This may drive the market for wine in the short term as its perception by consumers,

or officially recognised as no longer hard liquor.

The average unit price of wine grew by 4% in 2011. The prices of wine in India are far higher

than spirits. This is mainly due to the tax levies by state governments. Imported wine in India

attracts high taxes which in turn makes wine inaccessible and it remains a drink consumed by

the affluent.

On-trade volume growth was faster than off-trade volume growth for still light grape wine and

sparkling wine. This was mainly due to sales of imported wines including Old World still wines

and champagne continuing to be restricted to high-end on-trade outlets, especially fine-dining

restaurants and bars/pubs in 5-star hotels which catered to expatriates and affluent Indian

businessmen.

India has seen a small switch from whiskies to wine and beer. Retail chains in certain states

are now allowed to sell wines. Hotels and restaurants have started offering comprehensive

wine menus as awareness is growing fast. Women have started to drink alcohol and most



often they choose wine. Even Bollywood actors and the movie or glamour models are often

seen drinking wines.

Cabernet Sauvignon and Shiraz/Syrah were the most popular red wine varieties, accounting

for 47% and 33% of total volumes, respectively, in 2011. Chenin Blanc and Sauvignon Blanc

were the most popular white wine varieties sold in India, accounting for 42% and 41% of total

volumes, respectively, in 2011. Most wine drinkers in India are not very aware of the different

varietals in wine. They are used to drinking cheap port wines but this trend is slowly changing.

People are slowly starting to understand the different varietals and new varietals such as

merlot are expected to start becoming more popular. Vinsura Winery Pvt Ltd launched a

Merlot varietal which has a velvety texture and fruity undertones. The company has also

launched White Zinfandel which is very fruity in taste and claims to go well with sea food.

New World wine accounted for 88% of total volume sales of still light grape wine in 2011. New

World wine, which includes Indian wine, dominated sales as it is more accessible to the

average Indian wine consumer. This wine is cheaper, sweeter and less complex, and is more

widely available in off-trade outlets. New World wines are becoming more popular as they are

sweet and fruity in taste. Indians are mainly first-timers when it comes to wine and hence New

World wines are becoming more popular. Wines from France, Italy and Australia account for

more than half of the Old World wines.

Off-trade volume sales of still wine are dominated by wines priced below Rs600 per litre with

only 6% of red wine and 16% of white wine volume sales coming from wines priced higher

than Rs600 per litre. Manufacturers are launching expensive wines in India which are priced

higher than Rs600. Sankalp Winery Pvt Ltd launched Collection De Platine Reserve wines

matured in French oak barrels where each varietal has its own distinct taste. Introduced in

three varietals Platine Cabernet Sauvignon, Platine Shiraz Reserva and Platine Rosé

Sparkling Brut. Prices range by varietal; from Rs1,207 to Rs1,680 for a 750ml bottle.

Cheap port wine available in Goa is packaged in plastic bottles with screw cap closures. Still

light grape wines are available mainly in glass bottles with cork closures.

Affluent women aged between 30-50 are the main consumers of wine in India. Drinking wine

is considered a symbol of status and sophistication. However, with the increase in awareness

and people starting to realise the health benefits of drinking wine, younger women are now

joining the wine-drinking trend. Close to 80% of wine sales derive from urban cities mainly

Delhi, Mumbai, Bangalore and Goa. The trend is moving towards second-tier cities but India

remains far from developing a distinct wine culture.

PRODUCTION, IMPORTS AND EXPORTS Indian market is mainly dominated by domestically produced Indian wines. Interest in wine

consumption in India is fuelling the growing demand for international wines. But Imported

wines are mainly consumed in high-end bars or restaurants due to high tariffs on the imported

wines. Domestically produced wines also have high duties levied as each state in India has

different excise duties, which are either a percentage on the sales price or an absolute

amount per bottle.

Wine is mainly produced in Maharashtra in Nasik area and Karnataka. Apart from Nashik,

India’s main wine district, wineries were also established in the Solapur, Latur and

Osmanabad districts of Maharashtra.

The major exporters of wine to India are France and South Africa. The major importers of

wine from India are Australia and the US.



COMPETITIVE LANDSCAPE Samant Soma Wines Ltd continued to be the leading player in wine in India with a 25% total

volume share in 2011. United Spirits Ltd and Grover Vineyards Ltd held second and third

places, respectively, with 13% and 11% total volume shares. While Samant Soma Wines had

a dominant position in still light grape wine and sparkling wine with Sula and other brands

such as Samara, United Spirits dominated Indian port wine with its Golconda Ruby brand.

Samant Soma Wines Ltd recorded the biggest increase in total volume sales in 2011. The

market share of the company increased from 20% in 2010 to 25% in 2011. This was because

the absence of Indage brands in India led to rapid growth in established brand such as Sula

enabling them to gain market share. The company was very successful in its marketing

techniques and also enjoyed first-mover advantage. The company has expanded rapidly and

has more than 300 employees. The company has now become synonymous with Indian wine.

The wine market in India is dominated by domestic players such as Samant Soma Wines Ltd,

United Spirits Ltd and Grover Vineyards Ltd controlling more than half of total market volume.

High duties on imported wines expanded the price gap between domestic wines and imported

wines in 2010 and this continued to act as a dampener on sales in 2011.

The high number of new brand launches that was seen over the review period continued in

2011. Sankalp Winery Pvt Ltd launched Collection De Platine Reserve wines matured in

French oak barrels where each varietal has its own distinct taste. Prices range as per varietal

from Rs1,207 to Rs1,680 for a 750ml bottle. Nirvana Biosys Pvt Ltd launched Luca Lychee

Wine in January 2011. This is the first wine from India which is totally lychee based. It is

expected to appeal to consumers because of its health properties, including being high in

vitamin C as well as low in saturated fat and cholesterol. Aspri Spirits Pvt Ltd has also

launched wines from the SoGrape Group in the Indian market, including red and white wines

from different parts of the world.

Living Liquidz India Pvt Ltd launched Mokssh wines in Mumbai in October 2010 with unique

packaging where relevant information is embossed on the bottle instead of the regular printed

label pasted on the bottle. This is likely to attract a niche market of wine drinkers and

connoisseurs. Good Earth Winery has also launched a rosé wine called Bella which is to be

paired with Indian spicy foods and Blanca, a white wine that can be paired with curries. In July

2011, the company also introduced Taal and Tarang wines in its Raga collections of wines.

Consolidation is expected to take place in the wine market with a merger between Grover

Vineyards and Valle de Vin, which makes Zampa wines. The combined entity will be called

Grover Zampa Pvt Ltd. This has lead to termination of the distribution agreement with Brindco

and a higher combined market share for the company.

PROSPECTS Increased disposable income coupled with wine marketing by manufacturers and the

influence of Western culture will lead to growth in the wine market in India. The market is still

at a nascent stage with considerable potential for high growth. Wine sales are typically

restricted to metro cities but there is growing demand from second- and third-tier cities as

well. Wine promoted well in these cities could lead to a dramatic increase in sales in India.

Working professionals and young adults will drive sales of wine.

The 2011-2016 period is expected to see a total volume CAGR of 6%. This is far lower than

the growth rate over the review period due to the upheaval in the wine market due to over-

production. The growth rate is lower due to the disappearance of Indage Vintners Ltd from the

wine market and the high taxation levies by state governments. This has made the cost of



wine bottles so expensive that consumers are now required to spend a huge amount to buy a

good-quality wine.

Wines sales are expected to perform better in 2012. Samant Soma Wines Ltd has performed

well in 2011 and is expected to strengthen its position further. Supermarkets and

hypermarkets in cities such as Delhi and Bangalore have started to sell wines which will

improve the sales of wine in India. Astute marketing strategies from manufacturers and

increased awareness will help to drive consumption.

Duties, taxes and special fees levied by the state government on domestic and imported

wines are a major threat to the wine market. The complex state licence approval process and

the high import duties levied on imported wines will lead to high increases in unit prices, likely

encouraging consumers to start shifting to premium spirits and beers instead of wines.

Average unit prices are expected to rise steadily over the forecast period due to the increase

in input costs and experimentation produces more and more sophisticated consumers.

However, economy wine will continue to generate high volume sales due to its affordability

and accessibility in off-trade channels.

New launches in 2011 particularly by Sankalp Winery Pvt Ltd under the premium wines

segment are expected to do well in the short term as affluent consumers struggle with

relatively poor quality brands being sold at high prices due to regressive taxation. The key to

success in this industry is branding and wine makers are spending heavily on strategies such

as surrogate advertising to enhance their market presence.

United Spirits Ltd is planning to launch new brands of wines, focusing mainly on the Four

Seasons brand in 2011. The company is aiming to consolidate its second position ahead of

Grover Vineyards during the forecast period. The company has a porfolio of wines from

economy to premium to cater to the majority of its clientele’s needs.

On-trade performance is expected to be slightly better than off-trade performance due to the

increase in demand from dynamic markets such as New Delhi, Mumbai and Bangalore where

the number of restaurants and pubs are increasing every day. Manufacturers are using the

on-trade channel for promoting and introducing their products to consumers to establish a

customer base. On-trade promotions are allowed in all the states of India except Delhi.

Manufacturers such as Samant Soma Wines Ltd are using this channel to promote and

launch their products.

CATEGORY DATA

Table 1 Sales of Wine by Category: Total Volume 2006-2011

'000 litres 2006 2007 2008 2009 2010 2011 Fortified Wine and 2,563.1 3,332.5 4,169.2 5,010.0 5,832.3 6,106.0 Vermouth - Indian Port Wine 2,563.1 3,332.5 4,169.2 5,010.0 5,832.3 6,106.0 Non-Grape Wine - - - - - - Sparkling Wine 381.3 466.8 491.4 421.7 425.1 441.7 - Champagne 97.2 120.1 124.2 135.8 136.8 141.9 - Other Sparkling Wine 284.1 346.7 367.3 285.9 288.3 299.7 Still Light Grape Wine 5,397.3 7,201.8 7,973.8 8,308.4 9,297.0 9,814.6 - Still Red Wine 2,725.4 3,639.0 4,038.2 4,253.6 4,917.0 5,202.3 - Still Rosé Wine - - - - - - - Still White Wine 2,672.0 3,562.7 3,935.6 4,054.8 4,380.0 4,612.3 Wine 8,341.8 11,001.1 12,634.4 13,740.1 15,554.4 16,362.3



Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 2 Sales of Wine by Category: Total Value 2006-2011

Rs million 2006 2007 2008 2009 2010 2011 Fortified Wine and 651.9 851.9 1,071.8 1,287.7 1,517.8 1,639.4 Vermouth - Indian Port Wine 651.9 851.9 1,071.8 1,287.7 1,517.8 1,639.4 Non-Grape Wine - - - - - - Sparkling Wine 1,167.1 1,487.2 1,563.9 1,599.0 1,633.8 1,772.1 - Champagne 855.7 1,105.5 1,160.1 1,289.9 1,312.0 1,424.4 - Other Sparkling Wine 311.3 381.7 403.8 309.1 321.7 347.7 Still Light Grape Wine 4,583.8 6,180.8 6,865.8 7,085.1 8,117.6 8,881.5 - Still Red Wine 2,179.4 2,951.4 3,287.9 3,432.3 4,105.6 4,522.1 - Still Rosé Wine - - - - - - - Still White Wine 2,404.4 3,229.4 3,577.9 3,652.9 4,012.0 4,359.3 Wine 6,402.8 8,519.9 9,501.5 9,971.8 11,269.2 12,293.0


Table 3 Sales of Wine by Category: % Total Volume Growth 2006-2011

% total volume growth 2010/11 2006-11 CAGR 2006/11 Total Fortified Wine and Vermouth 4.7 19.0 138.2 - Indian Port Wine 4.7 19.0 138.2 Non-Grape Wine - - - Sparkling Wine 3.9 3.0 15.8 - Champagne 3.7 7.9 46.0 - Other Sparkling Wine 4.0 1.1 5.5 Still Light Grape Wine 5.6 12.7 81.8 - Still Red Wine 5.8 13.8 90.9 - Still Rosé Wine - - - - Still White Wine 5.3 11.5 72.6 Wine 5.2 14.4 96.1


Table 4 Sales of Wine by Category: % Total Value Growth 2006-2011

% local currency, current value growth 2010/11 2006-11 CAGR 2006/11 Total Fortified Wine and Vermouth 8.0 20.3 151.5 - Indian Port Wine 8.0 20.3 151.5 Non-Grape Wine - - - Sparkling Wine 8.5 8.7 51.8 - Champagne 8.6 10.7 66.5 - Other Sparkling Wine 8.1 2.2 11.7 Still Light Grape Wine 9.4 14.1 93.8 - Still Red Wine 10.1 15.7 107.5 - Still Rosé Wine - - -



- Still White Wine 8.7 12.6 81.3 Wine 9.1 13.9 92.0


Table 5 Sales of Wine by On-trade vs Off-trade Split: Volume 2006-2011

million litres 2006 2007 2008 2009 2010 2011 Off-trade 5.9 7.8 9.0 9.9 11.2 11.8 On-trade 2.4 3.2 3.6 3.9 4.3 4.6 Total 8.3 11.0 12.6 13.7 15.6 16.4


Table 6 Sales of Wine by On-trade vs Off-trade Split: Value 2006-2011

Rs million 2006 2007 2008 2009 2010 2011 Off-trade 2,321.2 3,091.3 3,516.8 3,660.9 4,277.7 4,699.1 On-trade 4,081.6 5,428.6 5,984.7 6,310.9 6,991.4 7,593.9 Total 6,402.8 8,519.9 9,501.5 9,971.8 11,269.2 12,293.0


Table 7 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2006-2011

% volume growth 2010/11 2006-11 CAGR 2006/11 TOTAL Off-trade 5.1 14.9 100.0 On-trade 5.5 13.3 86.8 Total 5.2 14.4 96.1


Table 8 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2006-2011

% current value growth 2010/11 2006-11 CAGR 2006/11 TOTAL Off-trade 9.8 15.1 102.4 On-trade 8.6 13.2 86.1 Total 9.1 13.9 92.0


Table 9 Volume Sales of Still Red Wine by Price Segment 2006-2011



% off-trade 2006 2007 2008 2009 2010 2011 Under Rs199.99 4.0 4.0 4.0 4.0 4.0 4.0 Rs200 to Rs299.99 16.5 15.5 15.0 15.0 16.0 16.0 Rs300 to Rs399.99 29.0 29.0 30.0 29.7 29.0 29.0 Rs400 to Rs499.99 29.0 30.0 29.0 29.5 29.2 29.0 Rs500 to Rs599.99 15.5 15.5 16.0 16.0 16.0 16.0 Rs600 and above 6.0 6.0 6.0 5.8 5.8 6.0 Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 10 Volume Sales of Still White Wine by Price Segment 2006-2011

% off-trade 2006 2007 2008 2009 2010 2011 Under Rs199.99 10.0 10.0 10.0 10.0 10.0 10.0 Rs200 to Rs299.99 15.0 14.0 14.0 14.0 14.0 14.0 Rs300 to Rs399.99 16.0 17.0 17.0 17.2 17.0 17.0 Rs400 to Rs499.99 24.0 24.5 24.0 25.0 26.5 26.0 Rs500 to Rs599.99 19.0 18.5 19.0 18.0 17.0 17.0 Rs600 and above 16.0 16.0 16.0 15.8 15.5 16.0 Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 11 Volume Sales of Other Sparkling Wine by Price Segment 2006-2011

% off-trade 2006 2007 2008 2009 2010 2011 Under Rs449.99 - 3.0 4.0 3.0 1.0 1.0 Rs450 to Rs549.99 0.5 1.0 1.0 1.0 1.0 1.0 Rs550 to Rs649.99 0.5 2.0 1.0 4.0 2.0 2.0 Rs650 to Rs749.99 18.0 14.0 11.5 13.0 14.5 13.0 Rs750 to Rs849.99 36.0 36.0 37.0 35.0 38.0 39.0 Rs850 and above 45.0 44.0 45.5 44.0 43.5 44.0 Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 12 Sales of Still Red Wine by Grape/Varietal Type 2006-2011

% total volume 2006 2007 2008 2009 2010 2011 Cabernet Sauvignon 60.0 57.0 55.0 52.0 48.0 47.0 Shiraz/Syrah 21.0 27.5 29.0 30.0 32.0 33.0 Others 19.0 15.5 16.0 18.0 20.0 20.0 Total 100.0 100.0 100.0 100.0 100.0 100.0




Table 13 Sales of Still White Wine by Grape/Varietal Type 2006-2011

% total volume 2006 2007 2008 2009 2010 2011 Chenin Blanc 38.0 40.0 42.0 42.0 42.0 42.0 Sauvignon Blanc 36.0 36.0 38.0 40.0 41.0 41.0 Others 26.0 24.0 20.0 18.0 17.0 17.0 Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 14 Sales of Still Red Wine by Quality Classification 2006-2011

% total volume 2006 2007 2008 2009 2010 2011 New World 88.0 87.5 87.0 88.0 88.0 88.0 Old World 12.0 12.5 13.0 12.0 12.0 12.0 Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 15 Sales of Still White Wine by Quality Classification 2006-2011

% total volume 2006 2007 2008 2009 2010 2011 New World 94.0 93.5 93.0 93.5 93.0 93.0 Old World 6.0 6.5 7.0 6.5 7.0 7.0 Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 16 Wine Production, Imports and Exports: Total Volume 2005-2010

million litres 2005 2006 2007 2008 2009 2010 Wine – Exports 0.6 0.8 1.1 1.6 2.1 0.7 Wine – Imports 1.4 1.8 3.1 3.3 1.8 -

Source: GTIS, Euromonitor International Note: ‘-’ indicates data not available

Table 17 Wine Imports by Country of Origin: Total Volume 2005-2010

million litres 2005 2006 2007 2008 2009 2010 Wine – France 0.6 0.8 1.0 1.0 0.6 - Wine – Italy 0.2 0.2 0.3 0.3 0.3 - Wine – Australia 0.2 0.3 0.8 0.6 0.2 -



Wine – Singapore 0.0 0.0 0.0 0.1 0.1 - Wine – US 0.0 0.1 0.1 0.1 0.1 - Wine – United Kingdom 0.0 0.1 0.1 0.1 0.1 - Wine – Chile 0.1 0.0 0.1 0.1 0.1 - Wine – Unidentified 0.0 0.0 0.0 0.0 0.1 - Country Wine – South Africa 0.1 0.0 0.3 0.6 0.0 - Wine – Spain 0.0 0.0 0.0 0.1 0.0 - Wine – New Zealand 0.0 0.0 0.0 0.0 0.0 - Wine – United Arab 0.0 0.0 0.0 0.0 0.0 - Emirates Wine – Argentina 0.0 0.0 0.0 0.0 0.0 - Wine – Germany 0.1 0.1 0.0 0.1 0.0 - Wine – Netherlands 0.0 0.0 0.0 0.0 0.0 - Wine – Nepal - 0.0 - - 0.0 - Wine – Portugal 0.0 0.0 0.0 0.0 0.0 - Wine – Sweden - 0.0 0.0 - 0.0 - Wine – Japan 0.0 0.0 0.0 0.0 0.0 - Wine – Bahamas - - - 0.0 0.0 - Wine – Poland - 0.0 - - - - Wine – Mexico 0.0 0.0 - 0.0 - - Wine – Saudi Arabia 0.0 0.0 - - - - Wine – Finland - 0.0 0.0 - - - Wine – French Polynesia - - - 0.0 - - Wine – Others 0.0 0.0 0.1 0.1 0.0 - Wine – Total 1.4 1.8 3.1 3.3 1.8 -


Table 18 Wine Imports by Country of Origin: Total Value 2005-2010

Rs million 2005 2006 2007 2008 2009 2010 Wine – France 164.8 207.3 293.5 286.7 149.1 - Wine – Australia 42.2 57.7 98.2 112.1 55.2 - Wine – Italy 42.4 67.1 70.3 89.0 51.7 - Wine – Singapore 1.4 1.8 6.0 13.5 42.9 - Wine – US 16.8 26.0 30.8 37.2 41.7 - Wine – United Kingdom 9.5 30.7 29.0 37.3 23.1 - Wine – New Zealand 4.7 2.4 7.9 12.4 15.3 - Wine – South Africa 6.0 4.7 22.4 31.3 11.9 - Wine – Chile 12.7 11.7 16.5 24.0 11.8 - Wine – Spain 10.0 4.7 6.7 13.6 9.9 - Wine – Unidentified 0.1 0.1 0.6 3.2 9.5 - Country Wine – United Arab 8.8 8.1 5.6 5.7 7.5 - Emirates Wine – Germany 14.8 12.4 9.9 14.2 4.9 - Wine – Netherlands 5.4 2.0 0.4 4.7 4.7 - Wine – Sweden - 1.6 0.0 - 3.2 - Wine – Argentina 4.4 15.5 8.8 7.5 3.1 - Wine – Portugal 3.3 5.4 2.3 4.4 2.1 - Wine – Japan 2.0 2.1 1.4 5.7 1.6 - Wine – Bahamas - - - 0.2 0.3 - Wine – Finland - 0.3 0.6 - - - Wine – Mauritius - - - 0.3 - - Wine – Mexico 0.4 1.1 - 0.7 - - Wine – Saudi Arabia 0.1 0.5 - - - -



Wine – Poland - 4.2 - - - - Wine – French Polynesia - - - 0.5 - - Wine – Others 3.4 6.9 34.5 8.3 0.8 - Wine – Total 353.2 474.1 645.4 712.5 450.3 -


Table 19 Wine Exports by Country of Destination: Total Volume 2005-2010

million litres 2005 2006 2007 2008 2009 2010 Wine – United Arab 0.1 0.1 0.1 0.0 0.1 0.2 Emirates Wine – Japan 0.0 0.0 0.1 0.1 0.1 0.1 Wine – Germany 0.0 0.0 0.1 0.0 0.0 0.1 Wine – France 0.1 0.1 0.2 0.1 0.5 0.1 Wine – United Kingdom 0.1 0.0 0.1 0.1 0.0 0.1 Wine – US 0.1 0.1 0.1 0.2 0.1 0.1 Wine – Maldives 0.0 0.3 0.0 0.0 0.4 0.0 Wine – New Zealand 0.0 - - - - 0.0 Wine – Netherlands 0.0 0.0 0.1 0.1 0.0 0.0 Wine – Norway - - 0.0 0.0 0.0 0.0 Wine – Bhutan 0.0 - - 0.1 0.1 0.0 Wine – Belgium 0.0 0.1 0.2 0.0 0.0 0.0 Wine – Italy 0.0 0.0 0.1 0.0 0.0 0.0 Wine – Canada 0.0 0.0 0.0 0.0 0.0 0.0 Wine – Sri Lanka 0.0 0.0 0.0 0.0 0.0 0.0 Wine – Switzerland 0.0 - - - - 0.0 Wine – Poland 0.0 - - - 0.0 0.0 Wine – Thailand 0.0 - - 0.0 0.0 0.0 Wine – Malaysia - 0.0 0.0 - 0.0 0.0 Wine – Finland - 0.0 0.0 0.0 - 0.0 Wine – Australia 0.0 0.0 0.0 0.6 0.3 - Wine – Algeria - - - - 0.0 - Wine – Romania - - - - 0.0 - Wine – Ghana - - 0.0 0.0 0.0 - Wine – Tanzania - - 0.0 - - - Wine – Others 0.2 0.0 0.0 0.1 0.4 0.0 Wine – Total 0.6 0.8 1.1 1.6 2.1 0.7


Table 20 Wine Exports by Country of Destination: Total Value 2005-2010

Rs million 2005 2006 2007 2008 2009 2010 Wine – Malaysia - 0.8 0.3 - 0.0 20.2 Wine – Japan 0.3 0.1 6.9 12.1 9.5 18.4 Wine – Netherlands 0.8 2.1 18.1 11.2 8.5 17.9 Wine – France 17.8 15.5 20.1 17.9 46.3 11.3 Wine – United Arab 3.9 6.6 8.0 4.2 9.5 10.7 Emirates Wine – Germany 2.1 1.8 6.4 3.6 5.0 9.4 Wine – US 7.4 8.5 10.3 17.7 7.7 8.1 Wine – Maldives 0.1 8.8 1.5 10.5 48.6 6.8



Wine – United Kingdom 6.2 3.0 9.4 4.5 3.4 5.7 Wine – Bhutan 0.5 - - 7.3 12.2 5.3 Wine – New Zealand 0.0 - - - - 3.2 Wine – Vietnam - - - - - 2.8 Wine – Norway - - 0.5 0.7 0.5 2.1 Wine – Sri Lanka 0.4 1.0 0.2 0.6 0.8 1.6 Wine – Belgium 2.5 1.9 12.1 1.1 1.7 1.6 Wine – Canada 0.4 1.5 0.2 0.0 0.0 1.5 Wine – Italy 0.9 2.2 11.5 1.1 0.4 1.0 Wine – Switzerland 0.0 - - - - 0.7 Wine – Poland 0.0 - - - 1.0 0.6 Wine – Thailand 2.7 - - 0.0 0.1 0.5 Wine – Finland - 0.0 5.0 0.9 - 0.5 Wine – Spain - 0.3 - - 0.3 0.3 Wine – Hong Kong 0.5 - 0.5 0.2 0.4 0.3 Wine – Sweden 0.2 0.0 2.2 2.7 0.7 0.1 Wine – Nepal 0.4 0.1 0.2 1.3 0.1 0.0 Wine – Others 7.9 1.4 1.1 48.1 58.2 0.1 Wine – Total 55.1 55.6 114.5 145.9 215.0 130.8


Table 21 Company Shares of Still Light Grape Wine by National Brand Owner 2007-2011

% total volume Company 2007 2008 2009 2010 2011 Samant Soma Wines Ltd 18.1 19.2 23.2 28.0 34.7 Grover Vineyards Ltd 10.1 9.8 12.0 15.1 18.3 United Spirits Ltd - 0.9 4.2 7.3 8.8 Indage Vintners Ltd - - 24.4 7.7 5.6 Pernod Ricard India Pvt - 1.9 4.0 4.5 5.0 Ltd Sankalp Winery Pvt Ltd 3.1 3.1 3.6 4.3 4.4 Champagne Indage Ltd 40.3 41.9 - - - Others 28.5 23.2 28.5 33.2 23.2 Total 100.0 100.0 100.0 100.0 100.0


Table 22 Company Shares of Still Light Grape Wine by Global Brand Owner 2007-2011

% total volume Company 2007 2008 2009 2010 2011 Samant Soma Wines Ltd 18.1 19.2 23.2 28.0 34.7 Grover Vineyards Ltd 10.1 9.8 12.0 15.1 18.3 UB Group - 0.9 4.2 7.3 8.8 Indage Vintners Ltd - - 24.4 7.7 5.6 Pernod Ricard Groupe - 1.9 4.0 4.5 5.0 Sankalp Winery Pvt Ltd 3.1 3.1 3.6 4.3 4.4 Champagne Indage Ltd 40.3 41.9 - - - Others 28.5 23.2 28.5 33.2 23.2 Total 100.0 100.0 100.0 100.0 100.0




Table 23 Brand Shares of Still Light Grape Wine 2008-2011

% total volume Brand (Global Brand Company 2008 2009 2010 2011 Owner) Sula Vineyards Samant Soma Wines Ltd 16.3 19.3 22.6 27.8 Grover Vineyards Grover Vineyards Ltd 9.8 12.0 15.1 18.3 Riviera Indage Vintners Ltd - 6.0 7.0 5.1 Four Seasons (UB United Spirits Ltd - 1.2 3.5 4.8 Group) Vinsura Vineyards Sankalp Winery Pvt Ltd 3.1 3.6 4.3 4.4 Jacob's Creek Pernod Ricard India Pvt 0.6 2.2 2.6 2.6 (Pernod Ricard Ltd Groupe) Nine Hills (Pernod Pernod Ricard India Pvt 1.3 1.8 1.9 2.4 Ricard Groupe) Ltd Chantilli Indage Vintners Ltd - 6.6 0.8 0.5 Ivy Indage Vintners Ltd - 1.0 - - Vino Champagne Indage Ltd 8.2 - - - Riviera Champagne Indage Ltd 9.1 - - - Ivy Champagne Indage Ltd 1.8 - - - Chantilli Champagne Indage Ltd 12.5 - - - Vin Ballet Champagne Indage Ltd 4.7 - - - Vin Ballet Indage Vintners Ltd - 3.0 - - Vino Indage Vintners Ltd - 3.6 - - Others Others 32.6 39.7 42.3 34.1 Total Total 100.0 100.0 100.0 100.0


Table 24 Company Shares of Champagne by National Brand Owner 2007-2011

% total volume Company 2007 2008 2009 2010 2011 Moët Hennessy India Ltd 95.1 93.8 92.4 94.8 94.8 Others 4.9 6.2 7.6 5.2 5.2 Total 100.0 100.0 100.0 100.0 100.0


Table 25 Company Shares of Champagne by Global Brand Owner 2007-2011

% total volume Company 2007 2008 2009 2010 2011 LVMH Moët Hennessy 95.1 93.8 92.4 94.8 94.8 Louis Vuitton SA Others 4.9 6.2 7.6 5.2 5.2 Total 100.0 100.0 100.0 100.0 100.0




Table 26 Brand Shares of Champagne 2008-2011

% total volume Brand (Global Brand Company 2008 2009 2010 2011 Owner) Moët & Chandon Moët Hennessy India Ltd 54.0 53.0 54.3 54.2 (LVMH Moët Hennessy Louis Vuitton SA) Dom Pérignon (LVMH Moët Hennessy India Ltd 39.9 39.4 40.5 40.6 Moët Hennessy Louis Vuitton SA) Others Others 6.2 7.6 5.2 5.2 Total Total 100.0 100.0 100.0 100.0


Table 27 Company Shares of Other Sparkling Wine by National Brand Owner 2007-2011

% total volume Company 2007 2008 2009 2010 2011 Samant Soma Wines Ltd 35.7 35.5 60.0 75.0 81.0 Sankalp Winery Pvt Ltd - 0.5 5.5 8.5 8.8 Indage Vintners Ltd - - 22.0 1.0 - Champagne Indage Ltd 58.0 55.5 - - - Others 6.2 8.4 12.5 15.5 10.2 Total 100.0 100.0 100.0 100.0 100.0


Table 28 Company Shares of Other Sparkling Wine by Global Brand Owner 2007-2011

% total volume Company 2007 2008 2009 2010 2011 Samant Soma Wines Ltd 35.7 35.5 60.0 75.0 81.0 Sankalp Winery Pvt Ltd - 0.5 5.5 8.5 8.8 Champagne Indage Ltd 58.0 55.5 - - - Indage Vintners Ltd - - 22.0 1.0 - Others 6.2 8.4 12.5 15.5 10.2 Total 100.0 100.0 100.0 100.0 100.0


Table 29 Brand Shares of Other Sparkling Wine 2008-2011

% total volume Brand (Global Brand Company 2008 2009 2010 2011 Owner) Sula Brut Samant Soma Wines Ltd 35.5 60.0 75.0 81.0 Vinsura Vineyards Sankalp Winery Pvt Ltd 0.5 5.5 8.5 8.8



Brut Joie Indage Vintners Ltd - 7.0 - - Marquise de Pompadour Indage Vintners Ltd - 15.0 1.0 - Joie Champagne Indage Ltd 14.0 - - - Marquise de Pompadour Champagne Indage Ltd 41.5 - - - Others Others 8.4 12.5 15.5 10.2 Total Total 100.0 100.0 100.0 100.0


Table 30 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2007-2011

% total volume Company 2007 2008 2009 2010 2011 United Spirits Ltd 28.0 27.0 27.0 21.5 21.6 Heritage Grape Winery 10.0 10.0 10.0 11.5 12.4 Pvt Ltd Samant Soma Wines Ltd - - 4.0 6.3 7.8 Vinbros & Co Ltd 8.0 8.0 8.0 7.4 7.6 John Distilleries Ltd 4.0 4.0 4.0 3.8 4.0 Indage Vintners Ltd - - 6.2 1.2 0.4 Champagne Indage Ltd 14.4 12.6 - - - Shaw Wallace & Co Ltd - - - - - Others 35.6 38.4 40.8 48.3 46.2 Total 100.0 100.0 100.0 100.0 100.0


Table 31 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2007-2011

% total volume Company 2007 2008 2009 2010 2011 UB Group 28.0 27.0 27.0 21.5 21.6 Heritage Grape Winery 10.0 10.0 10.0 11.5 12.4 Pvt Ltd Samant Soma Wines Ltd - - 4.0 6.3 7.8 Vinbros & Co Ltd 8.0 8.0 8.0 7.4 7.6 John Distilleries Ltd 4.0 4.0 4.0 3.8 4.0 Indage Vintners Ltd - - 6.2 1.2 0.4 Champagne Indage Ltd 14.4 12.6 - - - Shaw Wallace & Co Ltd - - - - - Others 35.6 38.4 40.8 48.3 46.2 Total 100.0 100.0 100.0 100.0 100.0


Table 32 Brand Shares of Fortified Wine and Vermouth 2008-2011

% total volume Brand (Global Brand Company 2008 2009 2010 2011 Owner)



Golconda Ruby (UB United Spirits Ltd 27.0 27.0 21.5 21.6 Group) Heritage Red Wine Heritage Grape Winery 10.0 10.0 11.5 12.4 Pvt Ltd Port Wine 1000 Samant Soma Wines Ltd - 4.0 6.3 7.8 Globus Fortified Vinbros & Co Ltd 8.0 8.0 7.4 7.6 Port Wine Goanas John Distilleries Ltd 4.0 4.0 3.8 4.0 Figueira Ruby Port Indage Vintners Ltd - 5.0 1.0 0.4 Figueira White Port Indage Vintners Ltd - 1.2 0.1 0.0 Figueira White Port Champagne Indage Ltd 2.6 - - - Figueira Ruby Port Champagne Indage Ltd 10.0 - - - Golconda Ruby Shaw Wallace & Co Ltd - - - - Golconda Ruby (UB Shaw Wallace & Co Ltd - - - - Group) Others Others 38.4 40.8 48.3 46.2 Total Total 100.0 100.0 100.0 100.0


Table 33 Forecast Sales of Wine by Category: Total Volume 2011-2016

'000 litres 2011 2012 2013 2014 2015 2016 Fortified Wine and 6,106.0 6,419.7 6,781.2 7,202.7 7,686.6 8,241.4 Vermouth - Indian Port Wine 6,106.0 6,419.7 6,781.2 7,202.7 7,686.6 8,241.4 Non-Grape Wine - - - - - - Sparkling Wine 441.7 459.5 479.1 500.9 524.8 551.3 - Champagne 141.9 147.5 153.7 160.5 168.1 176.4 - Other Sparkling Wine 299.7 312.0 325.4 340.3 356.8 374.9 Still Light Grape Wine 9,814.6 10,390.2 11,021.5 11,713.7 12,465.2 13,288.4 - Still Red Wine 5,202.3 5,516.6 5,856.8 6,224.9 6,615.3 7,038.6 - Still Rosé Wine - - - - - - - Still White Wine 4,612.3 4,873.6 5,164.7 5,488.9 5,849.9 6,249.7 Wine 16,362.3 17,269.3 18,281.9 19,417.3 20,676.6 22,081.0

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 34 Forecast Sales of Wine by Category: Total Value 2011-2016

Rs million 2011 2012 2013 2014 2015 2016 Fortified Wine and 1,639.4 1,698.0 1,777.8 1,871.7 1,979.9 2,102.6 Vermouth - Indian Port Wine 1,639.4 1,698.0 1,777.8 1,871.7 1,979.9 2,102.6 Non-Grape Wine - - - - - - Sparkling Wine 1,772.1 1,831.3 1,908.5 1,993.6 2,087.7 2,189.7 - Champagne 1,424.4 1,470.4 1,531.1 1,598.3 1,672.6 1,753.1 - Other Sparkling Wine 347.7 360.9 377.4 395.3 415.1 436.6 Still Light Grape Wine 8,881.5 9,264.6 9,733.6 10,249.1 10,810.6 11,416.8 - Still Red Wine 4,522.1 4,725.5 4,973.6 5,243.6 5,532.8 5,842.6 - Still Rosé Wine - - - - - - - Still White Wine 4,359.3 4,539.0 4,759.9 5,005.5 5,277.8 5,574.2



Wine 12,293.0 12,793.9 13,419.8 14,114.5 14,878.3 15,709.1


Table 35 Forecast Sales of Wine by Category: % Total Volume Growth 2011-2016

% total volume growth 2015/16 2011-16 CAGR 2011/16 Total Fortified Wine and Vermouth 7.2 6.2 35.0 - Indian Port Wine 7.2 6.2 35.0 Non-Grape Wine - - - Sparkling Wine 5.0 4.5 24.8 - Champagne 4.9 4.4 24.3 - Other Sparkling Wine 5.1 4.6 25.1 Still Light Grape Wine 6.6 6.2 35.4 - Still Red Wine 6.4 6.2 35.3 - Still Rosé Wine - - - - Still White Wine 6.8 6.3 35.5 Wine 6.8 6.2 35.0


Table 36 Forecast Sales of Wine by Category: % Total Value Growth 2011-2016

% local currency, constant value growth 2011-16 CAGR 2011/16 TOTAL Fortified Wine and Vermouth 5.1 28.3 - Indian Port Wine 5.1 28.3 Non-Grape Wine - - Sparkling Wine 4.3 23.6 - Champagne 4.2 23.1 - Other Sparkling Wine 4.7 25.6 Still Light Grape Wine 5.2 28.5 - Still Red Wine 5.3 29.2 - Still Rosé Wine - - - Still White Wine 5.0 27.9 Wine 5.0 27.8


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