Country of Origin effects on Wine

Consumers
Under the Aegis of : Dr. Kavita Sharma

Presented by:
Tanushree Soni
MIB 2009-2011
Department of Commerce
University of Delhi
Contents

 Overview of type of Wines

 Overview of type of Grapes
 Indian Wine industry and major players
 Indian wine consumption trends
 Research Methodology
 SWOT analysis of the Indian Wine Industry
 Research Conclusion
Type of Wine

Red Wine
• made by growing and processing red or black
grapes and skins are fermented along with the
juice and body of the grape

White Wine
• made from pale grapes (mostly white but
sometimes black as well )which are skinned before
the fermentation process begins, and as a result it
is pale in color rather than dark

Sparkling Wine
• made from a variety of grapes and with different
production processes, but have a presence of
bubbles
Type of Wine

Rose Wine:
• have enough of a reddish tinge to make them
assuredly not white.

Fortified Wine:
• fortified with additional alcohol that's been added
to the base wine during fermentation, bringing the
average alcohol content up around 17-20%

Dessert Wine:
• sweet wines typically served with dessert
Grapes type for producing wine
Red Wine
 Cabernet Sauvignon 
 Merlot
 Pinot Noir
 Zinfandel
 Syrah/Shiraz 
 Malbec
Grapes type for producing wine
White Wine

 Chardonnay 
 Chenin Blanc 
 Sauvignon Blanc 
 Viognier
Indian Wine Industry
 Market currently stands at 25 million liters wrt Volume
 Consumption expected to be 18 million by the end of 2011
 Consumed mostly in 4 cities, Mumbai, New Delhi, Goa and
Bangalore

 West India 41% of total volume sales of wine North India

29%volume sales

 Only six Indian wineries in 2000. Today, the number is 65. Around
85 per cent of these are located in Maharashtra

 Around 63 per cent of the volume sales of wine are through off-
trade channel in five-star hotels, pubs and bar-restaurants
Indian Wine Market Players

WINERY WHEN 08/09  MKT

COMPANY
LOCATION STARTED (000 CS) SHARE (%)

Chaetae Indage Narayangaon 1986 215 36%

Sula Vineyards
Nasik 1999 195 33%

Grover
Bangalore 1999 70 12%
Vineyards

Rest 129 20%

Total 600 100%

Indian Wine Consumption Trends

 17 million liters of wine was consumed Market share

State
in 2010, and 20 million is expected by (in volume)
2011. Andhra Pradesh 1.2 %
Assam 2.2%
 Almost 80% of wine consumption is Delhi 10.7%
done is cities of Mumbai, Goa, Delhi and Goa 26.4%
Karnataka 19.4%
Bangalore
Maharashtra 25.9%
 Red wine is consumed the most (45%). Punjab 0.9%

White wine stands second with a Rajasthan 1.0%

Tamil Nadu 1.5%
market share of 40%, followed by
Uttar Pradesh 1.0%

sparkling wine (13%) and rose wine West Bengal 2.0%

Sub-total 92.2%
(2%).
Research Methodology

Primary Research
 Questionnaire based analysis
 84 Respondents

 Age Range: 25-60 Years

 Male Female Ratio: 1:1 approx.
 Income Level: Minimum 7 Lakhs PA
 Areas: South Delhi, Central Delhi, Noida

Secondary Research
SWOT Analysis Indian Wine Industry

and developing a more refined taste
> Youth are craving an alternative to hard liquors
> Urban population is increasing.
> Good climate for grape growing
annually over a 5 year period.
> Indian wine consumption has grown 25-30%
Strengths
Weaknesses
> Wine remains an elite taste.
> Wine is difficult to store in India due to lack of
cellars and refrigeration
> Poor awareness of wine and infrastructure.
> Use of the mass media to promote alcoholic
beverages is not permitted

Opportunities
> Supermarkets are emerging to support wine
distribution infrastructure
> Domestic market with increasing disposable
income.
> Growing tourism industry.
> In-shop advertising or on-premise promotions
are allowed in all states except Delhi government
> Domestic wine production is coddled by state
> Advertising for alcoholic beverages is banned.
> Indians still prefer whisky.
Threats
Research Conclusions

Factors influencing purchase decision

Wine Country of Origin Preference

Australia 3

India 3

Canada 0

Argentina 0

New zealand 2

Spain 10

Italy 2

France 50
Wine Consumed or know of
Current Wine Potential Wine
Drinkers Drinkers

Sula Sula
Moet & Chandon Grover
Merlot Sauvignon Blanc,
White wine Chardonnay
Dom Perignon White wine
Shiraz, Pinot Noir Red wine
Red wine Champagne
Jacob’s Creek Dom Perignon
French Wine Chantilli
Souvignon Merlot
Responses when asked the origin of the
particular wine

 Chateau D’Ori

 Sula Wines

 Zinzi
Responses when asked the origin of the
particular wine
 Cava

 Riviera

 Chantilli