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January 2008 - Posts
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 From being the pioneers of the Indian wine industry and the first to introduce the French art of wine making in India to the 100 per cent acquisition of Thachi Wines of South Australia, Chateau Indage has come a long way. In an interview Ranjit Chowghule, MD, Chateau Indage shares the key to the success of the company and its brands.
Excerpts:
While the Indian wine market is bustling with a number of new kiddies in the block, the father figure-Chateau Indage is busy planning a lot of forward integration and developments.
With more than 80 per cent growth registered in the last two years, and a sales turn over of Rs 145 crores, consolidated last year, the company is flying high. The fastest growing brands of the company like Chantilli, Riviera, Figuiera have become a household name among the Indian connoisseurs.
The latest move of the company has been remarkable as it acquired a South Australian winery, Thachi Wines that belongs to a parent, Tandou Ltd, through 100 per cent equity.
Ranjit says, “Our core objectives for the acquisition is for broadening the range of Indage wines both in overseas markets as well as India. This move also ensures 400% capacity expansion from the current million cases to 4 million cases through a single acquisition.”
Technology exchange in winemaking and viticulture is also a critical aspect behind the move due to the similarities in both India and South Australia as wine growing regions which will play a key aspect in improving the future of the Indian wine industry. And, finally, it adds to the already positive relationship created with South Australia, specifically with the University of Adelaide, which has signed an MOU for cooperation with the Indian Institute of Vine & Wine, promoted by Chateau Indage.
The winery is a well equipped facility in a country recognized for innovative practices by winemakers the world over. Its excellent facilities and the traditional skills of our winemakers combine to produce some of the finest examples of Australian wines. At its maximum crush capacity of 21,000 tonnes and with a storage capacity of 27 million litres (3 million cases) the Thachi winery is Australia’s 7th largest producer. The focus, however, is on quality rather than quantity with production of premium quality wines that are quintessentially Australian, as well as superb examples of wines made from alternative grape varieties, says, Ranjit.
Chateau Indage has also been trying to create a subculture and awareness of wines India.
“We have over 36 wine brands in our portfolio that controls 85% of the $100 million Indian wine market while regularly adding new brands every year. Château Indage is the only champagne producing and exporting vintners in India and the only champagne producing company in all of Asia. Our wine brands reach more than 69 countries including France, UK, and the US, reflecting a global presence. Our brands have been regular winners of awards at the international level and till date we’ve won 49 of them,” he says.
Revealing further, he says that the takeover of the Australian winery has opened up a huge market in the UK and the US. We are also setting our sails in acquiring wineries in California, Spain, Italy, South Africa, Chile, Argentina and France’s Burgundy and Provence regions. Our exports already span 69 countries across the globe.
At the domestic market front, there has been an increase in demand for wine and it has also given rise to a lot of new players who have recently entered the market with good quality wines. So, how does he plan to cope up with such a situation? With our strong distribution network, our reach is absolute across all segments of socio-economic classes. We have bridged varied amounts of price gaps, demand gaps, introduced newer innovative varietals, and explored whole new categories altogether. Chateau Indage is also coming up with revolutionary and encouraging ways of wine consumption by installing wine dispensing machines, and making wine available to the consumer in new-found touch-points like foodcourts, hypermalls, retail chains, multiplexes, etc.
The company has also acquired a winery in Simla, Himachal Pradesh where the initial expenditure is approximately Rs 12 crores. Ranjit says we will be spending another Rs 5 crores on viticulture. The current plantation is about 50 acres which will expand to 500 acres through contract plantation. Further to this, we are also tying up with more bottling facilities across Europe, Australia and the US to alleviate a global presence.
Discussing about the current trends in the Indian market, he says that there is a constant rise in wine consumption not only at the higher strata income grosser but also lower segments as well as the beginner levels. More and more consumers are turning to wine because of the health factor which justifies the shift from hard liquor to wines. This shift is visible across all segments.
The Indage Vineyards Mega Wine Fest 2007 is being held across India in various cities, which is also a part of our silver jubilee celebrations. These festivals offer innovative and radical ways of serving of wines with abundance being the buzzword. We are serving our wines by the tumbler!
Blurb:
Château Indage has 36 wine brands in its portfolio that controls 85% of the $100 million Indian wine market while regularly adding new brands every year. These wine brands reach more than 69 countries including France, UK, and the US, reflecting a global presence. It is also the only champagne producing and exporting vintners in India and the only champagne producing company in all of Asia.
Box item:
Chateau Indage has recently added few new brands into its portfolio. A premium brand which signifies the Indage group’s winemaking heritage called Indage Vineyards, a brand which demystifies sparkling wines called VINO sparkling, a Riviera Reserve and region specific styled wines.
Courtesy: http://www.ambrosiaindia.com
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 French winemaker Frederic Dezauzief realizes that the Indian wine industry is changing, and changing in a wrong way. The art of winemaking in India is in need of impetus from marketing strategy and resource management, sounds Frederic in an interview with IndianWine.com.
He feels that market dynamics are altering the spirit behind winemaking, and small wineries are bearing the brunt. Most of the small wineries are supplying in bulk to Diageo, Sula, UB and Indage, the bigger players. The wine is created as per buyer specifications. This leaves little room for winemakers and small wineries to get creative about their products, as selling in bulk does not require experimentation.
Though the wines are correct, or ‘technique wines’ as he calls them, “this is not the way European wineries make wine.” Indian wineries, more so the small ones, need to keep alive the passion for winemaking, as well as their identity to keep their place in the international market.
He has been around for 16 years in India, and knows the Indian wine industry from its infancy. The winemaker shares his concern, “I am worried. In India, we are now making ‘Technique wine’, which is to say, the process is correct. There is no spirit or art in it. There’s no passion. Only technique. It’s a story of business...”
For instance, Indian wineries are using yeast from Europe. “Is European yeast, suitable for Indian conditions? Don’t know… There is no experimentation,” he asserts. Nothing wrong with the process, but passion is wanting. It’s a business story here. Small winery will work for big winery.
"Right now I am working with Flamingo and Mountain View," he updates on his current engagements in India, and goes on to explain the dynamics that are orchestrating the unwanted change in the industry: “India is a great market for wine. International companies, Seagram and Diageo have an eye on this market, and they want to capture it anyhow. Even though they will have to share the market with Sula, UB and Indage, it is easier to kill competition from small wineries by buying in bulk from them.” Buying in bulk, they create their own blends and capture the market for their brand. This is how technique wines are selling. Flamingo has a contract with UB, and Mountain View has a contract with Diageo…
“Unfortunately, 80% of small wineries will soon be following this trend,” rues Frederic. This is obviously so as small wineries, after investing in the winery and equipment have little money for marketing. This is where Seagram, Diageo, Sula, UB and Indage come in. Eventually, most of the small wineries will be supplying bulk wine to them according to their specifications, and variety in Indian wines will be lost! “The wine of Flamingo will be the wine of Diageo,” so to say…
“The wine is correct, no doubt,” he reminds, “We are able to make good wine. But, now it is not the story of quality. It is now a business story.” In the current scenario where market powers make or break businesses, Frederic notes that, “Vintage Wines is doing well. They have high quality equipment…They are the number one of small wineries.” The fact that Vintage Wines holds its own with winsome wines sold under its own name of Reveilo, can inspire other small Indian wineries. Renaissance is also making good wine, confides the French winemaker.
The “mistake,” he repeats, “is that small wineries invest a lot of money in the beginning. Now they have no money for market. Mountain, Flamingo are in the same scenario.” Sustainability becomes a problem. So, resource management and market planning is the key to reverse the change of small winery losing identity of wines to big winery.
They are losing out because they are selling in bulk, which means cheap. They have invested in equipment and technology, but have no strategy or money for marketing, which makes working for big wineries their only bet for economic viability. In the process, experimentation with winemaking is a lost art.
Will Government support help? “The cost of making wine is very high. The government has provided some subsidy, but is subsidy good or not, I don’t know.”
The answer lies in marketing strategy and resource management. Nothing less.
Reports by Venki & Anisha Sharma
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Vintage Wines, launched in April 2006, is planning to expand its product - Reveilo - not only in India but also abroad. Yatin Patil, its co-director, informed that after having a presence in Maharashtra and Karnataka, it intends to expand into Delhi and West Bengal in another two to three months.
Internationally, it has already finalised deals with an importer in the United States. With an initial 100 cases with a price point between US$ 10 and US$ 12 for regular wine and between US$ 30 and US$ 40 for reserve wine, it is hoping for a trickle-down effect
For more details please read Indian Express
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 Deepak Roy, with 30 years of experience in the wine and spirits business is ready to launch his range of Zampa. He shares with IndianWine.com his unique selling proposition…
Quality. This single world describes the aces up Roy’s sleeve. Teamed with Australian winemaker Paul Bailey and viticulturist Gaberson, he began production at Vintage Wines’ winery last year. “We sourced the grapes approved by both our winemaker and viticulturist and got the first crush at Vintage Wines’ facilities, as our winery was not ready then. Now, we have our own vineyards and winery. The vineyards at Sanjhigaon, lie between Igatpuri and Nashik, just 6 km off the main Mumbai-Nashik highway,” informs Roy.
Zampa Valle de Vin’s vintage 2007 of Shiraz and Chenin Blanc is ready for bottling at Valle de Vin’s own winery in early February. This is vintage 2007, what of 2008? “We have 30 acres under plantation right now and are looking at adding another 100 acres,” says Roy. “In the new harvest (2008), we will continue with Shiraz and Chenin Blanc. And do another wine Viognier, also a Cabernet Sauvignon and a Blush,” he reveals. Vallee de Vin is going for a boutique image. Priced at around Rs 500 per bottle, the wines will compete with premium wines. Quality comparable with the best in the world will be their USP.
Confident of success, Roy is rolling out 250,000 bottles in the first year, while aiming at a million bottles in four years time. Roy’s self-assured attitude comes as no surprise, considering his portfolio of 30 years. He has trotted the globe selling wine and spirits and has a fair idea of what works in the global market and what doesn’t.
Reminicising on the dawn of the Indian wine industry, Roy shares, “The wine business in those days in India was very small. It is only towards the early part of 2000 that the wine industry started emerging in India. Then there were only three players: Sula, Grover and Indage.” Roy saw a lot of scope to utilize his 30 years of experience. Zampa wines from Vallee de Vin will not only be a quality product but win aces in marketing too.
Well, it doesn’t get better than this on strategy… Just when Indian consumers, especially young men and women are increasingly spending on wine and exploring its complexity and pleasure quotient, Roy is here to tap the market. Quality, competitive pricing, marketing and distribution, are part of the blueprint.
“I want to give the consumer a better quality product than currently available in the market,” says Roy, not without adding, “Among the Indian wines, my favourites are Sula Dindori Reserve and Reveilo Reserve wines. Reveilo is making very good wines, comparable with the best in the world, and my challenge is to make my wines even better than Reveilo,” with a naughty smile.
Commenting on why, Indian wines find it difficult to compete on the quality front, Roy says, “The government’s policy, especially in Maharashtra, has been to promote farmers, without a clue on how to manage the front end, how to manage the consumer... That’s where I come in.” Expertise, knowhow, research and resources define quality, no doubt.
Roy speaks of his checklist for quality: “Quality measures begin with viticulture, adopting the best practices for plantation, and restricting the yield to under 3 tonnes per acre.” India’s hot climate disturbs fermentation, therefore the harvested grapes while warm from the tropical sun are first taken to a cool room where their temperature is brought down to 4 degrees C, before they go for crushing to be turned into Zampa wines.
Considering that there are at least 10 Shiraz in the market right now, how would Zampa Vallee de Vin Shiraz be different enough to leave an impact? To this, he answers, “Quality of the wine, of course. It is a very balanced wine, very smooth to drink; not too sweet, not too dry. We have made what we believe the Indian consumer will be drinking. It is comparable to the better wines of the world.”
As the Indian wine industry has been growing steadily, what is Roy’s view of the Indian consumers? “The Indian wine consumer now has more global experience. They are travelling a lot. Imported wines are now available in India, and provide a wider wine experience. This goes to say, that the Indian consumer has a better understanding of wines, than they did before.” That is why, newer wines are available in the market, and people are experimenting. “Our marketing plans include closely targeting consumers…”
In the past 7 years, everything related with the Indian wine industry has seen growth, including Nashik’s credentials as a grape growing area. So is it time enough for a Nashik appellation? Roy states, “Rajeev from Sula has started the process. We are all working on it…”
As quality evolves to be the keyword for the Indian wine industry, appellations and due recognition will surely follow, as will still more growth. Vallee de Vin sure seems to be in tune here!
Reports by Venki & Anisha Sharma
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 Subhash Arora, president Delhi Wine Club, and recently one of the judges at India’s first international India Wine Challenge event, shares with IndianWine.com his view on India’s faring at the event and more…
For a quick overview: With 50 plus wineries in India; yet only ten of them entering the challenge may not be counted as a huge success, but that’s how it goes when things start off. Though 35 Indian wine samples entered the challenge, it was foreign labels that added the volume. 350 samples were entered in all, including domestic and foreign. The wine challenge results show that only one Indian wine made it to the silver medal, four received the bronze and eight received the seal of approval. From ten wineries that entered, five made it to the winning list. …Not bad for starters!
The young and peppy Indian wine industry is eager to improve and grow, so what better than a critic’s take on the subject? Though only 20 percent or so of Indian wineries tested the waters at the India Wine Challenge this time, the next event would see voluminous participation, assures Subhash Arora, putting it to initial fears and some amount of suspicion that people may have had earlier. Well, those who did brave the unknown are richer by media reviews, a competitive spirit and experience in the international arena. “Winners are being raved about at wine tasting events, in the media, and sales do improve…,” reasons Arora.
Well, looking at the results, one does feel that more Indian labels could have figured in there, had more of them participated! If international competition deterred more Indian wineries from participating in the first ever India Wine Challenge, would a competition only for Indian wines be the right answer? A true wine-enthusiast, Arora doesn’t think so at all: “Limiting the challenge to Indian labels would mean cheating the Indian wine consumer of a wider choice!”
A word of caution from Arora: The Indian wine industry is heavily protected, which keeps the competition low for domestic players. “They are already selling well in the domestic market, so they don’t eye exports, which are the real test of good wines.” One has heard too often from domestic wine players that exporting Indian wines is not easy on cost logistics, to which Arora replies, “though Indian wineries do face difficulty on the quality front, the pricing hurdle is less real.”
While advocating international quality for Indian wines, Arora quotes his favourite example of how Fiat and Ambassador cars, which ruled the Indian roads in protected environs, lost out completely when Maruti Suzuki entered India. Similarly, for Indian wines to do well locally and internationally, high standards in quality are essential. In fact, “export is essential for maintaining high quality,” avers Arora. “Feedback is very important,” he adds.
On that note, there’s a lot that goes into the making of a good wine -- grape varietals, viticulture, terroir, winemaker, technology, equipment, bottling, transportation… How do the judges know that the winery producing the winsome wines is doing something right there? “We can taste a lot in the bottle even in blind tastings; quality shows through,” smiles Arora. So all those keen on honing the quality of India made elixir have reason to cheer!
The Indian wine industry, though still young by international standards, can take on the world if quality takes precedence over all else. In that scenario, full attendance of Indian labels would be the norm at international wine challenges…
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India’s first International Wine Challenge, December 2007
 Robert Joseph, introducing India to its first international wine challenge feels the time’s just right for India… He’s been organizing international wine challenges since the year 1984. Currently he has 50 such events in his portfolio in places as varied as Russia, China, Japan, Hong Kong, Thailand, Australia, South Africa, India and the USA.
Robert's interest in wine began when he was around 15 years or younger. He moved to Burgundy when he was 20 years old and stayed there for the next five years to learn more about wine. On his return from France, he started his wine magazine and went on to write about 20 books on the subject. He has been writing for Wine International magazine for the past 30 years, and without doubt has a bird’s eye view on developments in the wine industry.
IndianWine.com brings nuggets of invaluable insight from the industry veteran…
Question: Why is it the time right for India’s first international wine challenge?
Answer: I have been watching the Indian wine industry for a long time now, including companies like Chateau Indage and Grover. I started the wine challenge in China in 1997. Now that India is looking for an international market, I think the time is just right for India to host its own international wine challenge.
Question: What you think about the Indian wine industry?
Answer: There is an anti-wine lobby at the states and central level, which promotes other alcoholic drinks at the cost of wine, simply because there is more money to be made in whiskey. Wine is a new industry in India, and there is a problem as it is too influenced by France! Really, no one country has all the answers, and it is a happy observation that in some other countries there is an introduction of new-world winemaking methods.
Nashik is famous for growing grapes. Yet success in growing table grapes does not represent success in growing wine grapes also. Only a certain part of Nashik is good for growing wine grapes. But, due to a lot of encouragement from the local government, areas growing table grapes are now converting to wine grapes. It is good for the wine business but not necessary for good wines. Winemakers do not get good materials to produce good wines...
Question: What is your feedback about Indian wines at the India Wine Challenge?
Answer: India should make international-quality wines. Quality control is a major problem so far. Corks are substandard, and bottles are of a bad quality even for big name companies. I have in fact been very impressed by Grover wines in the past and have believed them to be among the best in India. So I was surprised to be disappointed by the examples I saw on my most recent trip to India. I am looking forward to tasting the latest vintage and hope to find the quality I expect from this producer. I would also like to place Nine Hills, Renaissance and Vin & Vouloir alongside Reveilo and company as "promising". The first batch of Nine Hills from Seagram’s was not good. Their second batch is good; much much better…probably because of their Australian wine maker’s several visits to the vineyards. Chateau Indage needs to improve. Sparkling wines are their best bet, but there remains big room for improvement. I tasted a few imported wines at Mumbai and found them to be much better than Indian wines.
India should be very careful about their imported and domestic wines. I have heard that some Indian companies are importing juice and mixing juice with Indian wines. This is based on feedback given to me, so I cannot be sure about it. However, it is definitely happing in China.
Question:What is your view about Indian Consumers?
Answer: The Indian consumers are beginners; and are definitely growing in numbers and knowledge. In addition, more of travelling is bringing increased knowledge of wine to Indian consumers. Consumers should treat wine as a healthy drink, whereas currently many treat it as poison! To promote wine, the government should remove the crazy high taxation, so that more people have access to wines. It will do the Indian wine industry good to compete for quality. They should also taste wines from different parts of the world.
Question: Which are the best Indian wines?
Answer: Sula is the best so far, Reveilo has potential, Indus Wines, Nine Hills are good, Renaissance is also good. I am very excited about the response from India’s first international wine challenge. This is just a beginning for many more such events.
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Please click here to download India Wine Challange 2007 Results
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Even as women such as Baroness Philippine de Rothschild have long reigned in Bordeaux valley and the likes, IndianWine.com explores the role of women in the burgeoning Indian Wine industry.
 Agreed that India’s affair with wine is fairly recent, women are making their presence felt at all levels in the playing field. Kiran Patil, (1st picture) director, Vintage Wines, handles marketing and sales for her company. Violet Dsouza, director, Indus Wines, is a keen participant in her winery operations from planting to harvesting, pressing and the rest. She handles sales and marketing simply because, “no marketing manager would know my wine as I do,” avers the passionate wine-enthusiast *** entrepreneur. Dsouza reasons that traditionally, the wine business grew from family held estates, where the entire family was cued into every aspect of winemaking, women and children included. It only follows that women should show more spunk as participants, here as well.
 Dsouza,(2nd picture) while enjoying assisting her winemaker John Worontschak, observes, “India is new to winemaking, therefore it will take time as Indian men and women gain repute as winemakers.” Meanwhile, marketing, and event management as in wine tasting shows, etc. sure has women takers.
Patil agrees that women are showing up in frontline marketing and sales operations. Speaking of herself, she reveals that she joined the company to work for husband, Yatin Patil. Now that sounds familiar…women in traditional-wine-producing-regions were always part of the family enterprise. Well, then India is right on track. What say?
With marketing operations divided into selling to retail shops and institutional sales, women find it easier to deal with institutions, while the guys handle the retail sales, informs Patil. “Women sommeliers are on the rise in India, though I am not aware of any Indian ladies training as sommeliers so far. The ones I know are European. But with the wine industry seeing greater developments by the day, I am sure more Indian women will be seen as sommeliers as also in marketing,” shares Patil.
Though women have been around for some time now in the Indian wine industry, considering that the Indian liquor industry is older but has fewer women participants, (those too in subordinate roles,) the distributors who are usually the same for the liquor and wine industry, are yet to take in the reality of women entrepreneurs. Shares Dsouza, “When I visited distributors, one was convinced that I was co-owner of my company only after several questions he put to me. He was surprised that a woman could be co-owner of a wine company and to boot, be highly aware of the minute details of winemaking as well. He was equally surprised that being a co-owner, I chose to visit distributors myself!” Well, that’s how women are, totally involved in the nitty-gritty of their business.
 Wine importer Neethu Sheth,(3rd picture) operating from Mumbai, and dealing in exclusive, premium wines from South Africa is as passionate about her business as they all go. “Being a woman in the wine industry has a slight advantage,” shares Sheth. Wine is a ladies’ drink, true, so it only makes sense for women to be in the trade as well. Sheth confesses, “Being a woman, people are more inclined to listen and taste your wines,” and sales are won through the tasting of good wines. From Directors of wine companies, to marketing heads, event managers for wine events, sommeliers and assistant winemakers, women are everywhere in the trade that essentially sold wine to women before the global revolution in the wine world began claiming wine-enthusiasts from across board.
The Indian wine industry may be young, but women of India have sure broken through the glass ceiling. Going by Kiran Patil’s prophecy, “The global wine industry is developed, so we see women there. When India develops the wine industry more, more women will be seen here as well.” But, of course!
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