With per head consumption of just half a teaspoon of wine as against 20 litres per head in Britain, the world's second most-populous country is a promising wine market.

While local players are including affordable imported wines in their portfolios to hook new consumers, foreign firms are trying hard to expand in the market.

United Breweries, the most recent entrant in the imported wine segment, is selling wines sourced from South African vineyards under the Bohemia Wine brand. Aiming to tap the price-conscious home-consumption market, it has priced its wines at Rs 500 and beyond.

“There will be enough supplies of reputed imported wines costing between Rs 550 and Rs 700 which may eat into the sales of Indian wines.”

Indian producers are expected to either fight back by offering higher discounts or push their own portfolios of imported wines in an effort to lock in the customers. Just as Sula has done with the French Pierre Maison, and Vinner Wines with Italian Opera, United Breweries is importing wine and packaging it under its own label. It currently imports wine from Cape Floral Kingdom, South Africa, and the brand is not ruling out the possibility of adding more wines from New Zealand, Australia and even Chile.

More: Business Standard