August 2009 - Posts
In a major push to the wine industry, the state department of industries has extended the excise duty holiday on grape wine processed in
Maharashtra by another 10 years, till December 31, 2021.
Pradeep Patil, wine-maker at Sula Wines, said, "The wine industry was growing at 25 to 30 per cent per annum
till the recession and Mumbai terror attacks happened. The duty holiday till
2021 will enable the industry to overcome the negative impact of these two
events and explore the huge potential for the developing wine market."
Jaideep Kale, technical coordinator (wine industry) at the
Maharashtra Industrial Development Corporation (MIDC) said, "Wine-makers had
been pursuing such an extension for quite some time now." The excise duty on
liquor products is quite high, he said, adding that a similar duty on wine would
have meant a steep hike in the cost of a wine bottle. "Already, reducing the
cost is one of the key challenges in terms of inducing greater sales. The duty
holiday will help the state's wine-makers boost their sales," he said.
Most wine-makers, however, feel that the duty holiday needs
to be backed by apt policy measures for promoting wine culture through awareness
drives. "We are still a whiskey-drinking nation," says Violet D'Souza, director
of Terroir Wines, Nashik. Sula's Patil concurred, "The general tendency among
alcohol consumers is to drink till they get a kick. Few look at wine as a drink
with health and social benefits."
"The duty holiday extension will benefit only those who process and sell wine in
Maharashtra. Sates like Madhya Pradesh, Karnataka and Andhra Pradesh as well as
Tamil Nadu follow different policies vis-a-vis excise, VAT and licence to sell
wine. A uniform approach can go a long way in boosting industry sales."
She said, "Wine is still treated as part of the alcohol industry,
which is bound by excise laws. We cannot sell wine across the counter at grocery
shops, which can benefit small wineries. Shopping malls that are licensed to
sell wine, tend to selling select brands of their own choice."
More: Times of India
Diageo has ended talks with United Spirits because the two sides could not reach agreement on the
purchase price. Diageo stated that it would investigate other ways of expanding its
business in India
More: Trading Markets
Federico Ceretto, the third generation owner of
Ceretto Wines (from Piedmont, Italy), a super luxury brand, was in Mumbai recently. Ceretto Wines have inked a tie up with India’s Aspri
“We have, in over 70 years made our wine an ambassador of
Piedmont and Italy throughout the world,” relates Federico Ceretto. Coming to India now seems to make perfect sense, despite the
global econimic slowdown. “India is a growing market for wine and we
wanted to be present in India at the right time so that when the market
size increases, we have part of the pie.”
Outlining his business strategy, Ceretto said,
“It is very important to have right partners especially in challenging
times like the present. This tie up will help us to target the right
customers across India for our wines.”
Ceretto Wines is coming to the Indian market with
as many as seven labels of its wine covering all the important
appellations of the Piedmont region — Ceretto Bricco Rocche, Brunate Barolo, Ceretto Bricco Asili, Bernardot
Barbaresco, Ceretto Zonchera Barolo, Ceretto Asij Barbaresco,
Ceretto Monsordo Langhe Rosso, Ceretto Blange’ Langhe Arneis, and
Ceretto Moscato d’Asti. All of them will soon be available in 10 cities
More: Indian Express
The Indian market for spirits is one of the largest in the world, amounting to 190 million cases of spirits, wine 1.5 million cases and beer 150 million cases.
Rising mercury levels and soaring election campaigns are leading to increase in liquor sales in southern India. Beer lovers are guzzling 31,000 litres each day leading to demand shooting up by nearly 30 per cent according to Andhra Pradesh Wine Dealers Association, there are over 350 wine shops and 50 bars and on an average, each shop registers a sale of 10 cases of beer (a case of 12 bottles) everyday – a staggering 45,000 bottles a day. Yet there is a huge gap between demand and supply. Not only beer, there is also good demand for other alcoholic drinks like brandy and whisky, especially the cheaper brands.
Each wine shop has a regulated supply of 20 cases a day and it is tough to meet the demand, particularly from different political party activists, informs another dealer. The demand is much more on the city fringes and dealers expect the sales to surge further when the polling day becomes nearer.
According to Andhra Excise officials sales from the authorised liquor shops in the four coastal districts in AP account for 60 per cent of the total revenue collection while the belt shops account for the remaining 40 per cent. Nellore district registered a record sale of Rs.46.07 crore in March alone, almost 60 per cent more than the sale in February.
In fact the sale of liquor in Nellore was the highest in March for the past four months with February accounting for the least, Rs 27.58 crore. In Prakasam district, the liquor revenue shot up to Rs 29.59 in March from Rs 20.56 in February. In Guntur district, the revenue increased by nearly Rs five crore in March while it jumped up by Rs three crore in Krishna district.
Karnataka liquor revenue spurt Meanwhile over the last eight months, Karnataka has seen a sudden doubling in taxes collected from the liquor industry. Liquor revenues, which had stagnated at Rs 45-50 crore per month for the last five years, have jumped to Rs 95-100 crore per month. An additional Rs 400 crore in revenues has been mobilised by the state since the setting up of the Karnataka State Beverages Corporation Ltd (KSBCL), The state’s revenues from liquor also suspiciously never increased, though the demographics showed that the population was growing, drinking was on the rise, and more pubs were coming up. Companies maintained that their total sales were an 18 lakh litres a month, yielding Rs 450-500 crore a year.
KSBCL became the single agency for all liquor sales in the state. Every company has to sell to KSBCL, which in turn sells to the distribution channel. This was done to effectively contain revenue leakages, which were an estimated Rs 1,115 crore. The Karnataka government also announced a reduction in taxes by around 50 per cent across all price bands. The strategy of lower tax rates to widen the tax net paid off and today, the state sees a sale of 70 lakh litres per month (up from 18 lakh litres earlier).
While all four southern states have similar outfits for liquor distribution, the latest one in Karnataka has gone a step further to say that it would not interfere in the market. For instance, unlike Tamil Nadu, which does not allow sales of any imported liquor either from abroad or from other states, Karnataka is an open market. Anyone can come in and register themselves to sell. The corporation is not taking a strict regulatory role, and the commission it charges is a nominal 2 per cent to allow it to run its operations. In other states, charges total up to 10 per cent. The corporation is planning to tie up with CFTRI to keep a check on quality.
Industrial Sales Details for the month of March 2009 Top 10 Brands in Each Category, Karnataka State
Sopexa is launching two city retail promotions
'Savour France' between August 29 and September 6, 2009. The events
will be conducted in Mumbai and Bengaluru. “The event will focus on
wine and cheese tasting. It will ensure incentivised purchase of the
products,” mentions Tarun Sibal, Marketing Project Manager, Sopexa
India. It has tied up with Nature’s Basket to conduct the promotions
across its four outlets in Mumbai, while the promotion in Bengaluru
will be conducted in Spar Hypermarket.
More: Hospitality Biz
Vinbros, a Pondicherry based liquor company that sells the entire range of
alcoholic beverages in South India as well as Europe and West Asia, is hopeful
of foraying into the North American market before this year end.
It has a manufacturing tie up with the
U B group of companies, and sells the entire range of alcoholic beverages
– rum, whiskey, brandy, gin, wine etc – in the southern states, to
the canteen stores department in various states and the border security forces
in the northern frontier. The company makes
in-house the Royal brand of premium alcoholic beverages, and also bottles some
imported brand of liquor like the Chateau Bouscaillous red & white wines in
partnership with P&P Import Export of France under the trade names of
Warehouse red and white wines.
The company, which clocked
a turnover of Rs.60 crore for the financial year 2008-09, exports 50% of its
produce, mainly to Europe, and some brands to West Asia and Sri
It recently received the Silver Trophy award from the
Agricultural and Processed Food Products Export Development Authority (APEDA),
of the government of India.
More: The Economic Times
Australian Trade Commission organizes trade delegation comprising of F&B importers and distributors; hospitality chains and food processors to explore sourcing and business tie-ups with Australian firms.
The Australian Trade Commission – Australian Government’s international trade & export facilitation agency is organizing an "Australian buyers trade mission to Fine Food Australia 2009" – exhibition for the food, beverage and hospitality industry in Australia. Fine Food Australia 2009 is being held between September 7-10, 2009 at the scenic city of Sydney.
Featuring more than 1,000 companies, ‘Fine Food Australia 2009’ is a significant industry event in the southern hemisphere. Fine Food Australia showcases the latest innovations in food, drink and equipment bringing together buyers and sellers from around the world, with feature areas focusing on bakery, confectionery, dairy, drinks, meat & seafood, natural products and equipments for retail, catering and hospitality.
Australia enjoys the reputation of a high quality supplier of fresh & innovative food products and Fine Food Australia offers the Indian food retail & hospitality trade the opportunity to source & distribute high quality Australian food, drink and equipment.
The Australian Trade Commission is organizing a trade delegation of Indian buyers and the Australian Trade Commission invites participation from the Indian food retail & hospitality trade, representing airlines, restaurants, retail chains, distributors, food manufacturers and producers, hotels, importers, traders, supermarkets & wholesalers to participate in the "South Asian Buyers Trade Mission to Fine Food Australia 2009".
The Australian Trade Commission offers the Indian buyers targeted sourcing opportunities with over 800 Australian suppliers; introductions & business meetings for the Indian buyers with Australian participants & suppliers at ‘Fine Food Australia 2009’.
Why should you participate?
• In 2008, 1,782 buyers from 60 countries, including 300 as part of official missions hosted by the Australian Trade Commission, wrote over $32 million in export orders at Fine Food in Sydney and that was just the value of deals actually concluded at the show.
• Discover the clean and green products for which Australia is recognized
• Meet suppliers and industry contacts
• Develop an understanding of the market first hand
• Receive on-the-ground assistance and advice on how to successfully operate with Australian companies. Visitors will be able to see and taste thousands of new food and beverage ideas in the Fine Food exhibition, and try out the latest equipment in Hotel Australia. There are special sections for bakery, confectionery, dairy, drinks, meat & seafood, natural products, hotel supplies, catering equipment, packaging, retail equipment and convenience world.
For more information on Doing business with Australian food companies and for participation in the Australian Buyers Trade Mission to ‘Fine Food Australia 2009’, contact Mr Gitesh Agarwal, Business Development Manager, Australian Trade Commission, Chennai at 044-42970002 or at firstname.lastname@example.org
Ecole du vin de Bordeaux ( Bordeaux Wine School ) is coming to Delhi, Bangalore and Mumbai, for the first time, to select potential candidates to become one of the first accredited trainers for Bordeaux in India. In October 2009, L'Ecole du vin de Bordeaux will hold three different seminars for F&B professionals, wine importers and wine educators in Delhi (on October 23 and 24), Bengaluru (on October 26 and 27) and Mumbai (on October 28 and 29).
More: Hospitality Biz
Sale of imported liquor like wine, champagne and whisky has come down by 70 per cent in Delhi after their prices went up sharply due to an increase in local levies by the Delhi government.
The Delhi government raised taxes on imported liquor in June. It
fixed the sales tax on imported liquor priced above Rs 2,000 a bottle
at 30 per cent, while those priced below began to attract 20 per cent.
Earlier, the local tax on imported whisky, wines and beer was a flat
Rs 300, Rs 150 and Rs 30 per bottle, respectively. The Delhi government
earns Rs 1,100 crore in excise revenue from liquor sales every year.
“There has been an absolute showdown in the offtake of imported liquor
since June. Demand is down by as much as 70 per cent and more people
are turning to the grey market to source it cheaper. Instead of
bringing in more revenues, the new taxation will bring less. We have
had a dialogue with the Delhi government and it is looking into the
matter,” said Amrit Kiran Singh, chairman of International Wine and
Spirits Association of India.
More: Business Standard
The promoters of Indage Vintners Ltd, one of India’s earliest wineries, have pledged at least 97.9% of their 25.42% stake in the company, an August analyst report of Bank of America Merrill Lynch said.
The pledging of almost all the shares of the Chougule family marks a dramatic decline for the firm, which is short of working capital and has mounting debt due to overseas acquisitions.
A slowdown in the domestic market, where wine sales declined in the
past few months, has also contributed to the tight financial position
in the company.
Indage’s slide is also illustrative of a growth strategy gone wrong.
Indage, formerly known as Champagne Indage Ltd, acquired three wineries
in Europe in less than a year between 2007 and 2008 for approximately
“These overseas buys had resulted in a huge
financial trouble for the company as these acquisitions did not deliver
the expected revenue and also due to some previous liabilities of these
entities that was to be paid off by the company,” said an executive
who is leaving the firm.
In India, the company has vineyards on around 2,500 ha and wineries in
Nashik, Maharashtra, and Himachal Pradesh with 20 varieties under
commercial plantation and at least 137 varieties under nursery
cultivation. It has at least 10 offices and around 700 employees
With the initiative of Hotel Management department of Christ University and United Vintners Limited
(UB Group) there is now a year long diploma in wine tasting for the
first time in India.
The course consists of three phases,
foundation, intermediate and advanced levels. International experts and
professors from the Hotel Management department of Christ University
would be conducting the course.
fee for the diploma course is Rs. 1 Lakh which is inclusive of tasting
approximately 120-130 varieties of world class wine. Coupled with it
all, one also gets to visit the Four Seasons Winery in Rotti village,
The course looks not only into the theoretical aspects but also the
industrial aspects of wine tasting. The goal of the course would be to
develop expert knowledge of the principal wines of the world and the
commercial factors that influence its manufacture and sale using a
thorough system for the professional evaluation of different varieties
The curriculum will be covering a range of related subjects including
the history of wine, the marketing of wine, the wine regions of the
world, viticulture (grape varieties) and vinification (wine making),
types and styles of wine, understanding wine labels, understanding
quality designations, wine service and storage, food and wine pairing
and responsible consumption. Tasting will form a fundamental part of
There are a lot of options like that of a taster, wine promoter and marketer.
The course commences on the 17th of August but admissions to the course
would be open till the estimated admission of 20 individuals is
over. Admission forms are available at Christ University. Classes will be
held thrice a week every Monday, Wednesday and Friday from four to six
in the evening.
For more information contact Jayakumar V at 9845999737
More: My Bangalore
At Vinitaly 2009, Aspri Spirits signed an exclusive agreement with Mollinari for its brand Sambuca. Jackie Matai in a free wheeling chat unveils the company future plans to Vincent Fernandes.
For Aspri Spirits, its sojourn in the business under this banner has been an eventful one. It is now using the recession period to replenish their portfolio to help consolidate the company position as a leading liquor importer, distributor and marketer. Its current portfolio has wines at all price points ranging from Rs.400/- to Rs.20, 000/-. The company is now ready to introduce the Sambuca brad in India. With the taxation on imports rather high the company has opted to market and distribute Indian wines. The company has signed an agreement with Terroir India Pvt. Ltd to market and distribute their brand “Indus Wines” in India and international markets. Says Jackie Matai, one of the founders of Aspri Spirits, we have evaluated their wines and found them to be of exceptional quality. The packaging is also unique giving us a competitive edge. This is the first tie-up that the company has done with an Indian wine producer.
The agreement is expected to be for an initial period of five years. For Indus Wines they can concentrate on the business of producing wines while Aspri’s all India footprint will extend their presence to markets beyond just Maharashtra where they were initially present.
Indus wines’ labels include – Indus Vineyards premium Shiraz 2006 (Red wine), Indus vineyards Cabernet Sauvignon 2007 (Red wine), Indus vineyards Cabernet Shiraz 2007 (Red wine), Indus Vineyards Rosé 2007, Indus Vineyards Chenin Blanc 2007 (White wine) and Indus Vineyards Sauvignon Blanc 2007 (White wine).
The pricing of these labels will vary from state to state depending upon the local excise structures. In Mumbai the MRP for Indus Sauvignon Blanc is Rs.540/-, the Chenin Blanc costs Rs.420, the Rose is priced at Rs.540/-, the Cabernet Shiraz at Rs. 540, the Reserve Cabernet Sauvignon at Rs.638/- and the Reserve Shiraz at Rs.840/-.
Earlier Aspri launched South Africa’s premium wine brand Nederburg Wines in India. The range is available in three different variants — Shiraz, Pinotage and Sauvignon Blanc. Available in 750 ml pack each, the ranges Shiraz, Pinotage and Sauvignon Blanc are priced at Rs 2398, Rs 2398 and Rs 2167 respectively.
Nederburg is a part of Distell group and counts for about 40 per cent of winemarket share in South Africa.
To augment its spirits portfolio Diva Cachaca — has been launched by Diva Distilleries and will be distributed by Aspri Spirits who expect to sell 500-600 cases of Diva Cachaca in its first year.
To cater to the sweet tooth of Indians ASPRI Spirits Private Limited has recently introduced AMARULA, a premium fruit based cream liqueur brand from South Africa based Distell Group. Amarula is made from a sweet and luscious fruit grown in Africa, called the Marula.
Taylor and Shroff has also partnered Aspri Spirits for marketing and distribution of its wines -- White, Apricot, Red, Cherry and Ginger across 5,800 outlets including bars, liquor shops and hotels across the country. Eyeing a turnover of Rs250 crores (35 million pounds) by 2012, UK-based wine maker Taylor and Shroff (T&S) is foraying into the Indian market with a diverse portfolio including beer, rum, wines and whiskey. Aspri Spirits Pvt Ltd has developed one of the largest sales and distribution networks in India covering over 22 states.
It has developed a three model system which includes imports, distribution and logistics to enable international companies to tie-up with Aspri spirits for any one, two or three options. Says Jackie, “We prefer to deal directly with the company offering our services for import, distribution and logistics. Sometimes change in company personnel can cause disruption in operations especially if the brand was to move from one marketer to another.”
The company also has a wide range of spirits in its portfolio which include whiskies like Cutty Sark, Dewar’s among others, Rums like Bacardi which it distributes in 15 states, Vodkas like Skyy, Grey Goose, Below 42, Tequilas like Jose Cuervo and El Camino Don Angel. Recently at Vinitaly, Aspri Spirits signed an agreement with Molinari for its Sambuca brand of liqueurs. In the brandy segment, the company has the Faucionnier Napoleon Brandy VSOP.
The wine portfolio comprises of wines from Borboro & Martin Fiero (Argentina), De Bortoli (Australia), Ventisquero and Sole de Chile, Olivier Leflaive, Chateau de Fontenille, Domaines Lapalu, Domaines Paul Mas (France), Sieur D’Arques (Simoux), there are also two wine labels from Obikwa. Its Italian wine portfolio comprises of wines from Cerreto (Piedmont region) and Zonin.
Four Seasons Wines Ltd (FSWL) - a subsidiary of
United Spirits Ltd (USL) and part of the UB Group, has officially
unveiled its Four Seasons varietal wines at ITC Windsor, Bangalore.
The wines are produced
at the UB Group's state-of-the-art winery at Baramati (Maharashtra)
with grapes selected from vineyards in the Sahyadri valley. The winery
is modelled on a French chateau. A Kewadkar, chief winemaker and
business head of FSWL, said, "The Four Seasons wines have been styled keeping in mind the
tastes of the Indian consumer and the diversity of Indian cuisine."
Four Seasons wines have also been tasted and lauded by world renowned
wine experts like Steven Spurrier (wine expert and editor of Decanter
Magazine), Jacques Puisais (French wine expert & author, VP &
Co-Founder - The Institute of Taste, France) and Bruno Li Paumard
(French wine expert and master Sommelier).
More: FnB News
The Sommelier India Wine Competition (SIWC) in association with
The Wine Society of India is being held for the first time in Mumbai on 19 & 20 November 2009 at the ITC Grand Central, Mumbai.
SIWC is an Indian competition created by Indians, and judged by the best Indian palates for the
benefit of the Indian consumer.
The objectives of the competition are to provide an independent forum where domestic and imported wines
available in India can be judged and rated by an independent panel of wine experts.
The provision of bottle stickers showing the award received will provide easy recognition and identification of the winning wines. This will give the Indian consumer an easy‐to‐understand reference guide to what are the best wines available in the Indian market in order to make better buying decisions, both at retail as well as restaurants.
The distinguished panel of judges is headed by world‐renowned wine expert, Steven Spurrier, who knows India well and is the chairman of The Decanter World Wine Awards, the world’s largest wine competition (10,000 labels entered), as well as The Japan Wine Challenge, the largest wine competition in Asia.
The judging panel comprises experienced wine tasters and experts who are knowledgeable and passionate about wine. As an Indian competition for the Indian market, the SIWC panel of judges are predominantly Indian or international wine experts based in India. The wines will be judged ‘blind’, ie, the label will not be visible, ensuring that the judging is fair and honest.
SIWC is already being heralded as an India organized world‐class wine competition and a transparent platform to advise and guide the Indian consumer and trade, alike, on wine choices.
“The Indian wine market is flooded with wine brands from all over the world and Indian consumers are looking for a voice that can guide them with their purchases. The Sommelier India Wine Competition gives the Indian consumer the power to make an informed decision,” said Steven Spurrier.
“SIWC will help consumers decide between the good and the not‐so‐good or the good and the excellent, when selecting wine,” said Reva K. Singh, editor of Sommelier India – The Wine Magazine. “An Indian wine competition is a logical step for a publication dedicated to fostering the wine lifestyle in India and I see SIWC as a force for good in the Indian wine market.”
For more information about the Sommelier India Wine Competition
Mr Nikhil Agarwal
Sommelier India Wine Competition
1407 Maker Chambers V
Mob: + ( 91) 98207 04500 Fax:+ (91) 22 2285 2288 Email: email@example.com
|Maharashtra government has in effect de-linked wine from liquor while issuing the gazette notification for reducing the VAT from 25% to 20% through the finance department while it continues to remain at 25% for liquor.|
|The state had announced an increase in VAT on liquor to 25% last month. This had created uproar amongst the wine producers of Maharashtra who approached their godfather, Mr. Sharad Pawar, Minister of Agriculture in the Central Government in Delhi . Not only did he make the department see the logic of rolling it back to 20%, he also convinced the state agriculture department to give a subsidy of 16% to them so that the real VAT chargeable came down to 4% from this increased 25%.
The official notification dated August 1 was released yesterday. As it turns out, the department had their hands tied. In their records, they had only two categories of alcoholic beverages, liquor and beer-no wine. So when the VAT was increased on liquor, wine became the hapless victim as it was clubbed with liquor.
Now the rules have been amended to separate wine from liquor. Schedule D of the Maharashtra Value Added Tax 2002, delinks wine from liquor in the Maharashtra Foreign Liquor Rules 1953. This has enabled them to insert a clause 3A which reads, ‘Wines as defined from time to time, in Rule 3 (6)(1) of the Bombay Foreign Liquor Rules 1953 and in rule 3(4) of the Maharashtra Foreign Liquor (Import and Export) Rules 1963’-the VAT is herewith reduced to 20%.
It is the later part of the section which allows the reduction of VAT on the imported wines as well.
Click here for the Notification