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Presentation to French Exhibitors Indian Wine market: Trends, Opportunities & Challenges Vikram Achanta 2 nd December 2008 Contents Trends Opportunity Conversion Barriers Recommendations Positive Trends Growth of domestic wine industry Evolution of Indian consumer

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Presentation to French Exhibitors

Indian Wine market: Trends, Opportunities & Challenges

Vikram Achanta

2nd December 2008


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Contents

  • Trends

  • Opportunity

  • Conversion Barriers

  • Recommendations


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Positive Trends

  • Growth of domestic wine industry

  • Evolution of Indian consumer

  • Hospitality industry growth

  • Retail Re-evolution


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Growth of Domestic Wine Industry

  • 15+ active producers contributing to around a million plus cases

  • Major producers expanding capacities

  • Large players investing in the market – Pernod Ricard, UB Group, Diageo, Moet Hennessy

  • Indian wine companies exporting wine and also making global acquisitions


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Growth of Domestic Wine Industry – India Wine Challenge 2008

  • 2nd Edition

  • 501 entries from 16 countries with 76 entries from India

  • Mix of International and Indian jury

  • Indian wines – 3 silver medals / 5 other medals




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Evolution of Indian consumer example

  • Evolution over a 10 year period

  • Growth of wine societies and wine clubs

  • Spread into smaller cities also – Pune, Chandigarh, etc.


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Retail re-evolution example

  • Liberalized licensing norms

  • Emergence of modern trade

  • Liquor shop chains emerging

  • Modernization of independent retail shops and state controlled retail



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Retail Re-evolution - Travel Retail Growth example

  • Airport modernization and establishment of new international airports

  • Dissolution of public sector monopoly and entry of international operators

  • Rapid growth in passenger traffic

  • Intense focus by liquor industry on this segment


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Hospitality Industry Growth example

  • Growth of food and beverage outlets

    • High quality free standing outlets

    • Growth into tier 2 and tier 3 towns

    • Emergence of specialty outlets

    • Manpower quality improvement

  • Wine Bars emergence with decreased license fees

    • Entry of wine companies – Indage, Sula, UB


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Contents example

  • Trends

  • Opportunity

  • Conversion Barriers

  • Recommendations


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Opportunity example


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Contents example

  • Trends

  • Opportunity

  • Conversion Barriers

  • Recommendations


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Conversion Barriers example

  • Wine is not for me

  • Wine = Celebrations only

  • I don’t understand wine / can’t pronounce names / read the labels

  • How do I Open the bottle


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Contents example

  • Trends

  • Opportunity

  • Conversion Barriers

  • Recommendations


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Recommendations example

  • Make Wine Accessible

  • Catch them young

  • Focus on education