Premium Italian wine makers, including Caviro, Cavit, Cantine and Geograficao, are exploring the possibilities of entering India, one of the fastest growing wine markets in Asia.
"The Indian market is expected to be among the best performing markets for wine in the coming years," says Marco Toti of Geograficao, part of the Italian wine delegation that is in India to explore the possibility of entering the market.
The Indian wine market is on an expansion spree and is soon expected to catch up with China and South Korea, which are the growing markets in the Asian region, in addition to Hong Kong and Japan, both of which are matured markets.With the UK, the US, and Germany reaching saturation point in wine consumption, wine makers are now scouting for new markets in the Asian belt. Currently, Japan accounts for nearly 28 per cent of the wine consumption, while China and Hong Kong account for 60 per cent, Toti said.
According to industry estimates, India imports over 2,00,000 cases of wine, with 35 per cent being from France, 20 per cent from Australia and Italian wines accounting for 15 per cent, Alok Chandra, a Bangalore-based wine consultant, said. Wine imports are growing at 25 per cent CAGR (Compounded Annual Growth Rate), he said.
High-end Italian players are now scouting for importers and distributors to market their brands in India and also exploring tie-ups with leading retail chains to sell their products to the growing wine consumer segment.
"We are looking for an importer and distributor to enter the market," says Laurao of Cantine Due Palme, who is part of Opera, a consortium of cooperative agricultural enterprises and Italian Food farming Institutions, here in India to build awareness about Italian wines and agro-products."We are keen on foraying into the high-end segment and talks are on with leading retail chain stores to showcase our products," Cavit Area Export Manager Henrieta Schubert said.
"Our company is also tapping five-stars and restaurants, which are among the top buyers of the products, in addition to talking to premium retail units," Toti said.However, the greatest hurdle facing wine exporters is the prohibitive import duties, which is over 150 per cent, said Alberto Motto, sales executive, Cantine Disoave, which entered the Indian market two years ago.