UB to replicate beer strategy for wines

The UB Group, which is an established leader in the Indian beer and spirits market, is aiming to replicate its success by addressing the wine market with its two companies - United Spirits and United Breweries.

While United Spirits, the spirits arm, will be actively involved in retailing high-end bottled wines and also pushing sales through its premium hospitality chains United Breweries, the beer major, will aim to take wines to the pub goer.

UB Group president and chief financial officer Ravi Nedungadi said that modalities are being worked out for this strategy between the two companies and this will bring in a good amount of sales.

"A pub hopper for a change might ask for a red or a white wine and may not necessarily be keen on the heritage of the vineyard. He may just want to have a good wine, irrespective of the brand. United Breweries will address this target as Kingfisher beer is already strong in the pub-segment," Nedungadi added.

According to him, the sourcing of the wines may not necessarily be the same between the two companies.

United Spirits, on its part, is setting up a winery at Baramati in Nashik, Maharashtra and is targeting the on-premise premium retail play.

Noting the increasing number of franchises for wine in India, the company recently acquired Bouvet Ladubay, a premium French winery, and has started introducing some of this wine in the Indian market.

"United Spirits will target the connoisseur and offer him the best of wines. The company has initiated a multi-pronged strategy to achieve market leadership in this space, through a combination of imported and domestic wines," Nedungadi said.

The wine market in India during the past couple of years has been growing aggressively with boutique wine firms such as Grover Vineyards and Sula Wines making decent inroads against stiff competition from imported brands. Nashik in Maharashtra and Doddaballapur on the outskirts of Bangalore are proving to be good locations to harvest wine grade grapes in India.

UB Group however, is not keen on taking the acquisition route in India.

"As of now, we are building the business organically. With UB Group entering the wine market in a major way, the market will grow healthily and there will be space for a few established players," he said.