Expanding
the cellar
Ranjit
Chougule, in conversation with Latika Sakhuja, elaborates on Chateau
Indage’s strategy to set up wine bars to popularise wine drinking
in India
As
consumer demands are changing and the retail environment is becoming
more competitive, there is an urgent need to strategise growth policies.
Chateau Indage took the initiative of setting up wine bars to capitalise
on the expected increase in demand. Ranjit Chougule, Executive Director,
Chateau Indage, provides an insight into the initiative and stresses
that wine is truly an ‘any time, any place’ drink.
Could you elaborate on the wine portfolio that
Chateau Indage offers?
Chateau Indage is one of the pioneers of authentic wines in
India. We produce a rich variety of exquisite red, white and sparkling
wines. The company now offers over 32 labels of wines like Chantilli,
Riviera, Marquise De Pompador, Vin Ballet, Figueira, Ivy Brut, Ivy white
Zinfandel and Zulu Pinotage, and enjoys 80-85 per cent of the total
market share of the wine industry in the country.
Metros and semimetros in India are increasingly
seeing a growing number of wine drinkers. With this growth in demand,
what are the measures taken by Chateau Indage to strengthen its retail
base?
The wine segment is growing every year with an average growth
rate of 25-30 per cent per annum. To capitalise on the increase in demand
and strengthen our retail base, we felt the need to be closer to our
consumers and took the initiative to set up wine bars. This is essentially
a strategy of forward integration. As a company, we need to control
the way in which our brands are presented and retailed and specifically
sold in the ‘on trade segment’, which is consumption on premise,
especially in the state of Maharashtra.
What makes Maharashtra a more favourable location,
as compared to other states, for setting up wine bars?
In the year 2001, a wine policy was introduced in Maharashtra
in which there were different sets of licenses for setting up wine bars.
A liquor license in the state costs more than Rs 6,00,000 while the
licence fee for setting up a wine bar is Rs 37,500. In smaller villages
with a population of less than 1,00,000, the license fee is even lower.
At Narayangaon, where we have an estate, the license fee is only Rs
5,000 per annum. As a result, the policy aids us in promoting wine in
areas where it’s never been served before and in making it affordable
for all segments of the society.
What is being done to promote wine drinking in
other states across the country?
Maharashtra is the only state so far that has such a liberal
policy for setting up wine bars. Other large wine consuming states like
Delhi and Karnataka do not have a favourable, or even an independent
wine policy. As a result, wine is expensive in these areas. In Delhi
and Karnataka, wine falls under the same policy as other alcoholic beverages.
Although grocery stores in Delhi will be allowed to sell wine soon,
this will be only for ‘off premise’ consumption. We are working
with various state governments to introduce a similar policy, so that
wine can be made more affordable for everyone....
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