Wines
of change
Binny
Sabharwal spoke to Arend MA Heijbroek, Global Industry Specialist (wine
and spirits), Rabobank International, on the influx of global wines
in India
In
the past few months a bevy of new world wines have hit the Indian market,
including Californian and South African wines, among others. What are
these new world wines and why this sudden furore in the market?
First
let me explain what are old world wines. These are wines from Europe
and traditional wine producing countries, which have their own environment
that renders a particular taste to the wine, recognisable with that
particular geographic location. The wines are very sensational, and
come from an industry which is highly protected by government regulations.
It is a huge industry that still represents a sizeable part of the world’s
production and was even more important in the past as it monopolised
the international wine market. In the last 10-15 years, there has been
an emergence of wines from other countries outside Europe from markets
that are more modular and not subject to the restraints of legislation,
as in Europe.
These countries include the United States, Chile, Argentina, South Africa,
Australia, and New Zealand. As already mentioned, the environment in
all these emerging markets is much more liberal. This means that the
companies can really provide what the market warrants in terms of size
and in terms of brands as branding is extremely important for wines
from new world countries. Most of these countries make wine, which is
easily accessible for the consumer as much more attention is paid to
retain the fruit flavours and sugar, making it easier for the new wine
consumers to understand these wines.
On
the other hand, traditional European wines have been reluctant to any
change in the consumer’s behaviour. Besides European wines in the top
quality segment, which are to some extent smooth, are less easy to understand
and, for a lot of consumers, also a bit harsh in the mouth. But these
are the wines that come with much more character, more structure and,
therefore, an automatic preference with the wine connoisseur. But most
of the consumers throughout the world are new consumers and therefore
they prefer wines that are easy to understand and easily accessible.
Hence, new world wines in that respect are much more attractive to new
consumers all around the world.
The
Indian palate is more accustomed to spicy foods. How well will these
wines go with the Indian cuisine?
I have raised this issue in the discussions I have had with certain
Indian wine companies and I understand that this research has not been
done properly yet. That is, the correct relationship between Indian
cuisine and different styles of wine still needs to be established.
It may even be that the emergence of wine consumption in India may not
be related to food – wine may actually be more of a social drink.
Do
you think that a wine culture really exists in India?
I think that the wine industry has a potential in India. If we take
a clue from several markets in the world, which are not traditional
wine markets, it shows that the consumption of spirits is coming down
and wine consumption, particularly quality wine, is increasing. Wine
is very much related to health; it is a complete lifestyle drink which
can be an extension of the consumer’s personality. But it is true that
wines are somewhat less easy to understand than spirits, making it difficult
for the consumer to relate with them initially. Each wine is different
so one should learn to appreciate it, but a lot of the Indian consumers
are not educated enough when it comes to wines and its various characteristics.
For them, it is only the taste that matters. I can imagine that a
dry white wine in India would be experienced as very sour and not very
interesting. Therefore, these varying consumer preferences may prove
to be a hurdle and keep away the nascent wine culture in India from
turning into a booming business. But I think it’s just a matter of time
before Indian consumers would be comparatively more educated about this
wonderful drink.
What
about Indian wines? A lot of Indian players, for example Grover Vineyards,
have got into the wine business by importing a particular variety of
grape and growing it on the Indian soil. Does this mean that the original
Indian grape is not suited for wine making?
As far as my understanding goes, it is true that the traditional Indian
grape is not the right grape family with which you can make a quality
wine. There is a family of grapes that is particularly suited for wine
making and in that family there are different varieties that make the
best wines in the world. So it’s up to the company to choose the correct
variety.
Do
you think that a business proposition exists for Indian wines in India
and abroad?
Absolutely! There is a potential for wine industry in India, but a
little groundwork has to be done on the part of the Indian companies
who are planning to enter the business, as the right variety of grape
is not....
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