Following a slow down in Indian wine sales - growth slowed to 1.6% or 1.525 million cases in 2008-09 - sales are expected to bounce back.

The recent fall in consumer spending and the damage done to the hospitality sector after the Mumbai terror attacks cooled a booming market that had witnessed growth of 25% for four straight years.

The slow down

While Assocham figures of 2008 - predicting annual county-wide consumption to double to over 8 million liters by 2010 - were too optimistic, the outlook is good. Perceived as a healthier drink (compared to spirits) and a lifestyle choice, as the range of wine expands, the market is expected to accelerate.

Seasonal rebound

Now in the peak season - Dusshera through to the New Year, a period where 60% of sales are made - wine makers are optimistic for 2009-10.
Rajeev Samant, chief executive of Nashik Vintners, owners of the Sula brand of wines commented, "the last two months have been superb". Samant's winery experienced October sales growth of 50% compared with year previous.

New category growth

The knock on effect of the recession has stimulated a new market category. While the R's 300 + category is flat, the R's 100-300 category is growing. Sula hope to sell 40,000 cases of its inexpensive Dia and Samara labels this financial year, growth of 300% on last year.

Broader appeal, greater awareness

Signs are that interest in wine is growing, Indian wine magazine, Sommelier India held its first India Wine Competition just days ago. The competition assessed wines produced in India and wines available, or soon to be available for consumption in India. Over 400 wines were tasted, 18 wines from a variety of countries were given the gold award.

Abhay Kewadkar, of Four Seasons Wine, believes the event will increase appeal and educate the novice wine connoisseur, saying "the last year has been rather stagnant for business, but we're hopeful that we should bounce back to a 40 per cent growth rate by next year.

Increased interest in wine

In addition Spencer's Retail has just opened its largest wine and liquor outlet in Inorbit Mall, Mumbai. With 15 expected to open, Spencer's are looking to benefit from the increased interest in wine. Focus is likely to be placed on the well-traveled, affluent, internationally exposed consumer who will have tried wine abroad but now demands the same availability at home.