A study into wine consumption patterns of Indians with special reference to the Pune region

Index

1. Introduction
1.1 Wine
1.2. Economical impact of wine
1.3 Wine in India
1.4 Conclusion

2. Literature Review
2.1 Introduction
2.2 Impact on Indian economy
2.3 Development of wine in India
2.4 Indian wine manufacturers
2.5 Indian grapes and wine
2.6 Perceptions of wine consumption
2.7 Quality Standards
2.8 Wine marketing in India
2.9 Advantage over imported wines
2.10 Wine is a luxury
2.11 Wine and health
2.12 Conclusion

3. Research Methodology
3.1 Introduction
3.2 Scope of Research
3.3 Objectives
3.4 Hypotheses
3.5 Sampling
3.6 Tools and techniques of analysis
3.7 Statistical tests
3.8 Conclusion

4. Data Analysis and Hypothesis testing
4.1 Data Analysis
4.2 Hypothesis testing
4.3 Conclusion

5. Conclusion
5.1 Findings
5.2 Conclusion

6. Suggestions
6.1 General suggestions
6.2 Specific suggestions
6.3 Implementation barriers

7. Limitations of the study and scope for further research
7.1 Limitations
7.2 Scope for further study

Bibliography

Annexures
Appendix A Questionnaire
Appendix B Extract of Maharashtra’s Grapes Processing Industry Policy,2001
Appendix C List of Wineries in Maharashtra
Appendix D Pictures
Appendix E Papers published by researcher

Declaration

I, Mrs Deepa Prasad Venkatraman, hereby declare that this thesis entitled “A study into wine consumption patterns of Indians with special reference to the Pune region” is a bonafied work carried out by me, under the Guidance of Dr. P.C. Kalkar. All the facts and figures included in the thesis is a result of my own research and investigations including formal analysis, has not been previously formed the basis of award of any degree, diplomas, associateships or other similar degrees or diplomas and the same has not been previously submitted to any examination of this University or any other University.

This declaration will hold good and in my wise belief with full consciousness.

Date:

Place: Pune-411 033

[Deepa Prasad Venkatraman]

CERTIFICATE

This is to certify that the thesis entitled “A study into wine consumption patterns of Indians with special reference to the Pune region” submitted by Mrs Deepa Prasad Venkatraman to Faculty of Management Studies, Dr DY Patil Vidyapeeth, Pimpri, Pune, for the award of the degree of Doctor of Philosophy is a bona fide record of the research work carried out by her under my supervision and guidance and is now ready for examination. The content of the thesis, in full or parts have not been submitted to any other Institute or University for the award of any other degree or diploma.

(Dr. P. C. Kalkar)

Date: Thesis Guide

Place: Pune

ACKNOWLEDGEMENT

I, Deepa Prasad Venkatraman, undersigned express my sincere, gratitude to following persons who have helped me in completing the thesis.

I am thankful to my guide Dr. P.C. Kalkar, who has been my mentor, support and a guiding light during the journey of the research. He has used his vast experience and knowledge in the field of Management to guide me in the process of my PhD research.

His invaluable time and patience during my research work has culminated in my completing the thesis.

I would like to express my sincere gratitude to Dr. Sachin Borgave (Singhad Institute of Management) who has guided me, monitored my progress, enhanced my thesis work and continuously contributed in enriching the thesis.

My sincere gratitude to Dr. Vijay Dhole, for his support and direction, especially in the initial stages of the thesis. His guidance gave me a clear direction in which to move forward with the thesis.

I am thankful to Dr. Anil Keskar for his mentoring and broadening our knowledge. His contribution in understanding the technicalities involved in a thesis was of tremendous help to me in formulating this thesis.

My sincere gratitude to our Research Director, Dr.Kunal Bhattacharya for his continuous and relentless pursuit, in helping me through the process of research. His weekly presentations and training sessions gave a direction and time frame to the thesis.

I thank all my fellow research scholars for their motivation, support and sharing of knowledge helping me in effectively complete my research.

Last but not least, my journey has only been possible due the encouragement and blessings given by my parents, my in-laws and family members. My special thanks to my husband, Prasad Venkatraman, for his love, understanding, patience and support in taking care of our two sons, Aditya and Akshath, during my research work.

Date:

Place: Pune 411 033

[Deepa Prasad Venkatraman]

List of Tables

Table 1.1 Wine makers’ calendar

Table 1.2 Differences between Red and White wine

Table 1.3 Wine and Food Pairing – Red Wine

Table 1.4 Wine and Food Pairing – White Wine

Table 1.5 Value of wine exports

Table 1.6 Vine growing conditions

Table 2.1 Statistics - Indian Wine Industry

Table 2.2 Wine tasting terms

Table 2.3 Taste and aroma of important grapes

Table 2.4 Wine and Food pairing (Appetizers and fish)

Table 2.5 Wine and Food pairing (Meats)

Table 2.6 Wine and Food pairing (Cheeses and desserts)

Table 2.7 Quality grading of wine

Table 2.8 Tax on wine

Table 2.9 Comparison of pricing

Table 2.10 Wine sales comparison

Table 3.1 Required sample size

Table 4.1 Gender distribution

Table 4.2 Age group break-up

Table 4.3 Educational level break-up

Table 4.4 Marital status

Table 4.5 Income range break-up

Table 4.6 Reasons for not consuming alcohol

Table 4.7 Locations where alcohol is most consumed

Table 4.8 Frequency of wine consumption

Table 4.9 Reasons for not consuming wine

Table 4.10 Locations where wine is most consumed

Table 4.11 Preferred wine

Table 4.12 Preferred type of wine

Table 4.13 Purchase concerns

Table 4.14 Consumers’ knowledge

Table 4.15 Consumers' knowledge on attributes

Table 4.16 Consumer perceptions

Table 4.17 Kruskal-Wallis test (Ranks)

Table 4.18 Kruskal-Wallis test statistics a,b

Table 4.19 Age groups consuming wine at home

Table 4.20 Age groups consuming wine in social events

Table 4.21 Age Range vs Frequency of Wine Cross tabulation

Table 4.22 Chi Square Test (Hyp. 1)

Table 4.23 Symmetric Measures (Hyp. 1)

Table 4.24 Income Range vs Frequency of Wine Cross tabulation

Table 4.25 Chi Square Test (Hyp. 2)

Table 4.26 Symmetric measures (Hyp. 2)

Table 4.27 Education Level vs Frequency of Wine Cross tabulation

Table 4.28 Chi-Square tests (Hyp. 3)

Table 4.29 Symmetric Measures (Hyp.3)

Table 4.30 Chi-Square Tests (Hyp. 4)

Table 4.31 Symmetric Measures (Hyp. 4)

Table 4.32 Cross tabulation female drinkers

Table 4.33 Mann-Whitney U test (Hyp. 5)

Table 4.34 Descriptive Statistics

Table 4.35 Testing of means (Hyp.5)

Table 4.36 Binomial Test (Hyp. 5)

List of Figures

Figure 1.1 Wine making

Figure 1.2 Vinification process (still wines)

Figure 1.3 Méthode Champenoise (Traditional Champagne making)

Figure 1.4 Types of wines

Figure 1.5 World- wide wine production

Figure 1.6 World Wine Production

Figure 1.7 Growth Rate in Wine Production 2007-

Figure 1.8 Global Wine consumption, 2000-2011 in mhl

Figure 1.9 Wine producing regions of India

Figure 1.10 Wineries in Maharashtra

Figure 1.11 Area wise number of wineries in Maharashtra

Figure 1.12 Wine Distribution Channels

Figure 2.1 Wine trends

Figure 2.2 Development of Wine Industry - India

Figure 2.3 The wine label

Figure 3.1 Wineries in Maharashtra

Figure 4.1 Gender distribution

Figure 4.2 Age group break-up

Figure 4.3 Educational level break-up

Figure 4.4 Marital status

Figure 4.5 Income range break-up

Figure 4.6 Reasons for not consuming alcohol

Figure 4.7 Locations where alcohol is most consumed

Figure 4.8 Frequency of wine consumption

Figure 4.9 Reasons for not consuming wine

Figure 4.10 Locations where wine is most consumed

Figure 4.11 Preferred wine

Figure 4.12 Preferred type of wine

Figure 4.13 Purchase concerns

Figure 4.14 Consumers’ knowledge

Figure 4.15 Consumers' knowledge on attributes

Figure 4.16 Consumer perceptions

Figure 4.17 Females’ wine vs other alcohol consumption

Summary of the thesis

India is the second largest populated country with a population of 1.2 billion people and a large middle class of over 250 million people. We could be consuming about 250 million liters of wine annually if each person drank just 1 liter per year.

However, the annual consumption of wine averages about 7 million liters of Indian and about 1.5 million liters of Imported wines. This translates to less than 1 million cases of wine. This is in stark contrast to about 120 million Cases of hard liquor like Whiskey, rum and vodka being consumed every year and over 105 million cases of Beer.

This research analyses the wine consumption patterns in Pune City (Pune Municipal Corporation limits) to determine the demographic of the wine consumers and their knowledge about wine. This research also seeks to understand the wine consumers’ perceptions towards wine.

The literature reviewed has shown the development of wine in India. The impact the wine industry has on the Indian economy has also been illustrated. Details of the major Indian wine manufacturers and the potential they have has been studied.

Information on Indian grapes and wine has been collated. Articles and studies on the perceptions that wine consumers have showed that there are still some myths and misconceptions surrounding wine.

The advantages and disadvantages faced by Indian wine manufacturers have been illustrated. Studies have shown the positive health benefits of moderate wine consumption The Indian market is a very young market. Indian wine manufacturers are still coming to terms with a small but growing consumer base. Numerous foreign studies have shown that the India has a good potential for wine marketing.

Given the low levels of wine consumption, in comparison to Beer and Hard Liquor, this research identifies the wine consumers’ perceptions and demographics. The research offers the wine manufacturers a target group on whom to focus their marketing strategies on.

It also evaluates the perceptions of the wine consumer in respect to wine being an acceptable drink in a family environment and notions of wine perceived as a luxury drink. Wine marketers can use this as a basis of understanding the consumption patterns of wine consumers.

1. Introduction

Wine production has been discussed and information on different types of wines has been given. A brief has been provided, on the economic impact that the Wine industry has on the global market.

An introduction to wine production in India, identifying the major regions and producers shows that Maharashtra is the leader in Viti and Vini culture in India

1.1 Wine

Wine is an alcoholic beverage made from fermented grapes. The natural chemical balance of grapes lets them ferment without the addition of sugars, acids, enzymes, water, or other nutrients

Wines made from fruits besides grapes are usually named after the fruit from which they are produced (for example, pomegranate wine, apple wine and elderberry wine) and are generically called fruit wine.

For the purpose of this study, wine would mean, the drink made from Grapes There are many stories about how wine was first made. There are accounts in the Bible that say that Noah and his sons produced wine at the base of Mount Ararat.

There is a Persian tale of King Jamshid. It is said that he banished one of his harem ladies from the kingdom. She was driven to despair and wanted to commit suicide.

She went to the King’s warehouse and found a jar marked poison containing the remains of grapes that had spoiled and was undrinkable. Little did she know that the "spoilage" was actually the result of fermentation (the breakdown of the grapes' sugar by yeast into alcohol).

She discovered that the effects after drinking were pleasant and her spirits were lifted. She took her discovery to the king, who became so enamored of this new "wine" beverage that he not only accepted the woman back into his harem but also declared that all grapes grown in Persepolis would be devoted to winemaking.

While most wine historians view this story as pure legend, there is archaeological evidence that wine was known and extensively traded by the early Persian kings.¹

Though this makes for an interesting story, archaeological evidence suggests that the earliest known wine production occurred in what is now the country of Georgia, around 7000 BCE²

Wine was made in all parts of the world from Greece to Egypt to France.

1.1.1 Old World wines

i) Greece

Much of modern wine culture derives from the practices of the ancient Greeks. While the exact arrival of wine in Greek territory remains obscure, it was certainly known to both the Minoan and Mycenaean Cultures.

Many of the grapes grown in modern Greece are grown there exclusively and are similar or identical to varieties grown in ancient times.

The most popular modern Greek wine, a strongly aromatic white called Retsina, is thought to be a carryover from the ancient practice of lining wine jugs with tree resin, which imparted a distinct flavor to the drink. 2

ii) Ancient Egypt

Wine played an important role in ancient Egyptian ceremonial life. A thriving royal winemaking industry was established in the Nile Delta following the introduction of grape cultivation from the Levant to Egypt c. 3000 BCE. The industry was most likely the result of trade between Egypt and Canaan during the Early Bronze Age.³

The Egyptian tombs have paintings of wine making on the walls of the tomb. It is believed that wine was past of the list of items sent with the Pharaoh for the journey to the afterlife. Wine in ancient Egypt was predominantly red, however, a recent discovery has revealed the first evidence of white wine there. Residue from five clay “amphora” from Pharaoh Tutankhamen’s tomb yielded traces of white wine. ⁴

iii) Roman Empire

The Roman Empire had an immense impact on the development of viticulture and oenology. Wine was an integral part of the Roman diet and winemaking became a precise business.

Virtually all of the major wine-producing regions of Western Europe today were established during the Roman Imperial era.

Winemaking technology improved considerably during the time of the Roman Empire. Many grape varieties and cultivation techniques were developed, and barrels (invented by the Gauls) and later, glass bottles (invented by the Syrians) began to compete with terracotta amphora for storing and shipping wine. Following the Greek invention of the screw, wine presses became common in Roman villas. The Romans also created a precursor to today's appellation (grading of wine) systems, as certain regions gained reputations for their fine wines. 3

iv) Medieval Europe

In the Middle Ages, Southern Europe was a grape growing region and hence wine was the common drink of all social classes. In the northern and eastern regions, beer and ale were the usual beverages as grape was hardly grown here.

Wine was exported to the northern regions, but due to the high cost of wine, it was hardly ever consumed by the lower classes. All churches in the celebration of the Mass use wine widely. For the Church, wine availability was crucial.

To ensure uninterrupted supply of wine to churches, the Benedictine monks became one of the largest producers of wine in France. Germany, followed closely by The Cistercian Order in Germany produced wine for German Churches.

Other orders, such as the Carthusians, the Templars, and the Carmelites, also created a name for themselves as notable wine producers.

The Benedictines owned vineyards in Champagne, Burgundy, and Bordeaux in France, and in the Rheingau and Franconia in Germany.

Dom Perignon was the name of a Benedictine monk and is now a world famous champagne In this era wines were stored in barrels and drunk quite young. They were not aged. Wine (alcohol) consumption was heavy in these times. To offset the effects of this wine was frequently watered down at a ratio of four or five parts water to one of wine.

1.1.2 New World wines

i) The Americas

In the 16th Century Spanish explorers traversed Westward from Europe and Spanish conquistadors landed in Mexico. They brought along with them, European grape varieties and developed grape cultivation here. Mexico became the most important wine producer starting in the 16th century Along with Mexico, a large number of vineyards were developed in Florida. In the mid-19th century the advent of steamships enabled the crossing from the Americas to Europe easier and faster. It is generally assumed now that vines from America were taken over to Europe in large numbers to experiment in grafting. It is debated that along with these vines came an aphid that infected the local French vines.

This was called the Great French Wine Blight. More than 40% of the Vineyards were destroyed and had a severe and detrimental effect on the European wine industry. This aphid also affected vineyards in many other European countries.⁵

This Blight, though destroying and devastating the European wine production did have a silver lining. It was found that grafting American vines onto European vines gave a hybrid that was impervious to the phylloxera. The practice continues to this day wherever phylloxera is present.

ii) Australia, New Zealand and South Africa

Australia, New Zealand, South Africa and other countries without a wine tradition are considered New World producers.

Ships traveling from Europe to the Far East had to traverse around the African coast and generally had a halt around the Cape Province (South Africa).

In order to supply passing ships with wine for their journey, South Africa started producing wine in the late 17th Century.

“Australia’s First Fleet” was the first ships that carried people (Marine guards and convicts) from England to the Australian continent. As they traveled around the Cape of Good Hope (South Africa) the brought cuttings of vines from here to Australia to cultivate grapes and produce wine in the New Country.

The first successful vineyards were established here in the early 19th century. The produce was mainly used for local consumption and a little export to close neighboring countries. Through the 20th century and with advances in mechanization and scientific techniques in winemaking, these countries became known for high-quality wine around the world.

1.1.3 Wine production

Wine is an alcoholic beverage made from fermented grapes or other fruits. The natural chemical balance of grapes lets them ferment without the addition of sugars, acids, enzymes, water, or other nutrients Wines made from fruits besides grapes are usually named after the fruit from which they are produced (for example, pomegranate wine, apple wine and elderberry wine) and are generically called fruit wine.

For the purpose of this study, wine would mean, the drink made from Grapes.

Wine making can be broken down into three stages as illustrated in Figure 1.1 below.

Figure 1. 1 Wine making

Abbildung in dieser Leseprobe nicht enthalten

1.1.3.1 Viticulture

Viticulture is the science, production and study of grapes that deals with the events that occur in the vineyard.

Duties of the viticulturist include: monitoring and controlling pests and diseases, fertilizing, irrigation, canopy management, monitoring fruit development and characteristics, deciding when to harvest and vine pruning during the winter months. Viticulturists are often intimately involved with winemakers, because vineyard management and the resulting grape characteristics provide the basis from which winemaking can begin.

The grape vine is the source of all wine. Reaching the highest level of quality in wine is only possible by starting with the highest quality fruit. Maximizing fruit quality from any vineyard site can be a lengthy process, because the end results are revealed only after several seasons of comparison.

i) Vine Species

Vitis (grapevines) is a genus of about 60 species of vining plants in the flowering plant family Vitaceae.⁶ The genus is made up of species predominantly from the Northern hemisphere. It is economically important as the source of grapes, both for direct consumption of the fruit and for fermentation to produce wine.

The exact number of species is not certain, with species in Asia in particular being poorly defined. Estimates range from 40 to more than 60. Some of the more notable ones include:⁷

Vitis vinifera, the European grapevine. Native to the Mediterranean and Central Asia.

Vitis labrusca, the Fox grapevine, sometimes used for wine. Native to the Eastern United States and Canada.

Vitis aestivalis, the Summer Grape, native to the Eastern United States, especially the Southeastern United States.

Vitis coignetiae Crimson Glory Vine, a species from East Asia grown as an ornamental plant for its crimson autumn foliage.

Vitis amurensis, native to the Asian continent, includes parts of Siberia and China.⁸

There are many cultivars of grapevines; most are cultivars of Vitis vinifera. Hybrid grapes also exist, and these are primarily crosses between Vitis vinifera and one or more of Vitis labrusca, Vitis riparia or Vitis aestivalis. Hybrids tend to be less susceptible to frost and disease (notably phylloxera), but wine from some hybrids may have a little of the characteristic "foxy" taste of Vitis labrusca.⁹

ii) Climatic conditions required

Beyond establishing whether or not viticulture can even be sustained in an area, the climatic influences of a particular area goes a long way in influencing the type of grape varieties grown in a region and the type of viticulture practices that will be used. The presence of adequate sun, heat and water are vital to the healthy growth and development of grapevines during the growing season.

The grapevine prefers the temperate climate in which it evolved, with warm, dry summers and mild winters. Winters of sustained cold kill grapevines. High humidity promotes vine disease. Tropical temperatures disrupt the normal vine cycle of winter dormancy.

In addition to temperature, the amount of rainfall is another defining characteristics. On average, a grapevine needs around 28 inches (700 mm) of water for sustenance during the growing season.

In Mediterranean and many continental climates, the climate during the growing season may be quite dry and require additional irrigation. In contrast, maritime climates often suffer the opposite extreme of having too much rainfall during the growing season, which poses its own viticulture hazards¹⁰ Other climate factors such as wind, humidity, atmospheric pressure, sunlight as well as diurnal temperature variations which can define different climate categories, can also have pronounced influences on the viticulture of an area¹¹

Grapevines are fairly adaptable plants, growing in a wide variety of soil types, from light sand to packed clay, and flourishing around the globe in the temperate bands between 20° and 50° Latitude, north or south of the Equator.

They are successfully grown in Europe, the Balkans, Asia, Mediterranean and South Africa, South Australia and New Zealand, most of North America and a good portion of South America.

Table 1.1 below shows the typical activities carried out at vineyards during one season

Table 1.1 Wine makers’ calendar

Abbildung in dieser Leseprobe nicht enthalten

Source: Bell, R. (n.d.). Wines of Canada. Retrieved April 2012, from http://www.winesofcanada.com/learn_calander.html

1.1.3.2 Vinification

Winemaking, or Vinification, is the production of wine, starting with selection of the grapes and ending with bottling the finished wine Winemaking can be divided into two general categories: still wine production (without carbonation) and sparkling wine production (with carbonation — natural or injected).

The science of wine and winemaking is known as oenology. A person who makes wine is traditionally called a winemaker or vintner.

Abbildung in dieser Leseprobe nicht enthalten

Figure 1. 2 Vinification process (still wines)

i) Harvesting

Harvest is the picking of the grapes and in many ways the first step in wine production. Grapes are either harvested mechanically or by hand.

The decision to harvest grapes is typically made by the winemaker and informed by the level of sugar, acid and pH of the grapes.

In the case of the wine maker wanting a sweeter wine, the grapes are left to ripen for a longer period increasing the content of sugar in them. The balance of acidity and sugar is the critical element in the grapes, which gives the taste to the finished wine.

Other factors include grape flavor and tannin development. Tannin is the flavour derived from the seeds, skin and the stalk.

ii) De- Stalking

A de-stalking machine nowadays does the removal of stalks from the grapes. Stalks have a bitter taste due to the presence of Tannin and are removed so that they do not come in contact with the juice.

iii) Crushing Pressing

Crushing is the process when gently squeezing the grapes and breaking the skins to get the “must” (fresh grape juice)

The Must is obtained by Trampling on the grapes, Balloon press, Hydraulic press and Vertical press.

iv) Trampling

Grapes are placed in large shallow tanks and persons wearing special boots trample on the grapes, crushing them and releasing the must. This was the traditional method before automation and is now done only as Promotional or Publicity event.

v) Balloon Press

This is an expandable balloon fitting in a tank filled with grapes. The balloon is expanded and this gently crushes the grapes against the sides of the tanks releasing the must. This method is used when the wine maker wants less tannin flavour in the Must.

vi) Hydraulic Press

This press has a lid on the tank, which descends hydraulically crushing the grapes in the tank and releasing the must.

vii) Vertical Press

This press consists of a roller with a plate surrounding it. The grapes are crushed between the roller and plate, releasing the must.

Red wine is made from the must of red or black grapes and fermentation occurs together with the grape skins, which give the wine its color.

White wine is made with Must that is not allowed to come in contact with the skins.

Occasionally white wine is made from red grapes. The Must is extracted and there is minimal contact with the grapes' skins.

Rosé wines are either made from red grapes where the juice is allowed to stay in contact with the dark skins long enough to pick up a pinkish color, or by blending red wine and white wine. White and Rosé wines extract little of the tannins contained in the skins.

viii) Fermentation

Fermentation is the process where the natural yeast on the Grape skin acts on the sugar in the Must, converting it into ethanol and carbon-di-oxide. The carbon-di-oxide is allowed to escape out.

This fermentation is carried out in Stainless steel tanks, which are controlled thermostatically at around 60 to 80 deg. F

The fermentation can last from 2 days up to 2 weeks. This time is determined by the tradition of the wine making house. The process of fermentation continues as long as there is sugar left in the Must, and until the alcohol percentage reaches 12% - 14%. At this level the ethanol kills the yeast in the Must and fermentation stops.

If all the sugar gets converted to alcohol by this stage the wine becomes a dry wine. If there is unconverted sugar remaining the wine is a sweeter wine. In some cases, sugar is later added to drier wines to make the sweet, during the bottling process.

ix) Racking

The fermented wine is transferred to Casks in the next stage, to mature. Lees (dead yeast) collects in the wine over a period of time. The wine from this cask is removed and transferred to another cask leaving the Lees behind. This process is repeated numerous times and is what gives clarity to the wines.

x) Fining and Filtration

Fining and filtration converts the cloudy wine to a clear liquid. A gelatinous substance or fining agent such as egg whites, isinglass or gelatine is introduced into the wine.

This substance attracts all the particulate matter in the wine and settles at the bottom. The clear wine is siphoned off the top and additionally passed through fine filters to further removes any particles.

xi) Sulphuring

Some wine makers add sulphur-di-oxide to the wine as a preservative. Others leave the wine, as it is, preservative free.

xii) Maturing

Wines are matured in Oak casks and the maturing period varies greatly from region to region and for different types of wines.

Maturing makes the wine mellow and smooth and also allows for the wine to acquire a certain colour from the cask in which they mature.

This is also called “Aging a Wine”

xiii) Bottling

The wine is then bottled and traditionally sealed with a cork. Today, alternative wine closures like synthetic corks and screw caps, which are becoming increasingly popular.

Some wines continue the maturing process even after bottling.

xiv) Labelling

Wine labels are important sources of information for the buyer since they tell the type and origin of the wine.

Certain information is ordinarily included in the wine label, such as the country of origin, grading, type of grape, style of wine, alcohol percentage, producer, bottler, or importer.

1.1.3.3 Méthode Champenoise

The oldest and most traditional way to make sparkling wine was supposedly developed by Dom (Pierre) Perignon, a Benedictine Monk in the Champagne district of France, born in1638, and is known as Méthode Champenoise. Therefore only the sparkling wine from this region can be called champagne A blend of a number of wines is used to achieve consistency year after year. The wines are assembled into a "cuvée", which just means a blend of wines.

The "liquer de tirage"(yeast and sugar) is added to the cuvée, bottled, stoppered, and laid up "en tirage" to trap the carbon dioxide gas produced by the yeast as it reacts with the sugar in the wine.

The wine is then fermented "en tirage" until the yeast has reacted with all of the sugar and produced the tiny CO2 bubbles.

At the end of this fermentation in the bottle, the wine will clear and leave a deposit of yeast. It is now ready for "riddling" The bottles are kept in "riddling racks” in an upturned position. The process known as "remuage," is the where the yeast deposits into the neck of the bottle. This takes several weeks to several months.

The bottles are then set in a freezing brine solution to freeze the yeast sediment and form a "plug" at the neck of the bottle. This is then ejected. This process is called “disgorgement” “Dosage” is the next step in the process. Here, sugar is added to the wine if a sweeter wine is required. Typically sparkling wine is Brut (very dry), Sec (dry), Demi Sec (semi-sweet) and Doux (sweet) Corking is done next and a wire cage in place to prevent any possible premature de corking from the high pressure contained in the bottle.

This is the traditional method of making Champagne. This is an expensive and time-consuming method. Sparkling wines can also be made where secondary fermentation takes place in the tanks itself, or by carbonating the wine and then bottling.

1.1.3.4. Fortified and Aromatized wines

i) Fortified (liqueur) wines

Fortified wines such as sherry, port and Madeira have been strengthened by the addition of alcohol, usually a grape spirit. These are now known within the EU a liqueur wines or vins de liquer. Their alcoholic strength may be between 15% and 22% by volume.

Examples are:

- Sherry (from Spain) 15-18% fino (dry), Amontillado (medium), Oloroso (sweet).
- Port (from Portugal) 18-22% ruby, tawny, vintage character, late bottled, vintage
- Maderia (made on the Portuguese island of Madeira) 18% sericial (dry) verdelho medium, Bual (sweet), Malmsey (very sweet).
- Marsala ark (sweet wine from Marsala in Sicily) 18%
- Malago (from Malag, Andalusia, spring- 18-20%

ii) Aromatised wines

These are flavoured and fortified wines.

a) Vermouths

The four main types of vermouth are:

- Dry vermouth: often called French is vermouth or simply French (as in Gin and French) it is made from dry white wine that is flavoured and fortified
- Sweet vermouth/bianco; made from dry white wine, flavoured, forfeited and sweetened with sugar or mistelle.
- Rose vermouth: in a similar way to Bianco, but it is less sweet and is coloured with caramel.
- Red vermouth: often called Italian vermouth, Italian or more often ‘It’ (as in Gin and it),

It is made from white wine and is flavoured, sweetened and coloured with a generous additional of caramel.

b) Other aromatized wines.

- Chamberysette: made in the Savoy, Alps of France. It is flavoured with the juice of wild strawberries.
- Pumt-e-mes: from Carpano of Turin. This is heavily flavoured with quinine and has wild contrasts of bitterness and sweetness.
- Dubonnet: Made in France and is available in two varieties: blonde (white) and rough (red) and is flavoured with quinine and herbs.
- St Raphael: Red or white, bittersweet drink from France flavoured with herbs and quinine.
- Lillet: Popular French aperitif made from white Bordeaux wine and flavoured with herbs, fruit peel and fortified with Armagnac brandy. it is aged in oak casks.
- Pineau des Charentes: although not strictly an aromatized or fortified wine, Pineau des Charentes has gained popularity as an alternative aperitif or digestive. It is available in white, rose or red and is made with grape must from the cognac region and fortified with young cognac to about 17% alcohol and by volume.

1.1.4. Classification of wines

As seen in the previous chapter, Wine is Still, Sparkling, Fortified or Aromatised. Within these types are additional classification of wines depending on their taste and grape type. Figure 1.4 below, shows a basic classification of types of wine based on colour and taste. The illustration shown below is just a basic classification. Wine experts and aficionados have a much more detailed break-up of types of wine. This however is not relevant to this study, and only the basic break-up is shown below.

Table 1. 2 Differences between Red and White wine

Abbildung in dieser Leseprobe nicht enthalten

Source: (Food and Beverage Service (Eight Edition ed.), 2010)

Basic differences between the red and white wine is listed in Table 1.2. This is a handy information table that gives a consumer basic knowledge on what wine to order and how to consume it.

A small list of popular wines from around the world is compiled below.

Popular wines from around the world (Johnson & Robinson, 2005)

Abbildung in dieser Leseprobe nicht enthalten

Table 1.3 Wine and Food Pairing – Red Wine

Abbildung in dieser Leseprobe nicht enthalten

Source : Great wine made simple, 2000

Table 1. 4 Wine and Food Pairing – White Wine

Abbildung in dieser Leseprobe nicht enthalten

Source : Great wine made simple, 2000

1.1.5. Grading of wines

In 1935, the INAO, (Institut National des Appellations d’Origine) defined strict, specific, appellation characteristics to help guide the consumer to the quality of wine they are buying.

In 1935, French law was written, with the help of the INAO that created the four main categories we are familiar with today.

Vin de Table – Wines with this designation are listed as being from France and provide the producers name on the label.

Vin de Pays – Wines using that designation were produced from a specific, major, wine growing region, they also state the producers name and France.

Vin Délimité de Qualité Supérieure is rarely seen now. Less than 1% of all French wines bear that designation.¹²

It similar, but less restrictive, than the AOC classification.

Appellation d’Origine Contrôlée AOC, accounts for 53.4%¹³ of all wines from France. There is a reason AOC takes up the majority of the classifications, more than 450 separate and potentially distinct AOC’s are in use today. There are a series of rules and regulations that go along with being classified as an AOC wine.

This includes the specific area where the fruit was grown and the wine was made, the type of grape planted in the vineyard, specific production methods, and minimum levels of alcohol and maximum levels of yields.

Every quality grower produces wine from lower yields and higher level of alcohol than is allowed by law.

Italy and other European countries also have a similar classification and grading of wines.

1.2. Economical impact of wine.

Wine is a much enjoyed drink the world over. From the traditional wine growers in Medieval France to the new world vineyards in Australia and India, wine is produced and enjoyed. Wine is even grown in the most unbelievable places like the Gobi Desert¹⁴ in China.

Despite this, only 10 countries produce 80% of the wine consumed on this planet. The top three wine producers are France, Italy and Spain. (Refer Figure 1.5)

Abbildung in dieser Leseprobe nicht enthalten

Source: Wine's Globalization: New Opportunities, New Challenges 2011

France and Italy produce over 4.5 Billion Liters of wine each, with Spain producing 3.6 Billion¹⁵. These are 2010 figures compiled by USDA Global Agriculture Information Network Report. Indian wine production peaked in 2010, and in comparison, it produced 13 million liters.

India’s wine production is less than 3% of the wine produced in countries like France, Italy and Spain, individually.

Statistics compiled on world Vini and Viti Culture (International Organisation of Vine and Wine, 2012) gives an indication of the impact wine has on the world economy.

Abbildung in dieser Leseprobe nicht enthalten

Source: International Organisation of Vine and Wine, 2012

Figure 1.6 shows the world wine production trend from 2000 up to 2011. The production of wine in 2011 is around 271 Million Hectolitres. (Mhl - 1 hectolitre is 100 litres)

The top 10 producers of wine are shown in the Figure 1.5, and they constitute 80% of this production.

Abbildung in dieser Leseprobe nicht enthalten

Source: International Organisation of Vine and Wine, 2012

As observed in Figure 1.7, the old world wine countries have had a decrease in production over the last 5 years as New world wines (New Zealand, India, Chile) have had a spurt in growth.

A country like India has seen a major leap in increase in domestic wine production. The wine consumption in India has increased by 31% over this period as has the production of wine, which has increased by 29%. (Anderson & Nelgen, 2011)

Figure 1. 8 Global Wine consumption, 2000-2011 in Mhl

Abbildung in dieser Leseprobe nicht enthalten

Source: (International Organisation of Vine and Wine, 2012)

With only 10 countries producing 80% of the world wine (Figure 1.5), most of the countries import wine from the major wine producers.

France and Italy make up for almost 50% of the world wine exports. This market is worth billions of dollars in revenue.

The Economic translation of this growth, consumption and export pattern is reflected in Table 1.5 below.

Table 1.5 Value of wine exports

Abbildung in dieser Leseprobe nicht enthalten

Source: The impact of Wine, Grapes and Grape Products on the American Economy 2007

Looking at Table 1.5, just the top 7 countries of the world earn US$ 19,800 Million in only wine exports.

In USA the retail market for wine alone is US$ 30 Billion with exports being (Wine Institute) US$ 800 Million.¹⁶. The employment generated through just Winery and Vineyard employees is worth US$ 2 Billion Given the figures above, it is evident that the wine industry is a large contributor to world economy and trade.

1.3 Wine in India

The grape vine was probably introduced into north west India from Persia as early as 2500 BC - in the Vedic texts two drinks are mentioned: Soma and Sura; later historical works (notably Kautilya's Arthashastra - c. 300 BC) mentions Madhu (wine) of various kinds and qualities - some home brewed.¹⁷

Down the centuries wine has been the drink of the Kshatriyas (warrior castes) - along with beer and spirits prepared from wheat/maize/barley in the north and rice/paddy in the northeast and south, and many of the royal Rajput Maharajas had their own, closely-guarded recipes for alcoholic drinks - for example Asha from Udaipur, Kasturi from Jodhpur, and Jagmohan & Manmohan from Kishengarh.

The Mughal emperors maintained extensive vineyards in the Deccan (Hyderabad); with the advent of the British in the 19th century local industry may have been revived (Indian wines were exhibited at the Great Calcutta Exhibition of 1884) but most vineyards were practically wiped out by the devastation of phylloxera in the 1890s.

Local and table grapes continued to be produced, notably for conversion into raisins - but cultivation of grape wines and wine production never got going - in part due to the strongly puritanical Gandhian philosophy of abstinence prevalent in the first half of the 20th century.

In post-Independence India (1947) the 'directive principles' of the Indian Constitution continued to discourage the consumption of alcoholic beverages and imports were severely discouraged; the mid-1970s saw all licensing (including that of alcoholic beverages) being brought under control of the Central Government and prohibition being imposed throughout the country.

Despite these constraints, wine-making continued in Goa using the 'Bangalore Blue' grape to make cheap 'port-style' wines; in the early 1970s Shaw Wallace set up a winery at Hyderabad for its 'Golconda' range, while the UB Group started a winery at Baramati in collaboration with Bosca of Italy (but again using the Bangalore Blue grape).

It was only from the 1980s when the government started giving support to the development of vineyards (principally that of table grapes for export) that Indage (Champagne India) came up with the first winery at Narayangaon (on the Pune - Nashik road) ; subsequently Grover Vineyards were established near Bangalore in early 1990s, and Sula Vineyards started by 1999 near Nashik.

However, it is really only in the last two years that wine consumption has taken off. In 2001 the government liberalised the import of all alcohol beverages - despite steep (200%+ ) customs duties, this has nevertheless catalysed the import of wines, and in Mumbai today over 100 labels are now available on retail shelves.

Local wine production is also set to grow rapidly: a number of initiatives in Maharashtra have given birth to several wineries (some set up by grape farmers themselves); Karnataka has a new Wine Policy on the anvil; and a National Wine Board and a Wine Institute are in the offing to give further impetus to the industry¹⁸

1.3.1. Wine Manufacturers in India

Wine manufacturing is still in a nascent stage in India. Most of the wine consumed in India was primarily imported wine.

A few distilleries in Goa and Andhra Pradesh produced Port wine. Until the year 2000 there were hardly six wineries. Since 2000 there are close to 73 producing wineries and another 30 additional companies that have registered to become producers.

Abbildung in dieser Leseprobe nicht enthalten

Source: Comprehensive Study of the Indian Wine Market (2008)

There are a few major wineries that account for the bulk of domestic wine production. Typically, smaller wineries around that region produce for the larger ones, rather than market their own brand.

Liquor companies like United Breweries Group have also started investing in vine and wine production. United Spirits Ltd., part of the UB Group, bought over the Bouvet Ladubay winery in France and launched its brand of wine in the Indian market too.

The main regions in India that are involved in viticulture are Maharashtra, Karnataka and Himachal Pradesh. Wine production is also there in a smaller scale in Goa and Andhra Pradesh, where Port and Aromatised wine is produced. This is illustrated in Figure 1.9 The Major players in this field are just three. They produce and supply over 86% of the market for domestic wines.

Grover Vineyards (Karnataka), Chateau Indage (Maharashtra) and Sula Vineyards (Maharashtra) are the three major producers of wine in India.

Viniculture has also started in the regions of Himachal Pradesh with Grover Vineyards setting up facilities there.

A list of major wine manufacturers of Maharashtra is listed in the Appendix C.

1.3.2. Wine Production in Maharashtra

Maharashtra is the state on the Western coast of India. Mumbai is the capital of this state and is the leading commercial centre in India.

Maharashtra is also the largest wine producing state of India. This state accounts for over 90% of Domestic wine production.

Figure 1.10 shows the majority of wineries registered in Maharashtra are in the Nashik Region.

Abbildung in dieser Leseprobe nicht enthalten

Source: Comprehensive Study of the Indian Wine Market (2008)

Figure 1.11 further shows that out of the total 66 wineries in Maharashtra, 57 are in Nashik, Sangli and Pune. They account for about 90% of the production in Maharashtra.

According to the department of Wine Production of the Maharashtra Industrial Development Corporation (MIDC), over 30,000 hectares have been allocated for the growing of grapes. A total of 66 operating wineries (out of the total of 73 in India) are located in this state.

The investments made in the state by these wineries by 2008 were already over INR 500 Crores.

The question arises, as to why Maharashtra is a leader in domestic wine production.

Before wine was being manufactured in India, table wine was being imported and the Government had imposed a hefty import duty on bottled wine. Bulk wine was imported and bottled in India too. However in the year 2004/2005 the state excise duty for Bulk wine was raised to 200% of the CIF value. Import duty too was raised to be at par with bottled wine import.

It was around this time that the Indian wineries were on a rise. The soil and climatic conditions in Maharashtra were found most conducive for Viticulture. This led, to the majority of vineyards and wineries to be established in the Maharashtra region, predominantly the Nashik region.

Table 1.6 explains the reasoning behind the bulk of the vineyards and wineries being located in Maharashtra, specifically in the Nasik region.

Table 1. 6 Vine growing conditions

Abbildung in dieser Leseprobe nicht enthalten

Source: Indian Wine Industry Report 2004-2005

Table 1.6 gives a clear indication for the reasons why Nasik and neighbouring regions has been a major player in the wine production industry of India.

A list of wineries operating in Maharashtra is provided in Appendix C

1.3.3 Distribution Channels

Wine, like all other commodities, has a standard distribution channel. The outlets where a consumer can buy wine are:

a) Liquor stores
b) Wine and Beer shops (these have a licence to only stock wine and beer)
c) Recently a few Supermarkets are licenced to stock wine and Beer too.
d) Restaurants, Bars

These retails outlets generally get their supply from a Distributor, either a city level or a state level depending on the size of the Market.

The distributors are fed by the Wineries. Most of the major Wineries also have a Plant tour, wine tasting bar and retail outlet at the Winery where the consume may purchase wine.

In case of imports, there is a registered Importer who will import the wine from foreign Wineries into India and then stock the Distributors.

A flowchart showing the two channels of distribution is illustrated in Figure 1.12 below.

As seen in Figure 1.12 the distributor is supplied wine by either the Winery (from their Warehouse) or the Warehouse of the Importer.

This channel of distribution plays a large role in the competition between Indian and imported wines. This will be discussed in detail in Chapter 2 of the study where advantages that an Indian Winery has over the Foreign one is assessed.

Abbildung in dieser Leseprobe nicht enthalten

Source: India, Exporter Guide 2011

1.4 Conclusion

India is an emerging Wine market in the New World countries of Asia. Although Indian Wine industry is in the nascent stage in terms of the area, prediction and marketing of wines, and eighty percent of the consumption is confined to cities, there is an increasing growing awareness about wine as a product in the domestic market.

India is the second largest populated country with a population of 1.2 billion people and a large middle class of over 250 million people. We could be consuming about 250 million liters of wine annually if each person drank just 1 liter per year.

However, the annual consumption of Wine averages about 7 million liters of Indian and about 1.5 million liters of Imported wines. This translates to less than 1 million cases of Wine. This is in stark contrast to about 120 million Cases of hard liquor like Whiskey, rum and vodka being consumed every year and over 105 million cases of Beer.

Wine production has been discussed and information on different types of wines has been given. A brief has been provided, on the economic impact that the Wine industry has on the global market.

An introduction to wine production in India, identifying the major regions and producers shows that Maharashtra is the leader in Viti and Vini culture in India.

The following Chapter discusses current literature and studies available on Wine.

Economics of Indian wine, perceptions held by Indians about wine, Demographics of the wine consumer, marketing strategies of Indian wine manufacturers and studies addressing the acceptability of Wine as a Social drink are all discussed in the following chapter.

2. Literature Review

The literature reviewed has shown the development of wine in India. The impact the wine industry has on the Indian economy has also been illustrated. Details of the major Indian wine manufacturers and the potential they have has been studied.

Information on Indian grapes and wine has been collated. Articles and studies on the perceptions that wine consumers have showed that there are still some myths and misconceptions surrounding wine.

The advantages and disadvantages faced by Indian wine manufacturers have been illustrated. Studies have shown the positive health benefits of moderate wine consumption

2.1 Introduction

Bangalore is called the “Silicon Valley” of India. It is home to a large number of Information Technology (I.T.) Multi-Nationals. It is a cosmopolitan city drawing the youth of India to it. Further north, the city of Pune is no less in the development of Information Technology Industry.

Pune is called the “Oxford” of the East. This is a reflection of the numerous Educational Institutions that Pune has. Even before the I.T. revolution in India, Pune has been attracting a horde of outsiders, both out-of-state and out-of-country. The suburbs of Pune, boasted to be one of the largest automobile and engineering bases in India. Multi-National Engineering companies have had a presence in Pune for decades.

In 2012, Bangalore was host to a different Industry attempting to start a trend. Bangalore was host to an International Wine festival. Pune too, over the last 2 to 3 years has been host to numerous Wine Festivals.

The Festivals offer the visitors an opportunity to taste various wines, gives them understanding of basics of wine and explains food pairing with wine too. There are also musical concerts, food stalls, fashion shows, traditional grape stomping and a host of entertainment activities.

However, behind all this frivolity lies a serious note. The wineries and the Wine board of India are on a warpath to promote and educate the Indian consumer about Indian Wine.

2.2 Impact on Indian economy

In a study by the Wharton School of University of Pennsylvania, (Unknown, 2012) the socio-cultural changes bringing in a change to the Indian wine industry is explained.

Wine consumption in India currently is minuscule, with the annual per capita consumption estimated to be less than 10 milliliters. World over, the global yearly per capita consumption of wine is around four liters. According to recent news reports, in 2011 the U.S. was the biggest wine market with annual consumption of 3.7 billion bottles of wine. The reports suggest that by 2015, the per capita consumption of wine in the U.S., which is currently around eight liters, will increase to 13 liters. China, which in 2011 replaced Britain as the fifth largest consumer of wine, is expected to have a per capita consumption of two liters by 2015. In France, it is over 40 liters.

Alok Chandra, founder and CEO of Gryphon Brands, a Bangalore based wine consultancy firm, notes that while traditionally Indians have been more inclined toward spirits and beer, wine has been steadily gaining acceptance. He estimates that over the past decade, the market has been growing at over 20% each year. There has also been a substantial increase in the number of wineries in the country, from less than 10 in 2000 to around 75 at present. Most of them, however, are very small. And just a handful of players have a pan India presence, Chandra points out. "Wine is a state government subject in India and every state has its own tax rules and regulations. This makes it very difficult to operate outside one's own state. It also adds to the end price for the consumer," says Chandra. (Unknown, 2012)

According to Anand Dikshit, (Unknown, 2012) executive director of corporate finance & investment banking at PricewaterhouseCoopers (PwC) India, the wine market in the country has grown "consistently at 15% to 18% over the past few years" and at present is close to 17 million liters with a value of Rs. 1,400 Crore (approximately US$280 million). "Given the slowdown being faced in the market, we believe that the market might grow at a rate of 10% to 12% in the coming years," he notes.

Wine in India may still be in its nascent stage, but it is a growing market and a substantial contributor to the economy.

The All India Wine Producers Association estimate that India produces 15 million liters wine per annum.¹⁹ It also estimates the consumption at 1.5 million cases i.e. 13.5 million liters per annum.

There is a grape plantation on 4000 hectors of land around India and an around 90 Grape Processing Units in the country.

All this translates to a total investment in the sector INR 2000 Corers in the Wine sector and generates employment in these sectors to 45,000 persons.

Key statistics of this economical impact is illustrated in Table 2.1

Table 2. 1 Statistics - Indian Wine Industry

Abbildung in dieser Leseprobe nicht enthalten

Source: Key statistics of the Indian wine industry 2011

It is difficult to get exact figures of the Wine industry in India, as there is little official compiled data on this Industry.

The Foreign Agricultural Service of the USDA in their Global Agricultural Information Network (GAIN) Report has compiled one of the most comprehensive historical reports of the Wine Industry in India.

According to this report (Sood, 2012), there has been a steady growth in India’s wine production from 2000 to 2012. There was a slow down in this economy after the 2008 Mumbai terror attacks, as tourism dropped and demand for wine also declined rapidly. However, there has been an increase both in production and consumption since 2008 upto 2012.

This is a growing and blossoming Industry. The Government has recognized this and there have been numerous positives steps taken by the Government, both on the National and on the State level to aid this Industry.

The Indian Grape Processing Board (IGPB) is currently working on a Wine legislation and grading system to regulate the industry. This is expected to create an improved industrial standard and help to create an Identity for Indian wines in the International market.

According to the IGPB, India is now part of the International Organisation on Vine and Wine (OIV) and this helps the Wine makers in India in adopting international standards, rules, regulations and laws concerning Wine production and therefore acceptability of Indian wine.

With Maharashtra being the largest Wine-producing region, state body Maharashtra Industrial Development Corporation (MIDC) has also moved in a very positive forward direction to aid the growth of the Wine Industry.

The Grape Processing Industry Policy, 2001 in Maharashtra (Policy Extract attached in Appendix B) has given a large number of incentives to the Wine manufacturer and Vine growers.

Salient features of this policy include:

i) Declaration as a Preferential Area

As the Winery industry does not fall in the preferential area of granting loans, the financial institution like National Bank for Agriculture and Rural Development (NABARD) does not grant loans in such industries. Therefore, to get the high price of the product for farmers and to create better employment in the state, NABARD has been requested to declare preferential area for Winery Industries, enabling to grant such requisite loans.

ii) Declaration as a Small Scale Industry

Within the limits of investments prescribed for the Small Scale Industry (SSI), wineries should be considered as a Small Scale Industry. The Indian Companies Act and other industrial governing bodies offer numerous concessions to a unit registered as a SSI.

iii) Concessions in Excise Duty

For those wine industries whose production has been started before 19th September, 2001, the excise duty will be charged at the rate of 50 per cent of the production expenditure incurred by such units instead of present 100 per cent rate.

For those wine industries whose production have been started or would be started on or after 19th September, 2001, the excise duty will be charged at the rate of 25 per cent of the production expenditure incurred by such units. Such concessions will be admissible for period of 5 years

iv) Concessions in Sales Tax

It has been decided with the consent of all states in the country that the floor rate of Sales Tax on liquor will be at the rate of 20 per cent. However, the Wine Process is totally different from the Liquor Production Process and wine unit is considered as agriculture process unit by the Central Government. Therefore, to encourage the Grapes Processing Industry in the state, a request is made by the Government of India to reduce the floor rate of Sales Tax on wine.

v) Wine Sales License and Fees

Wine will be permitted for sale in Beer Bars and licenses will be given to Wine Bars to sell wine on the basis of Beer Bars. An amount of Rs. 5000/- per year will be charged for License Fee for the sale of wine and this rate will not be changed for next 10 years. In comparison to license fees for other alcohol products, this is a very low price.

vi) Establishment of Wine Institute

To maintain the quality of Wine at the International Level and to make available trained manpower, a separate Wine Institute will be established. For setting up of the Wine Institute, Government/ MIDC will allot the plot at the nominal rate as given to the other educational institute. Such Institute will look after the work of training, checking the quality of wine, research and information center for the Wine Industry.

The first of these institutes is to be established in Sangli and Nasik. The support from the Government, both from the Central and State level, to the wine manufacturers is a boost to the wine economy and wine production in India.

vii) Wine tourism

Wine tourism is in its infancy in India. It may be a fashion to attend wine launches and one is considered a socialite, if wine is served at parties.

There is a growing out flux of tourists travelling to old world wine countries. Food and wine has no language barriers and translates quickly to tourism money anywhere. There is a tremendous opportunity for regional vineyards market wine tour packages.

Wine tourism is now acknowledged as a growing area of special interest tourism throughout the world. It is an increasingly important tourism component or for many wine producing regions. With its wide range of benefits, including foreign exchange earnings, the creation of both full and part time jobs and the generation of the secondary economic activity, wine tourism is emerging as a lucrative industry sector with the ability to generate substantial long-term wealth and sustain steady tourism growth for these regions. Consequently, support and investment in the wine tourism sector is now regarded as an essential economic development strategy by government and by the wine and tourism industries.

As an emerging activity, wine tourism has been identified as one of a few tourism sectors that is genuinely concentrated outside traditional metropolitan areas and, hence, is viewed as playing a vital role in regional development, employment generation, business growth, tourism, and corporate investment. It is not surprising therefore, that the wine tourism phenomenon has taken on truly global proportions with individuals from both sides of supply chain coming together to offer a broad range of wine tourism experiences in most of the world’s wine producing regions.

Europe, of course, and France in particular leads the way with many well-established wine tourism experiences including the popular Beaujolais, Bordeaux, Burgundy, and Champagne. Differentiation is central to achieving the competitive edge required for survival and growth. There is a need to understand the attributes influencing wine tourist decision in selecting wineries to visit and wines to purchase, as well as whether customers will repeat their retail and cellar-door purchasing.

It has been suggested that many wine producers have often been captured by tourism operators and other non wine businesses, while wineries themselves have been left to bear the cost of providing the experience. While the payback to the tourism industry is obvious, the payback to the wineries is less clear. This may in part be explained by the fact that many wine producers do not perceive themselves as offering a tourist product and are unaware of how to best attract visitors to their vineyard.

Effective wine tourism involves giving customers that visit a vineyard, an experience that educates them about wine and offers an avenue of brand building. It is on this benefit that many vineyard operators focus and use as a means of introducing and promoting their product.

Most visitors to wineries are unlikely to repeat the visit in the near future. However, benefit to the winery may derive from visitors seeking out the wineries wine when they get back home and through word-of-mouth referral.

Among the top 10 wineries of the country 6 wineries are situated in Nasik district. Apart from it almost 2/3rd of total wineries in India are situated in Nasik District. Nasik is also hub of grape production. In fact that is the reason for growth of wineries in the area.

Due to the moderate climate, sufficient rainfall and sophisticated culture Nasik is emerging as an ideal tourist destination for non-traditional types of tourism. Growth of wineries and grape farms make it possible to the lead the wine tourism map of the country. Nasik has an advantage of being in close vicinity to Mumbai & Pune and having excellent infrastructure for the tourist.

Taj Residency, Nasik & Sula Vineyards, Nasik have joined hands to promote tourism offering you to spend 2 nights and 3 days with us and go back as a wine connoisseur.

2.3 Development of wine in India

The Indian Wine market has grown in leaps and bounds over the last decade. The first wineries in India were established in the 1980s and for the next twenty years, till 2000 there were just six operating wineries. (Rathore, 2006)

In the Gain report, Wine Market Update 2012 (Sood, 2012), the development of this Industry is outlined. The decade following 2000 saw an increase in wineries jump to over 90.

Production subsequently expanded rapidly, peaking at an estimated 13.0 million liters (1.4 million cases) in 2010, before dropping in 2011 and 2012.

Abbildung in dieser Leseprobe nicht enthalten

Figure 2.1 Wine trends

Abbildung in dieser Leseprobe nicht enthalten Source: Wine Market Update 2012 - IN2162

Wine grape production takes place in the state of Maharashtra in the higher elevations around Nashik, Sangli and Pune and the state of Karnataka in the Nandi Hills near Bangalore. Maharashtra accounts for about two-thirds of domestic wine production. The state of Goa, a former Portuguese colony, produces an estimated 300,000 liters (33,300 cases) of port wine, but does not produce grapes. (Gore, 2008).

The development of the Indian Wine industry (Arora, 2012), from its infancy to current is illustrated in Figure 2.2

Abbildung in dieser Leseprobe nicht enthalten

Figure 2.2 Development of Wine Industry - India

Abbildung in dieser Leseprobe nicht enthalten

The Indian wine industry is just over three decades old, and the majority of development and progress has occurred in the last decade.

2.3.1 Development highlights

Highlights of the development history of Indian Wine (Western Australia Trade Office - India, 2012) as illustrated in Figure 2.2 include

i) 1985

Sham Chougule started his 'Champagne Indage Ltd.' facility at Narayangaon in 1982 in technical collaboration with Champagne Technologie, a division of Piper-Heidsieck. The first bottles of Omar Khayyam, a methode traditionnelle sparkling wine supposedly from classic French Champagne grapes, went overseas in 1985; the wine was launched in 1986 in India as Marquise de Pompadour.

ii) 2000 – 2005

Over 60 Wineries are registered and operational, a jump from a meager 6 wineries from 1982 to 2000

iii) 2001

To promote the Indian Wine Industry, Maharashtra introduces numerous subsidies, facilities and promotion for the Wine Industry in its 2001 Grape Processing Industrial Policy

iv) 2010

After a drop in wine sales and subsequent production due to the 2008 Terror Attacks in Mumbai, the Indian Wine market booms with a record Production of 14,41,000 Cases of Wine. (Sood, 2012)

v) 2010

In a first ever joint representation, eight Indian wine makers get together and exhibit their wines at the London International Wine Fair. They create an “India Pavilion”. The newly formed Indian Grape Promotion Board (IGPB) assists them.

vi) 2012

With the growing acceptance of Indian Wines and the growth of the Indian wine industry the Government, (Karnataka Wine Board, Ministry for Food Processing and National Horticulture Board), in a first of its kind event sponsored and organized an International Wine Festival In Bangalore. (Unknown, 2012)

vii) 2013

The Indian Grape Promotion Board (IGPB) proposes to introduce "National Wine Standards”. India is now part of the International Organisation on Vine and Wine (OIV)

With these developments and the growing wine industry, it is evident that Wine is finding increasing acceptability by the Indian Consumer. Before 2000 most of the wine available in India was either in 5-Star hotels, specialty Restaurants or persons who travelled abroad were exposed to a wine culture. The only locally available wine was Port from Goa.

Given the unavailability of wine to the general consumer, a fair amount of perceptions surrounding wine emerged.

2.4 Indian wine manufacturers

In his book “The Complete Indian wine guide” Aakash Rathore gives details of Indian grapes, wines and wine manufacturers.

Only six Indian wineries existed in 2000. This number has gone up to over 65 today. Of these, 85% are in the Nasik Pune belt. Table grapes have traditionally been grown always in this region and now there is an emerging emphasis being placed on cultivating vitis vinifera (wine) grape varieties. Of the total winegrape production in India 90% is grown in the state of Maharashtra. The varieties of grapes include Shiraz, Cabernet Sauvignon, Merlot, Chenin Blanc and Chardonnay.

The more prominent domestic wine manufacturers are listed below.

i) Chateau Indage

Estimated Production: 400,000 Cases Chateau Indage was one of the earliest and largest Indian winery by volume and value. It is known as one of the pioneers of the Indian wine industry and was launched in 1986 at Narayangaon, Maharashtra They have achieved great success with their wine range of wines and their popularity among the Indian population. In addition to its proprietary label, Chateau Indage produces wine under the names Riviera, Figueira, Ivy and Chantilli. (www.indagegroup.com)

ii) Sula Vineyards

Estimated Production: 300,000 Cases Sula Vineyards launched in 2000 with the simple strategy of offering high quality wines at multiple price points. After producing its first bottle of wine in 2000, Sula production rose to 85,000 cases in 2005, 220,000 cases in 2007, and is estimated to produce 300,000 cases in 2008. (www.sulawines.com)

iii) Grover Vineyards

Estimated Production: 100,000 Cases Grover Vineyards, north of Bangalore, was established in 1989 with a focus on delivering quality wines. Grover Vineyards has a successful French collaboration and exports 25% of its production every year (about 25,000 cases) (www.groverwines.com)

iv) Chateau d'Ori

Estimated Production: N/A Chateau d’Ori is the creation of Mr. Ranjit Dhuru, a successful Indian businessman and Wine Lover. Mr. Dhuru, along with an active team of professionals, has leapt into the Indian wine industry with a focus on quality. Chateau D'Ori's vineyards are top-notch, and the newly built winery offers a first-rate combination of tradition and technology. Chateau D'Ori's wines have already made a splash in India, winning various medals for both their red and white varietal wines and the company are actively looking to expand its role in the emerging Indian wine industry. The Chateau d’Ori establishment consists of a single piece of well developed vineyards measuring one hundred acres at the base of the twin hills of Nhera-Ori at Dindori, Nashik. Another 300 acres were developed and started yields by 2010 .

(http://www.chateaudori.com)

v) Vinsura

Estimated Production: 25,000 Cases Sankalp Winery Pvt. Ltd. was formed in 2003 by a group of Indian horticulturists from Nashik, Maharashtra. The winery is located inside the Vinchur Wine Park. Mr. Khadangle, Mr. Holkar and Mr. Nathe make the core management team. Mr. Khadangale has specialized in chemistry, Mr. K...Holkar is a horticulturist, and Mr. Nathe is a management expert.

(www.vinsuras.com)

vi) ND Wines

Estimated Production: 50,000 Cases ND Wines is located outside of Nashik and began its company operations as an exporter of Indian table grapes. (www.ndwines.com)

vii) Vintage Wines (Reveilo)

Estimated Production: 11,000 Cases Vintage Wines, located near Nashik, is known to produce high quality wines under the Reveilo label. Their production is reported to be small (near to 100,000 Liters) and they produce Reveilo Syrah, Cabernet Sauvignon, Chardonnay, and Chenin Blanc.

viii) UB Group (Zinzi & Four Seasons)

Estimated Production: N/A The company is looking to position its wine brands to gain advantage of the Indian market. The brand Zinzi is in the value-for-money category with products priced between Rs 275 and Rs 300.

Four Seasons, the UB brand to be launched after Zinzi, will be available in the premium Indian wine category with prices starting from Rs 375. The company expects the acreage of its total grape cultivation to increase to 2,500-3000 acres in the next 3-5 years at its winery in Roti village near Baramati.

(http://www.theubgroup.com)

ix) Seagram's - Nine Hills

Estimated Production: N/A Seagram's Nine Hills wine gets its name from the nine hills surrounding Nashik where the company's winery and the vineyards are located. The Nine Hills varietal range includes Shiraz, Cabernet Sauvignon, Chenin Blanc and Sauvignon Blanc. Pernod Ricard India, a Pernod Ricard Group Company, the world's second largest wine and spirits conglomerate, is a name that is synonymous with global wine brands such as Jacob's Creek (Australia), Montana (New Zealand), Mumms Champagne (France) and Mumm Napa Valley (USA).

(www.seagramindia.com)

x) Vinicola Private Limited

Estimated Production: N/A Three decades ago, Vinicola was set up to make wine in the Indian State of Goa. Today, Vinicola produces a range of port, red and white wines using traditional techniques, and sells the resulting product largely in Goa.

xi) Flamingo Wines

Estimated Production: N/A Flamingo Wines is the second winery in the Vinchur Wine Park outside Nashik, and produces a reasonable range of wine.

2.5 Indian grapes and wine

The states of Maharashtra and Karnataka in India’s southwest are the key regions for growing wine grapes. Nasik is known as the Wine Capital of India, a large majority of Indian wineries are based there. Some of the key viticulture regions are Sangli, Sholapur, Pune, Satara, Latur and Osmanabad (all in Maharashtra), Bijapur, Bagalkot, Belgaum, Gulberga and Bangalore (in Karnataka) and Hyderabad, Ranga Reddy, Mahbubnagar, Anantapur and Medak (in Andhra Pradesh). All of these are between 15° and 20° N latitude in the tropical zone. Maximum temperature is 42°C and minimum 8°C, with a credible change in day and night temperature. Vines do not go dormant in the winter. Double pruning and a single pre-summer harvest is the general practice in the region.

2.5.1 Wine Grape

The grape consists of a number of elements:

- Skin – which provide tannins and colour
- Stalk – which provides tannins
- Pips – provide bitter oils
- Pulp – contain sugar, fruit acids, water and pectin’s.

The yeast required for the fermentation process is found on the outside of the grape skin in the form of whitish bloom.

The colour in wine comes mainly from the skin of the grape, being extracted during the fermentation process. Red wine can only be made from red grapes. However, white wine can be made from white or red grapes. Provided that, in the case of red grapes, the grape skins are removed before fermentation begins.

2.5.1.1 Red grape varietals

i) Cabernet Sauvignon

This superstar can make easy drinking and deeply complex wines, usually reminiscent of cassis, cedar and blackcurrant. In India, there is a blackcurrant cordial, stalky note in the wines.

ii) Grenache

Produces fruity high alcohol wines with raspberry flavours. However, it is usually made into meaty, spicy wines of medium to full body, and used as main ingredient in some interesting Rosés and fortified wines.

iii) Malbec

From Bordeaux, made its home in Argentina. It is inky purple with violets and lush fruit aromas. The wine has strong, ripe tannins. Fruit flavours along the blackberry spectrum with hints of raisins and tobacco.

iv) Merlot

Its soft and generous texture makes it a favourite for many. In India, it tends to complement a Cabernet blend, adding softness and plummy fruit flavours and gives the wine more weight and balance on the palate.

v) Nero D’Avola

Sicilian native, this grape is planted in experimental quantities in India. The wines are robust yet soft. They can be concentrated, with dusty aromas (vanilla and coconut from the maturation in oak) and dark berries, plums and spice.

vi) Pinot Noir

One of the noblest grapes producing wines with lovely texture and complexity. A very fickle grape, its wines are fragrant and medium weight with aromas of cherry and truffle.

vii) Sangiovese

An Italian grape, Sangiovese produces exceptional long-lived wines. It is generally medium to full-bodied and savoury in style, often with an aroma and flavour of sour cherries.

viii) Shiraz

Produces spicy medium to full bodied wines with flavours of leather, roasted meats and plum. Indian Shiraz is fruit-driven, with red berries and even berry jam. The wine is rich and the use of oak gives a sweet note on the nose and the palate.

ix) Tempranillo

This Spanish classic is often blended with Garnacha to produce a range of styles from aromatic strawberry-scented medium weight wines, to full-bodied, savoury wines that age well.

x) Zinfandel

From an Italian ancestry, it produces a rich and voluptuous (aroma of Christmas cake) wine. Indian examples are true – full-bodied, with a slight earthy and spicy nose. The wines are juicy with red fruit on the palate.

2.5.1.2 White grape varietals

i) Chardonnay

Versatile and adaptable, Chardonnay can produce fresh medium-bodied to powerful full-bodied, which respond well to oak aging. It has distinctive peach, melon and pineapple characteristics. Oak aged, it can smell a bit buttery with hints of honey.

ii) Chenin Blanc

Gives medium to full-bodied wines ranging from bone dry with biting acidity to sweet. Indian Chenin has distinct apple-like flavours, in warm areas they show a hint of ripe mango and passion fruit. Some residual sugar carries the fruity flavours.

iii) Clairette

Originally from the Rhone, it produces wines that are a musky and perfumed and appear rich on the palate with high levels of alcohol. This is a blend varietal in India, with the Viognier it gives a rich and slightly sweeter mouthful.

iv) Grillo

The Sicilian grape is traditionally made into a fortified wine Marsala. In India it produces a rich, fairly high-alcohol wine with distinctive lemon-citrus aromas. On the palate, the wine is quite robust.

v) Muscat

This grape is a true chameleon. On the one hand it produces light, grapey, easy-drinking sparkling wines and some crisp dry whites with some aging potential to luscious and unctuous dessert styles.

vi) Riesling

This classic grape yields light to medium-weight wines characterised by citrus and floral scents backed by steely acidity. The wines are usually dry. The best examples are generally from cooler climates.

vii) Sauvignon Blanc

Gives fresh and fruity wines smelling of passion fruit and gooseberry. The wines can smell a bit like freshly cut grass with hints of asparagus and capsicum. Indian varietal tastes true. The acidity is quiet prominent, making a refreshing wine.

viii) Semillon

In Sauternes it produces the finest dessert wines. It can also make dry and fairly neutral wines. It is not unusual to find off-dry examples of Semillon in India that can be quite fruity with citrus and pineapple aromas.

ix) Ugni Blanc

A neutral-tasting, highly acidic variety that does well in blends. It is, in its neutrality of flavour, similar to many Italian grape varieties. Ugni Blanc produces wines of generally lower alcohol.

x) Viognier

A difficult grape to grow but can produce characterful wines reeking of apricot and blossom. Indian Viognier is medium to full-bodied and very aromatic. There are elements of ripe papaya, apricots and even some exciting floral notes.

2.5.1.3 Factors that influence the quality and final taste of wine

The same wine variety, grown in different regions and processed in different ways, will produce wines of differing characteristics. The factors that affect the quality and final taste of wines include:

Abbildung in dieser Leseprobe nicht enthalten

2.5.1.4 Vine diseases

The vine is subject to pests and diseases in the form of birds, insects, fungi, viruses and weeds. The main ones are given below:

i) Phylloxera vastatrix

A louse-like almost invisible aphid, which attacks the roots of the vine. Phylloxera arrived in Europe in the mid 1800s almost by accident, transported on American vines imported into various European countries from the eastern states of North America. It ravaged many of the vineyards of Europe at this time. the cure was to graft the European vine onto resistant American rootstocks. This practice has since become standard throughout the world wherever Vitis viniferous is grown.

ii) Grey rot or Portraiture gris

This fungus attacks the leaves and fruit of the vine during warm damp weather. It is recognized by a grey mould. The fungus imparts an unpleasant flavour to the wine.

iii) Noble rot or purriture noble (Batrytis cinera)

This is the same fungus in its beneficent form, which may occur when humid conditions are followed by hot weather. The fungus punctures the grape skin, the water content evaporates and the grape shrivels, thus concentrating the sugar inside. This process gives the luscious flavours characteristic of Sauternes, German Trockenbeerenaulese and Hungarian Tokay Aszu

2.1.5.5 Faults in wine

Faults occasionally develop in wine as it natures in bottles. Nowadays, through improved techniques and attention to detail regarding bottling and storage, faculty wine is a rarity. Some of the more common causes of faulty wine are given below.

i) Corked wines

These are wines affected by a diseased cork caused through bacterial action or excessive bottle age. TCA (tricholoroanisole) causes the wine to taste and smell foul. This is not to be confused with cork residue in wine, which tastes ‘spoilt’.

ii) Acetification

This is caused when the wine is over exposed to air. The vinegar microbe develops a film on the surface of the wine and acetic acid is produced, making the wine taste sour, resembling wine vinegar (vin vinaigre).

iii) Tartare flake

This is the crystallization of potassium bitartrate. These crystal like flakes, sometimes seen in white wine, may cause anxiety to some customers as they spoil the appearance of the wine, which is otherwise perfect to drink. If the wine is stabilised before bottling this condition should not occur.

iv) Excess sulphur dioxide(SO2)

Sulphur dioxide is added to wine a preserve it and keep it healthy. Once the bottle is opened, the smell will disappear and after a few minutes, the wine is perfectly drinkable.

v) Secondary fermentation

This happens when traces of sugar and yeast are left in the wine in the bottle. It leaves the wine with an unpleasant, prickly taste that should not be confused with the petulant or spritzing characteristics associated with other styles of healthy and refreshing wines.

vi) Foreign contamination

Examples include splinted or powdered glass caused by faulty bottling machinery or re-used bottles which previously held some kind of disinfectant.

vii) Hydrogen sulphide

The wine smells and tastes of rotten eggs and should be thrown away.

viii) Cloudiness

This is caused by suspended matter in the wine, which disguises its true colour. It may also be caused by extremes in storage temperatures.

2.1.5.6 Wine tasting

In her book “Great wine made simple” Andrea Immer talks of wine tasting and the importance of developing a “nose” for wine. (Immer, 2000). She describes the nuances involved in tasting wine.

She says that the wine waiter, or sommelier, must have an extensive knowledge of the contents of the wine list. In addition, he or she should have a good knowledge of the characteristics of the different wines and other drinks offered. To develop these skills and knowledge a professional approach to tasting must be adopted. The details below mainly relate to wine tasting but the techniques are similar for a range of other drinks.

i) Professional tasting

The tasting, or evaluation, of wine and other drinks is carried out to:

- Develop learning from experience
- Help in the assessment of the quality of a wine in terms of value (the balance between price and worth) when making purchasing decisions
- Monitor the progress of a wine which is being stored, to determine the optimum selling time and as part of protecting the investment
- Assist in the description of a wine when explaining its qualities or deficiencies to customers
- Provide a personal record of wines tasted, which helps to reinforce the experience and the learning.

To appreciate the tasting of wine to the full it should be carried out in an environment that supports the wine evaluation process. That is with:

- No noise to distract the taster
- Good ventilation to eliminate odours
- Sufficient light (daylight rather than artificial if possible), preferably north facing in the northern hemisphere (south facing in the southern hemisphere), as the light is more neutral

The tool of the taster is the glass, which must be the correct shape. A wine glass with a stem and of sufficient capacity should be chosen. The glass should be fairly wide but narrowing at the top.

This allows the elements making up the bouquet to become concentrated and thus better assessed. The wine tasting glass should never be filled to more than one-third capacity. This allows the taster to swirl the wine round the glass more easily. It goes without saying that the tasting glass should be spotlessly clean.

ii) Professional approach

The purpose of the wine tasting is to attempt to identify characteristics that describe the wine, which are then used to assess its quality. When undertaking professional tasting it is important to be logical in the approach and to always follow the same sequence. The professional tasting, or evaluation, of wines includes three key stages:

a) Recording the details of each individual wine.
b) Looking at, smelling and tasting the wine.
c) Recording the findings.

Approaching the process in this way ensures the development of confidence and the ability to make sound judgments

a) Recording wine details

To ensure a complete record of the tasting of each wine, it is important to record the following details:

b) Looking at, smelling and tasting the wine

When tasting the wines there are two sets of factors to be considered. The first are to do with assessing and evaluating the characteristics of the wine and making a judgment about its quality. The second are to do with identifying taste and aroma associations.

Professional wine tasting is really an analysis and evaluation of qualities of the wine by the senses.

This includes:

Looking at the wine to assess its clarity, colour and intensity, and the nature of the colour by identifying the specific shade of white, rose or red from smelling, or nosing, the wine to assess the condition of the wine, the intensity of aroma or bouquet, and to identify other aroma characteristics. Taste is 80 per cent smell!

- Tasting the wine to assess the sweetness/dryness, acidity, tannin, body, length and other taste characteristics
- Touch, to feel the weight of the wine in the mouth, the temperature, etc.
- Hearing, to create associations with the occasion
- Drawing conclusions about the evaluation (summing up) and making a judgment of the quality of the wine (poor, acceptable, good, outstanding).

c) Recording the findings

It is important to immediately record the findings of the particular wine so that a compilation of various wines tasted can be made.

Examples of the terms that might be used as part of the evaluation of the wine are given in Table 2.2

Table 2.2 Wine tasting terms

Abbildung in dieser Leseprobe nicht enthalten

Source Great wine made simple 2000

iii) Tasting technique

After assessing the clarity, colour and the smell, take a small amount of the wine in the mouth together with a little air and roll it around so that it reaches the different parts of the tongue. Now lean forward so that the wine is nearest the teeth and suck air in through the teeth. Doing this helps to highlight and intensify the flavour. (Fortified wines, spirits and liqueurs are often assessed by sight and smell without tasting.)

When tasting the following should be considered:

The taste-character of the wine is detected in different parts of the mouth but especially by the tongue: sweetness at the tip and the center of the tongue, acidity on the upper edges, saltiness on the tip and at the sides, sour at the sides and bitterness at the back.

Sweetness and dryness will be immediately obvious.

Acidity will be recognised by its gum-drying sensation, but in correct quantities acidity provides crispness and liveliness to a drink.

Astringency or tannin content, usually associated with red wines, will give a dry coating or furring effect, especially on the teeth and gums.

iv) General grape and wine characteristics

There are a number of grapes that have distinctive characteristics.

As well as describing and assessing the quality of the wine, many people also find it useful to apply a range of aroma and taste associations. Some examples of common aroma and taste associations are given in Table 2.3

Table 2.3 Taste and aroma of important grapes

Abbildung in dieser Leseprobe nicht enthalten

Source: Great wine made simple, 2000

Other aroma and taste associations can include: pine trees, resin, vanilla, coffee, tea, herbs, smoke, toast, leather, cloves, cinnamon, nutmeg, ginger, mint, truffles, oak, figs, lilac and jasmine.

v) Recommending wine

A few general pointers are set out below that may be followed when advising the customer on which beverage to choose to accompany a meal. However, it must be stressed that customers should at all times be given complete freedom in their selection of wines or other drinks.

Aperitifs are alcoholic beverages that are drunk before the meal. If wine will be consumed with the meal, then the aperitif selected should be a grape (wine-based) rather than a grain (spirit-based) aperitif, since the latter can potentially spoil or dull the palate.

The aperitif is usually a wine-based beverage. It is meant to stimulate the appetite and therefore should not be sweet. Dry and medium dry sherries, dry vermouths and Sercial or Verdelho Madeira are all good examples of aperitifs.

Starter courses are often best accompanied by a dry white or dry rose wine.

National dishes, should normally be complemented by the national wines of that country. For example, an Italian red wine is had with pasta dishes.

Fish and shellfish dishes are often most suited to well chilled dry white wines. Red meats such as beef and lamb blend and harmonise well with red wine.

White meats such as veal and pork are acceptable with medium white wines.

Game dishes require the heavier and more robust red wines to complement their full flavour.

Sweets and desserts are served at the end of the meal and here it is acceptable to offer well chilled sweet white wines that may come from the Loire, Sauternes, Barsac or Hungary. These wines harmonise best with dishes containing fruit.

The majority of cheeses blend well with port and other dry robust red wines. Port is the traditional wine harmonising best with Stilton cheese.

The grain- and fruit-based spirits and liqueurs all harmonise well with coffee. (Andrews, 2008)

A listing of pairing of food and wine is given in Tables 2.4,2.5 and 2.6 for the various courses of a meal

Table 2.4 Wine and Food pairing (Appetizers and fish)

Abbildung in dieser Leseprobe nicht enthalten

Source: Food and Beverage Service (Eight Edition ed.), 2010

Table 2.5 Wine and Food pairing (Meats)

Abbildung in dieser Leseprobe nicht enthalten

Source: Food and Beverage Service (Eight Edition ed.), 2010

Table 2.6 Wine and Food pairing (Cheeses and desserts)

Abbildung in dieser Leseprobe nicht enthalten

Source: Food and Beverage Service (Eight Edition ed.), 2010

2.5.2 Wine regions in Maharashtra

The Western Australia Trade Office in India (Western Australia Trade Office - India, 2012) complied a report on the Indian wine industry. The main wine regions in Maharashtra and vineyard practices are detailed in the report.

i) Nasik

One of the fastest growing cities of India, Nasik is called 'the wine capital of India' and has the largest concentration of wineries in India. A high standard of living is matched by well developed infrastructure.

a) Geography: Located at latitude 20N and longitude 73E and at an altitude of 565 metres above sea level.
b) Climate: A mild climate for the most part of the year. The summers from March to June are about 40°C, so the grapes are grown in winter. The winters from November to February are mild and dry with warm days and cool nights. An occasional cold wave could bring the temperature down to below normal.
c) Soil: Red laterite soils, well balanced and free from all contaminants.
d) Grape Varieties: Sauvignon Blanc, Chenin Blanc, Viognier, Chardonnay, Riesling, Shiraz, Cabernet Sauvignon, Merlot, Malbec, Zinfandel and Tempranillo.
e) Vineyard practices: The vines are planted either on their own rootstock, or grafted on Dodridge, Saltcreek, SO4 etc. Vines are planted on slopes to facilitate good drainage. Plantation is done in late December and early January. Pruning of 2-6 buds in September and another pruning in April, ahead of the summer, keeps the grapes dormant in the hottest period.
f) Harvest: Manual harvesting is done early morning or late night, normally below 20°C. Sorting and collection of the best bunches is followed. White grapes are pressed in whole bunch, red are de-stemmed and then pressed.

ii) Baramati

On the banks of river Karha, Baramati is a noted historical city of Maharashtra. Its suitable climate and soil quality makes it an important grape growing region of India.

a) Geography: Located in the Sahyadri Valley at latitude 18N and longitude 74E, at an altitude of 537 metres above sea level.
b) Climate: Warm summer from March to May, day temperature could be 40°C. Cold and dry winters from November to February, the mercury could fall to 8°C. About 600 mm of rainfall between June and August. The long warm days and cool nights in the region lend good colour, maturity and flavour to the grapes.
c) Soil: The soil is skeletal gravel, which is low in fertility but high on porosity.
d) Primary Grape Varietals: Sauvignon Blanc, Chenin Blanc, Viognier, Shiraz, Cabernet Sauvignon, Merlot, Zinfandel
e) Vineyard practices: Various rootstocks are used for plantation on the slopes of the Sahyadri Valley with drip irrigation and water soluble fertilizers. Two prunings every season; forward pruning in September-October and back pruning in April. Harvesting of selected bunches is done by hand.. A low yield maintains high quality of the grapes.
f) Harvesting season: White grapes are harvested 110 to 120 days after pruning and red grapes 150 to 170 days after pruning. The harvesting season starts in January and finishes by the end of March.

iii) Pune

Pune has a rich history, besides being an important information technology hub with a high per capita income .

a) Geography: Located in the Sahyadri Valley of the Deccan Plateau at latitude 19N and longitude 73E, at an altitude of 800 metres above the sea level.
b) Climate: Warm days and cool nights during the growing season. Annual range is between 12 and 42°C while the average temperature is 28°C. Rainfall is about 850 mm.
c) Soil: Light to medium in density, loamy and mineral rich. The soil has very good drainage.
d) Primary Grape Varietals: Sauvignon Blanc , Chenin Blanc , Chardonnay, Semillon, Viogner, Ugni Blanc, Cabernet Sauvignon, Shiraz, Zinfandel, Merlot, Pinot Noir, Grenache, Temprenillo and Cinsault.
e) Vineyard practices: The Dodridge is the popularly used rootstock for the manual plantation, others being So4, Ru140, Farcal and 3390C. Drip irrigation, water soluble fertilizers and pesticides are used. Two prunings are done every season in April (to develop the canes) and October (for the yield).
f) Harvesting: Starts in January and ends by March. Harvesting is usually done late in the evening, and crushing usually takes place early in the morning.

2.6 Perceptions of wine consumption.

Wine has always been a drink surrounded by a certain amount of mystery. There are various myths and misconceptions still held by people about wine.

In the July 2008 edition of Go Now, Subhash Arora, President of the Indian Wine Academy wrote an article titled “Myths and Misconceptions about Wine”

He writes “interacting with wine lovers, I have realized that many people in India and in fact even around the world believe in dozens of myths, half-truths and have many misconceptions about wine”

He further goes on to identify the most common misconceptions and gives an explanation to discredit these misconceptions.

i) Wine gets better with age

The truth is that over 95% of the wine produced is meant to be drunk young. A maximum of 1- 2 years after the harvest keeps them fresh and drinkable after which it starts losing freshness and fruitiness. It holds more for whites but most reds suffer from this factor too.

Generally, all low-end, inexpensive wines are meant to drink young and don't improve in the bottle after release.

Only about 1% of wines have a potential to get better. For example, a Mouton- Rothschild 1945 is still drinkable whereas any Beaujolais Nuoveau released in November, 2007 is past its prime.

ii) Bordeaux wines are the best

Although some of the world's best wines continue to be crafted in Bordeaux, some of the worst are also produced there. In fact a barrel of bulk wine from Bordeaux can cost less than Rs.100. There are hundreds of cheap white wine labels available.

iii) Drink White wine chilled and Red wine at room temperature

Though white wine is better had chilled, the temperature at which it is ideally consumed is around 100 to 120 C. Room temperature for Red wine is traditionally referred to the cellars of Europe where the room temperature is around 140 to 160 C. It does not refer to Indian room temperatures of 280 to 350 C

iv) Imported wines are better than Indian wines

Obviously with centuries of wine making experience, coupled with facing and surviving global competition, majority of international wines have an edge over Indian wines, which are still at a nascent stage. However, with the quality of many Indian wines going up and a continuing influx of cheap and bulk wine at the low price points, Indian wines can hold their own.

Grover and Sula make some very palatable wines and many new producers like Chateau d'Ori, Vintage Wines, Chateau Banyan and Nine Hills make wines of a high standard.

v) More expensive the wine, better it is

While it is true that cheaper wines cannot be fine wines due to the inherent higher cost of production of quality wines, they can also command prices due to the branding and market perception. A positive rating by a well-known wine expert like Robert Parker can result in the price shooting up Additionally, in India, with the import duties levied on imported wine, a cheap table wine from Europe can be sold at a fairly expensive rate in the Indian retail market. This does not necessarily mean it is of a better quality.

A research study on this subject was conducted in the USA, where consumers were asked to rate wines based on taste only. They were not given the name or brand of wine, not were they informed of the price of the wine. (Goldstein R. , Almenberg, Dreber, Emerson, Herschkowitsch, & Katz, 2008)

The study was titled “Do more expensive wines taste better? Evidence from a large sample of blind tastings “

In this study, a large sample of more than 6,000 US blind tastings, compiled by food and wine critic Robin Goldstein. Blind tastings offered the opportunity to isolate the experience of the wine itself from psychological confounds related to its price, presentation or published expert ratings.

The relationship between price and the subjective appreciation of wines, when the price is unknown to the tasters, was studied. Subjective appreciation was measured by overall ratings assigned to wines by individual participants.

The main finding was that, on average, individuals who were unaware of the price did not derive more enjoyment from more expensive wine. In fact, they enjoyed more expensive wines slightly less.

The study concluded that, in a large sample of blind tastings, the correlation between price and overall rating was small and negative. Individuals on average enjoyed more expensive wines slightly less. The results suggested that price tags were a poor guide for non-expert wine consumers who care about the intrinsic qualities of the wine.

Indian wine is still a very new product in the market. Over the years, most of the luxury hotels have been importing wine for their customers.

An interesting article by Vir Sanghvi in the Hindustan Times Brunch on 23 September 2011 illustrates the differential pricing for imported wines in India. He has titled the article as “Wine’s cheat sheet”

In this article he compares the prices charged by different 5-star hotels around Delhi for the same bottle of a 1999 Mouton Rothschild. He found that the price could vary from Rs.28,900 per bottle at the Taj Palace to Rs.1,25,000 per bottle at the Leela Palace. These are prices without tax, as taxes vary depending on the kind of restaurant or hotel.

Until the time where Indian wines appeared in the market most of the exposure to wines were at these five star hotels. With pricing variations like this, it is easy to believe that wine is a luxury commodity, affordable by an elite few.

These perceptions may hold true for the general populace. However, it needs to be studied if wine consumers also harbor similar misconceptions.

It is imperative for the success of Indian wine, that these misconceptions and perceptions be removed.

Customer education is key to unlocking value in products and with education comes an increase in product usage intensity, loyalty and a willingness to explore Enthusiastic and educated customers may become more involved, and with the power of social media, may help stimulate demand.

The trade is pinning a lot of hope on wine education and those with higher levels of knowledge tend to consume more wine (Dodd, 2005)

Educated customers are poised to become champions for a product category of their liking. If they enthuse about their newly acquired skills and increased knowledge, they might stimulate demand because they will be seen by their peers as the ones able to give "referrals by a trusted source" (Stratten, 2010)

A study was carried out by the American Association of Wine Economists, by Richard Sagala in February of 2013. The evaluation was carried out in Quebec, Canada.

The study was titled “The impact of general public wine education courses on consumer perception”

The research question and its five sub-questions evaluated the consumer perceptions of what the value of wine education courses were and if they engaged the Quebec consumer.

Sub-questions:

1- Did wine education customers learn anything from attending the courses and if so, what is it?
2- Do wine education courses change perceptions in students mind? Are they engaging differently with the product, and in what way?
3- Do they know how to taste wine better and do they know their taste preferences better?
4- Do wine education courses lead to up-trading or cross-trading? Do they engage more discretionary money in the category?
5- Do wine education lead customers to intensify their relationship with wine, and to what degree?

The findings of this research revealed that the perceptions, behaviour and commitment towards wine changed as a result of having followed a wine appreciation course. There was an economic value creation for the proponent of the wine education courses, namely the retailer, who saw a majority of students wishing to buy more courses as well as recommending the SAQ courses to their peers.

Equally, a majority of students declared having increased their monthly wine-buying budget by 16%. Simultaneously, there was value creation as well for the customers. People widely declared that their behavior as a wine consumer changed in regard to wine. After the course, students declared knowing more about their taste preferences and trusted more their own palate. They were equally interested in pursuing their education and learn more. In addition, interest for food and wine pairing also increased.

Equally, there was shared value creation for consumers for the trade and society from the fact that enthusiasm and commitment to wine existed concomitantly with consuming wine in a socially responsible manner.

Three months after the course, the increase in wine consumption was only marginal and done in a context of eighty six percent (86%) of students valuing wine and gastronomy. Twenty four months later it was not 56% but 77% who declared spending more, declaring that their monthly budget was 16.5% more than when they started the course, showing a sustained spending commitment accompanied by a sense of empowerment and confidence when selecting and using the product.²⁰

There are innumerable books written about wines and wine tasting. Indian wine, though in its infancy, does not have too much written about it.

There have been two very detailed books about Indian wine. The complete Indian wine guide by Aakash Rathore (Rathore A. , 2006) provides a comprehensive exposition of every domestic Indian wine, not just the big three (Indage, Sula and Grover) available in India.

The author personally visited every functioning winery in India, tirelessly searching for the best wines, even from little-known and fledgling producers. Every single wine made in India and international wines easily available in India, are carefully tasted, described, and scored. This is a great guide for the Indian consumer to confidently select the best wines possible.

In his book “Wine Wisdom”, certified sommelier Magandeep Singh de-mystifies wine and makes it easy for a layman to understand the nuances of wine. He goes through the simple methods of classifying wine to the intricate process of tasting it, complete with instructions on what to say and when to say it.

He demystifies wine labels and restaurant wine lists, gives practical tips on ordering the perfect wine together with a phonetic guide to pronouncing the names. There are instructions on best way to uncork a bottle. This indispensable book also includes:

- The history of wine drinking and changing trends in India and across the world
- A comprehensive list of the major wine brands currently available in India, as well as the ones to look out for if you’re shopping abroad
- The basic rules of serving wine—temperatures, glassware and perfect pairings of Indian cuisine and wine—and storing it
- A reference list of wine- related terms and their definitions

2.7 Quality Standards

The European Union (EU) and now a majority of world’s wine-makers ensure that their wine conform to very strict quality standards and regulations. The quality standards define all aspects of the wine. It starts with the area where the grape is grown, the variety of grape, proportions of varieties in a blend of wine, cultivation and pruning methods, maximum yield per hectare, Vinification process and the alcohol content.

European Union directives ensure that this information is displayed on the label of the wine bottle. To compete in the international market, other countries outside the European Union also comply with these standards and labeling procedures.

The advantage of having this system is evident when the consumer buys wine. It is very clear to the consumer, what the quality of the wine is and if the price asked for is reasonable.

2.7.1 Reading a wine label

There are strict EU guidelines that govern what information is printed in a wine label. Any wine manufactured in the EU or entering the EU needs to follow these guidelines. (Lillicrap & Cousins, 2010)

Abbildung in dieser Leseprobe nicht enthalten

Source : http://www.snooth.com/articles/how-to-read-a-bordeaux-label/?viewall=1 Retrieved July 2013

The label gives a lot of useful information about the wine and it’s quality to the buyer. Typically, the language used on the label is that from it’s country of origin. However the terms are fairly easy to understand and a little reading of the different terminology is sufficient to read a label.

Labels will provide the name of the wine, country of manufacture, alcoholic strength, contents, variety of grape, vintage, and other information.

The Figure 2.3 illustrates a typical French wine label and the information printed on it. All EU countries follow the same system and this makes it easy for the consumer to identify the quality of wine.

i) Volume: This is the quantity of wine in Liters, CL, or ML
ii) Alcohol Content: The percentage of alcohol present in the wine
iii) Producer: Family name of the Viniters
iv) Vintage: Year of the Grape harvest
v) Estate: Name of the Estate. Chateau means fort in French and some wine estates are forts
vi) Winery Classification: The Cru (growth) Classification is from the Bordeaux Wine Official classification of 1855 listing the best wines of this region.
vii) Region: This shows the region or area that the grapes were harvested from.
viii) Bottling location: This shows where the wine was bottled. Mis en bouteille au Chateau or au domaine means that it was bottled on the chateau (castle) or estate itself. There are some wineries that get bulk wine from other sources and only do the
ix) Production Area and AOC determine the quality of wine. This is further illustrated in the Table 2.7 below

Table 2.7 Quality grading of wine

Abbildung in dieser Leseprobe nicht enthalten

Source: Food and Beverage Service (Eight Edition), 2010

With the above information on a label the quality of the wine is easily discerned. A consumer buying the wine from a store can easily verify if the price being paid for the wine is suitable for the quality of the wine being bought. It is evident that the higher quality wine marked AOC of DOCG will retail for a more expensive rate that a bottle that is Vin de table.

2.8 Wine marketing in India

The All India Wine Producers Association (AIWPA) made a presentation titled ”Indian Wine Industry current scenario & Proposed Corrective Measures”

This presentation outlines certain marketing barriers that wine manufacturers in India face.

2.8.1 Taxation

High inter state registration fees, duties and Taxes. Each state in India has different rules and regulations for the sale of wine and also has different tax structures.

The Constitution of India provides that the Indian Central Government is empowered to collect excise duties on a range of products. However, products defined as ‘alcoholic liquor for human consumption’ has been specifically excluded from such list and in principle, the Indian State Government have exclusive competence to levy excise duties on wines and spirits and determine their rates. It is therefore that each Indian State maintains a separate system for the taxation of wines.

There are twenty-eight State and seven Union Territories, some of which formulate their own policies for the taxation of wines and spirits, and others operate under policies determined by the Central government. A limited number of Indian States also maintain a ban on the sale of alcoholic drinks. States, which allow the sale of alcoholic drinks, wines and spirits, are generally subject to a number of different indirect taxes.

The structure and denomination of these taxes varies considerably across the States, as does the resulting overall level of taxation. Common denominations of taxes include excise duty, special duty, vend fee, import fee, transport fee, assessment fee, gallonage fee, litterage fee, development fee, octroi, sales tax and VAT.

An example of this is shown in Table 2.8 below.

Table 2.8 Tax on wine

Abbildung in dieser Leseprobe nicht enthalten

Source: Times of India TNN, 25 January 2013

There have been petitions made by the All India Wine Producers Association to the governments to introduce a uniform taxation rate for wine in India.

2.8.2 Promotional barriers

1. Promotion barriers affect the manufacturers, as there is a ban on advertising alcoholic products in India. The Prohibition Act does not allow the depiction of any alcoholic drink in the print or any other media.
2. Advertising alcoholic beverages is banned in India as per the Cable Television Network (Regulation) Amendment Bill, which came into effect on 8 September 2000.

This has made liquor companies adopt surrogate advertising to promote brand awareness. This method works for well-known or existing brands. This is ineffective as a marketing outlet for many wine manufacturers as their brands are new in the market.

Wine manufacturers have resorted to promotional events in restaurants or organized Wine-Fests to overcome this hurdle.

2.8.3 Quality standard

The quality standards practices followed in most of the foreign wine producing nations is detailed in Section 2.6 of this chapter.

Having strict guidelines to the label material and information displayed makes it easier for the wine consumer and buyer to discern the type and quality of wine being consumed.

The only rules for labeling in India are laid down by Excise and Tax departments. These rules specify only information like alcohol content, Maximum Retail pricing, and manufacturer details.

There are no defined Quality standards for the classification of grapes and the wine. It is difficult for a consumer to discern the quality of the grape or the wine from the label.

In a study conducted by Bradley Rickard, the economical implications of selling wine in grocery stores and supermarkets were studied. (Rickard, 2009)

A simulation model is developed here to assess the likely effects of introducing wine into grocery stores in New York State.

The purpose of the study was to quantify the economic implications of introducing wine into grocery stores for various stakeholders, and develop a framework to assess some of the transitional issues that would accompany such a policy change. New York State served as the focus, because of its population and local wine sector, and because these types of proposals were introduced in the State in 1984 and 2009.

Two key results emerged from all of the scenarios that examined the effects of introducing wine into grocery stores.

First, government revenue from additional tax would increase by $22 million per year in our baseline scenarios.

Second, the market share of out-of-state wines would grow and revenues for this group would increase between 30% and 40% in the baseline scenarios.

The study concluded that introducing wine into grocery stores has the potential to increase overall welfare for stakeholders in the wine sector. Introducing wine into grocery stores would increase the availability of wine to domestic consumers and may be a mechanism to foster the development of this burgeoning industry.

In his article titled “Finally-Wine in Delhi supermarkets” 14 June 2010 Subhash Arora gives details of the new government policy to allow wine to be sold in supermarkets.

New provisions in the recently announced two public notices officially allow the sale of Indian and imported wine in department stores and supermarkets in Delhi under license L-53A while the newly introduced license L-56 allows sale of IMFL and beer in the stores in the shopping malls

Foreign wines and beers are also now allowed for sale, but in order to do so an L-53F will have to be taken from the excise department. The annual fee for the L-53 license will be Rs.200, 000 ($4250)-it is chargeable for the remaining quarters in case of applying during the year. The L- 53F license costs 10% extra.²¹

2.9 Advantage over imported wines

Indian wine manufacturers do still have a pricing advantage over imported wines.

Table 2.9 Comparison of pricing

Abbildung in dieser Leseprobe nicht enthalten

Source: The impact of Wine, Grapes and Grape Products on American Economy 2007

As an illustration if the same manufacturer’s sale price is assumed for both an Indian and an Imported wine, Table 2.9 shows the distinct advantage the Indian manufacturer has in pricing.²²

The basic sale price to the first point retailer itself goes up by 152% in the case of the imported wine. This has a double-barreled effect. It does give an immediate pricing advantage to the Indian manufacturer, but it also creates the perception that wine is a luxury drink in the minds of people who are exposed to imported wine prices.

The advantage that the Indian wine manufacturer has is evident in the consumption patterns of Indian versus Imported wine.

In a study by JBC International, called the ‘Comprehensive study of the Indian Wine Market ’ (Gore, 2008) gives details of quantities of Imported and Indian wines consumed in a given price range.

Table 2.10 Wine sales comparison

Abbildung in dieser Leseprobe nicht enthalten

Source: Comprehensive Study of the Indian Wine Market (2008)

As is evident in Table 2.10, imported wines under Rs. 600 per bottle are not available in India as even a poor quality table wine cannot meet this pricing due to the import duties applicable.

2.10 Wine is a luxury

“An inessential, desirable item which is expensive or difficult to obtain” is the definition in the Oxford Dictionary of Luxury.

Simon Kemp, in his article “Perceiving Luxury and Necessity” in the Journal of Economic Psychology, Vol 19(5) Oct 1988 carried out a study where different goods were rated on a necessity-luxury scale. The Study showed that goods were regarded as more luxurious if it was the object of desire rather than if it relieved a state of discomfort.

The spending pattern of people falls into three categories. The first is Lifestyle purchases or necessities. This includes goods required for the day to day living in accordance with their lifestyle and income range. The second avenue of spending is on investments. Purchase of goods with a primary goal of increasing wealth and to ensure future security falls in this category. The final category of spending is Luxury goods. These are goods which are neither essential or have an intrinsic investment value. They are purely consumed to fulfill an immediate desire.

In his Book “The idea of Luxury: A conceptual and Historical Investigation “ Christopher Berry says that luxury inflames passion and desire encouraging their boundless satisfaction (ch.2).

He goes on to say that the paradigm of luxury is that goods may be regarded as socially non-necessary but may be “needed” by an individual because it is an object of desire (feeding a psychological necessity) or intense identification (like a cherished object).

A working paper from the Harvard Business School titled “The Devil wears Prada” studies the effect of exposure to luxury goods on decision-making. The test subjects in this study defined goods as non-luxury if they were “Everyday products that are necessities or fairly simple and functional looking” They described goods as being Luxury goods if they were “Glamorous, Glitzy, have designer labels and are expensive” or “goods at half the price would have the same functionality”

2.10.1 Is wine perceived as a luxury in India?

Vir Sanghvi wrote an article in the Hindustan Times (23 Sep, 2011) titled “Wine’s cheat sheet” He compares the prices of the same brand of wine being sold across different restaurants. It was found that on bottles of wine the price disparity across restaurants for the same wine could be upto 50%. A bottle of Cloudy Bay Sauvignon Blanc is Rs. 4,700 at the Taj Palace and the same wine costs Rs 9,000 at the Imperial. His point in the article is that hotels, specially the 5 stars, have the option of importing wine duty free. They can import a bottle of Champagne at Rs 1,800 to Rs. 2,000 but sell it anywhere between Rs.6000 to Rs 9000.

His reason to write this article was when he found that a bottle of Motoun Rothschild cost Rs. 28,900 at the Taj and the Oberoi charged Rs. 100,500 for the same bottle. His contention is that the hotels are in a market where they can charge as much as they desire to maximize their profits. However, he feels that the Indian consumer is waking up and with them having a greater knowledge about wine, this practice cannot continue.

Looking at the price lists of the wines in these restaurants can always create a perception that wine is a luxury product to be consumed by a minority of the populace.

2.11 Wine and health

Wine and health is an issue of considerable discussion and research. Wine has a long history of use as an early form of medication. It has been recommended as a safe alternative to drinking water, an antiseptic for treating wounds and a digestive aid, as well as a cure for a wide range of ailments from lethargy and diarrhea to easing the pain of childbirth. (Harding, 2005)

The ancient Greeks introduced a more systematized approach to medicine, wine still retained its prominent role. The Greek physician Hippocrates recommended wine as a part of a healthy diet and advocated its use as a disinfectant for wounds, as well as a medium to mix other drugs in for easier consumption by the patient.

He also prescribed wine as a cure for various ailments ranging from diarrhea and lethargy to pain during childbirth. (Robinson, 2006)

In November 1991, the U.S. news program 60 Minutes aired a broadcast on the so-called "French Paradox". The programme featured the research work of Bordeaux scientist Serge Renaud.

The broadcast dealt with the seemingly paradoxical relationship between the high fat/high dairy diets of French people and the low occurrence of cardiovascular disease among them.

The broadcast drew parallels to the American and British diets which also contained high levels of fat and dairy but which featured high incidences of heart disease.

One of the theories proposed by Renaud in the broadcast was that moderate consumption of red wine was a risk-reducing factor for the French and that wine could have more positive health benefits yet to be studied.

Following the 60 Minutes broadcast, sales of red wine in the United States jumped 44% over previous years.²³

Nearly all research into the positive medical benefits of wine consumptions make a distinction between moderate consumption, heavy and binge drinking. The amount that constitutes a moderate, healthy level of consumption will vary by individual according to age, gender, genetics, weight and body stature as well as the situation including, what food being consumed and are any other drugs currently in the individual's system.

Women, in general, tend to absorb alcohol quicker than men due to their lower body water content and difference in levels of stomach enzyme so their moderate levels of consumption tend to be lower than a male of equal age and weight.

Some doctors define "moderate consumption" as one (150 ml) glass of wine per day for women and two glasses per day for men. The view of consuming wine in moderation has a history almost as long as that of wine's role in medicine.

The Greek poet Eubulus believed that three bowls (kylix) were the ideal amount of wine to consume. The number of three bowls for moderation is a common theme throughout Greek writing. (Robinson, 2006)

In his circa 375 BC play Semele or Dionysus, Eubulus has Dionysus say:

“Three bowls do I mix for the temperate: one to health, which they empty first, the second to love and pleasure, the third to sleep. When this bowl is drunk up, wise guests go home.”²⁴

Although red wine contains many other chemicals, which may have health benefits, resveratrol has been studied the most

The production and concentration of resveratrol is not equal among all the varieties of wine grapes. Differences in clones, rootstock, Vitis species as well as climate conditions can affect the production of resveratrol.

Also, because resveratrol is part of the defence mechanism in grapevines against attack by fungi or grape disease, the degree of exposure to fungal infection and grape diseases also appear to play a role.

Although red wine and white vine varieties produce similar amounts of resveratrol, red wine contains more than white, since red wines are produced by maceration (soaking the grape skins in the mash).

Other winemaking techniques, such as the use of certain strains of yeast during fermentation or lactic acid bacteria during malolactic fermentation, can have an influence on the amount of resveratrol left in the resulting wines.

Similarly the use of certain fining agents during the clarification and stabilization of wine can strip the wine of some resveratrol molecules. (Halliday & Johnson, 2008)

In a study carried out at Harvard University, David Cameron demonstrates what researchers consider conclusive evidence that the red wine compound resveratrol directly activates a protein that promotes health and longevity in animal models.

Tests on mice demonstrate conclusive proof that resveratrol, a compound found in red wine, improves health and longevity The researchers have uncovered the molecular mechanism for this interaction, and show that a class of more potent drugs, currently in clinical trials, act in a similar fashion. Pharmaceutical compounds similar to resveratrol may potentially treat and prevent diseases related to aging in people.²⁵

Research conducted at the Yale School of Public Health in 2009, suggests that wine may have some protective benefits against some forms of cancer.

Women diagnosed with non-Hodgkin's lymphoma were questioned about their alcohol consumption patterns and followed for an 8 to 12-year period.

Compared to non-drinkers, women who had been drinking wine for at least 25 years prior were 33% less likely to die over the five-year period following diagnosis and 26% less likely to experience a relapse or develop a secondary cancer during that same five-year period.

Of all the women in the study, 75% of those who drank at least 12 glasses of wine over the course of their lifetime were alive after five years compared to 66% of the women who never drank any wine. Women who drank beer and alcohol spirits showed no differences.²⁶

Wine's positive effects on the metabolism of cholesterol has been suggested as a link to lower occurrences of gallstones among moderate drinkers since cholesterol is a major component of gallstones

2.12 Conclusion

The literature reviewed has shown the development of wine in India. The impact the wine industry has on the Indian economy has also been illustrated. Details of the major Indian wine manufacturers and the potential they have has been studied.

Information on Indian grapes and wine has been collated. Articles and studies on the perceptions that wine consumers have showed that there are still some myths and misconceptions surrounding wine.

The advantages and disadvantages faced by Indian wine manufacturers have been illustrated.

Studies have shown the positive health benefits of moderate wine consumption.

Based on all the literature reviewed and information collated, the wine consumption patterns and perceptions of the Pune wine consumers will be analysed. The methods and techniques used to analyse this is detailed in the following chapter.

3. Research Methodology

This chapter details the basics of research and identifies the tools and techniques used in this thesis. It gives the reasoning for the selection of these particular tools. Details of sampling techniques and statistical techniques for hypotheses testing are discussed.

The objectives and hypotheses of the thesis are also outlined in this chapter.

3.1 Introduction

The Indian wine market has grown in leaps and bounds over the last decade. The first wineries in India were established in the 1980s and for the next twenty years, till 2000 there were just six operating wineries. (Rathore, 2006) The decade following 2000 saw an increase in wineries jump to over 90.

Production subsequently expanded rapidly, peaking at an estimated 13.0 million liters (1.4 million cases) in 2010. Maharashtra accounts for about two-thirds of domestic wine production.

The Indian Wine industry Report 2004-2005 by DSM Marketing Pvt.Ltd. has offered a SWOT analysis of the Indian wine market. The Strengths and Opportunities available to the wine market are primarily focused on the large and increasing urban population of India. The increase in disposable income, changing lifestyle and acceptability of new trends are cited as an opportunity. India also has a good climate for growing wine grapes and the study forecasts a 30% annual growth rate for this market.

The study states the poor quality of wine and poor awareness of wine as a major weakness for the Indian wine market.

There have been incentives offered by the Government to promote the wine industry. Customs duties reduced by 8 – 12% with the elimination of the 4% “special additional duty” from February 2004, and while still a very high 140% - 250%, have been partly offset by hotels starting to import duty free wines – the scheme has now been extended to all hotels, restaurants and clubs earning a certain level of foreign exchange.

The forward-looking ‘Grape & Wine policy’ of the Maharashtra government has been further liberalised with the elimination of both excise duties as well as sales tax on wines produced within the state

The International Wine and Spirit Research (IWSR) along with Vinexpo released The India Wine Market Report, April 2012. The report estimates that 1.05 million cases of red wine were consumed in 2009 in India out of a total of 1.45 million cases.

An estimated 395,000 cases of white wine were consumed and around 13,000 cases (0.89%) for the Rosé. According to Robert Beynat, CEO of Vinexpo, The forecast for 2013, which takes into account last year’s recession as well, is 2.8 million cases, a growth of 97.15%.

This is still a very small figure compared to the 120 million cases of hard liquor and 105 million cases of Beer being sold.

Subhash Arora wrote an article in the magazine Go Now July 2008 edition, where he claims that many people in India still believe in myths and half-truths about wine. The more expensive the wine the better it is, Bordeaux wines are the best, wines are not meant to be had with vegetarian meals, are some examples of myths that he claims people still have.

The Indian market is a very young market. Indian wine manufacturers are still coming to terms with a small but growing consumer base. Numerous foreign studies have shown that the India has a good potential for wine marketing.

Given the low levels of wine consumption, in comparison to Beer and Hard Liquor, this research identifies the wine consumers’ perceptions and demographics.

3.2 Scope of Research

The scope of this research is categorised into three sections. Conceptual scope outlines the need for the research. Geographical scope justifies the geographical location chosen for the research. Finally the analytical scope outlines methods of analysis and determines that it is rigorous enough for the research.

3.2.1 Conceptual scope

The Indian Wine market has grown in leaps and bounds over the last decade. The first wineries in India were established in the 1980s and for the next twenty years, till 2000 there were just six operating wineries. (Rathore, 2006)

In the Gain report, Wine Market Update 2012 (Sood, 2012), the development of this Industry is outlined. The decade following 2000 saw an increase in wineries jump to over 90 Anand Dikshit, (Unknown, 2012) remarks that the wine market in the country has grown consistently at 15% to 18% over the past few years and at present is close to 17 million liters with a value of Rs. 1,400 Crore (approximately US$280 million). Given the slowdown being faced in the market, he believes that the market might grow at a rate of 10% to 12% in the coming years.

This growth rate of the Indian wine industry is expected to generate an annual revenue of over Rs.10,000 Crores by the year 2020.

Despite this, there are hurdles facing the wine manufacturer in India. Disparate taxation on the State level makes pricing of wine a problem. Taxes can vary from 13% to 150% for Wine across India.

Wine advertising is banned by the Cable Television Network (Regulation) Amendment Bill, which came into effect on 8 September 2000. This leaves the wine manufacturers with only surrogate advertisement.

There are no defined Quality standards for the classification of grapes and the wine. It is difficult for a consumer to discern the quality of the grape or the wine from the label.

Articles and studies on the perceptions that wine consumers have show that there are still some myths and misconceptions surrounding wine.

Studies have shown the positive health benefits of moderate wine consumption The annual consumption of Wine averages about 7 million liters of Indian and about 1.5 million liters of Imported wines. This translates to less than 1 million cases of Wine. (Nine bottles of wine are in one case). This is in stark contrast to about 120 million Cases of hard liquor like Whiskey, rum and vodka being consumed every year and over 105 million cases of Beer.

It is important to understand the reasons for this reduced level of wine consumption. Understanding the perceptions the consumers have about wine, be it the price factor or the lack of information about available wines, will give the wine manufacturer a starting block to strategize their marketing efforts.

World over, wine is typically accompanied by food. In many places a dinner can consist of three or four types of wine being consumed during a single meal, one wine for each course. The drinking patterns of wine consumers in India need to be studied to understand their psyche about wine.

Some of the issues that can give an insight to wine manufacturers on where to focus their marketing efforts are:

- Do consumers feel comfortable having wine in a family environment with meals?
- Are they are aware of the health benefits of moderate wine consumption?
- Does consumption of wine elicit the same social taboos as alcohol consumption?

Given that wine is a growing industry with good potential, a study of the consumer perceptions of Indian wine and patterns of consumption would be a starting point for wine manufacturers to increase their market and penetrate earlier unknown markets.

3.2.2 Geographical scope

It is only from the mid 70’s that wine was manufactured locally in India. A few distilleries in Goa and Andhra Pradesh produced Port wine. Until the year 2000 there were hardly six wineries. Since 2000 there are close to 73 producing wineries and another 30 additional companies that have registered to become producers.

There are a few major wineries that account for the bulk of domestic wine production. Typically, smaller wineries around that region produce for the larger ones, rather than market their own brand Maharashtra is also the largest wine producing state of India. This state accounts for over 90% of Domestic wine production. Further, out of the total 66 wineries in Maharashtra, 44 are in Nashik and Pune. They account for about 80% of the production in Maharashtra.

Compared to Nasik, Pune is a larger and more metropolitan city. Given the proximity of Pune to Nashik, most of the wine manufacturers in the region hold wine fests and events in Pune city.

Pune has also become a hub for the Information Technology (IT) industry. There is a large population of young and educated workforce with large disposable incomes. The awareness and consumption of wine in the Pune region is second only to Mumbai.

Given this, the population for this study was the wine consumers in Pune city (Pune Municipal Corporation Limits).

3.2.3 Analytical scope

Data collation and analysis was carried out using statistical software. The primary data collected was in a questionnaire form and the questions were close ended. This offered the researcher the ability to apply statistical techniques to analyse data and report findings.

The data collected was Categorical data. The variables in the questionnaire were of Nominal, Dichotomous and Ordinal. Given this data the tests that were carried out were Cross-Tabulation, Frequencies, Chi-Square tests, Binomial Test, Kruskal-Wallis Test and Mann-Whitney U test.

Rigorous testing of the data was carried out using the above mentioned test to evaluate and compare relationships between groups. Relationships between demographics and wine consumption patterns could be carried out. Validation of perceptions of wine consumers was also carried out.

The data offered the researcher a good scope for detailed statistical analysis and the ability to generate valuable findings and suggestions based on these findings.

3.3 Objectives

The objectives of the study are:

1. To analyse the demography of the wine consumers
2. To analyse the level of acceptance of wine in a family environment
3. To evaluate the wine consumers’ perception towards wine
4. To determine the impact of knowledge of wine on the consumption pattern

3.4 Hypotheses

Based on these objectives the following hypotheses were formulated.

H 1. There is a significant relationship between wine consumption and Age groups

H 2. There is a significant relationship between wine consumption and Income levels

H 3. There is a significant relationship between wine consumption and Education levels

H 4. Female drinkers prefer to consume wine rather than any other alcoholic beverages

H 5. Wine consumers perceive wine as a luxury drink

3.5 Sampling

3.5.1 Population of concern

The population of Pune city was used as the target population for this study. The research is “A study into wine consumption patterns of Indians with special reference to the Pune region”

Maharashtra is also the largest wine producing state of India. This state accounts for over 90% of Domestic wine production.

Figure 3.1 further shows that Nashik, Sangli and Pune account for over 90% of the Production in Maharashtra.

Abbildung in dieser Leseprobe nicht enthalten

Figure 3.1 Wineries in Maharashtra

Given the proximity of Pune to Nashik, most of the wine manufacturers in the region hold wine fests and events in Pune city.

The population for this study was the wine consumers in Pune city (Pune Municipal Corporation Limits).

3.5.2 Sampling method

A purposive sampling method was used for the research. This is one that is selected based on the knowledge of a population and the purpose of the study.

The main goal of purposive sampling is to focus on particular characteristics of a population that are of interest, which will best enable the researcher to answer the research questions. The sample being studied is not representative of the population, but for researchers pursuing qualitative or mixed methods research designs, this is not considered to be a weakness. Rather, it is a choice, the purpose of which varies depending on the type of purposing sampling technique that is used.

Homogeneous sampling is a purposive sampling technique that aims to achieve a homogeneous sample; that is, a sample whose respondents share similar characteristics or traits.

A homogeneous sample is often chosen when the research question that is being address is specific to the characteristics of the particular group of interest, which is subsequently examined in detail.

The subjects were selected based on the premise that they consume wine. Snapshot data collection was carried out at wine fests, restaurants serving wine and outlets that sell wine. This gave the researcher a high probability that the persons at these locations are wine consumers.

3.5.3 Sample size

According to the Census department and the tentative census figures for 2011²⁷, the Pune city Population is 31,15,431 comprising of 16,02,137 Males and 15,13,294 Females.

Table 3.1 Required sample size

Abbildung in dieser Leseprobe nicht enthalten

Source: Educational and psychological measurement 1970

Using the calculations provided by Krejcie & Morgan in their “Determining Sample Size for Research Activities”²⁸ (Table 3.1) the sample size for the population mentioned above shall be 384 at a Confidence Level of 95% with Margin of Error 5%.

3.5.4 Data collection

Data for the research was collected in two categories. The primary data was collected from wine consumers in Pune using the questionnaire method.

A questionnaire is a series of questions asked to individuals to obtain statistically useful information about a given topic²⁹

The questionnaire was framed and a pilot study was carried out to check whether the questionnaire was understood well by the respondents. The researcher, to ensure accurate and valid data used, member check, or respondent validation. An interview was conducted and questions were explained to the subjects to ensure reliable responses.

The pilot study helped the researcher to understand that the replies were relevant and could be interpreted in terms of the information that was required. It also helped the researcher to ensure that no questions were left unanswered by the respondents.

To aid in statistical analysis of the data collected, most of the questions were close ended. The respondents’ answers were limited to a fixed set of responses.

The secondary data consisted of books, periodicals, wine magazines and information and data from wineries.

3.5.5 Data validation

Data was collected at wine events, among known wine consumers, at restaurants that sell wine and at wine selling outlets in the city.

The responses of 411 persons were chosen for data analysis as they fulfilled all criteria required for the study.

The calculated required sample size for the population is 384 at a Confidence Level of 95% with Margin of Error 5%. (Table 3.1)

During the collation of data 269 respondents did not consume any form of alcohol. A further 235 respondents consumed alcohol but did not consume wine.

The data collected from these respondents was not used in the final analysis. Reference to this data was briefly made to identify reasons why they did not consume alcohol or wine.

3.6 Tools and techniques of analysis

Data collation and analysis was carried out using statistical software. The primary data collected was in a questionnaire form and the questions were close ended. This offered the researcher the ability to apply statistical techniques to analyse data and report findings.

The tools used for analysis were Microsoft Excel³⁰ and IBM SPSS Statistics³¹.

Microsoft Excel was used for initial collation of data and was also used to generate the graphs and tables.

IBM SPSS Statistics was used to analyse data using the appropriate statistical techniques.

3.7 Statistical tests

The data collected was Categorical data. The variables in the questionnaire were of Nominal, Dichotomous and Ordinal.

Nominal variables are variables that have two or more categories, but which do not have an intrinsic order. For example types of wine are categorized as red, white or sparkling.

Dichotomous variables are nominal variables, which have only two categories or levels. For example, if we were looking at gender, we would most probably categorize somebody as either "male" or "female". Another example can be questions that elicit a yes or no answer.

Ordinal variables are variables that have two or more categories just like nominal variables only the categories can also be ordered or ranked.

Given this data the tests that were carried out were Cross-Tabulation, Frequencies, Chi-Square tests, Binomial Test, Kruskal-Wallis Test and Mann-Whitney U test.

3.7.1 Chi-Square test for Association

The chi-square test for independence, also called Pearson's chi-square test or the chi-square test of association, is used to discover if there is a relationship between two categorical variables.

3.7.2 Binomial Tests

The binomial test is useful for determining if the proportion variables in one of two categories are different from a specified amount. The test assumes that the variables are independent and that the category studied is numeric.

For example, a binomial test can be used to see if there is a variation in the gender response to type of alcohol consumed. That is, if the proportion of females and males (independent groups) is similar in their choice of types of wine.

3.7.3 Mann-Whitney U test

The Mann-Whitney U test is used to compare differences between two independent groups when the dependent variable is either ordinal or continuous.

The Mann Whitney U test is a non-parametric test that is useful for determining if the mean of two groups is different from each other.

A typical use for the Mann-Whitney U test is to see if males and females (2 group independent variable) have a similar opinion about wine being a special drink for special occasions (dependent variable in a Likert scale)

3.7.4 Kruskal-Wallis test

The Kruskal-Wallis test is a nonparametric test, and an extension of the Mann-Whitney U test. It allows the comparison of more than two independent groups. It is used when the data to be analysed is ordinal in nature. Rather than using Annova (parametric), Kuskal-Wallis (non-parametric) is used.

An example of this test is analysing if the knowledge the consumer has about wine (expert, good, poor, no knowledge) has an effect on the frequency in which they consume wine.

3.8 Conclusion

A cross sectional study as a part of Descriptive research was adopted for the study. The data was collected at a single instance, as a snapshot and processed for analysis.

The statistical tests used for analysis were, Cross-Tabulation, Frequencies, Chi-Square tests, Binomial Test, Kruskal-Wallis Test and Mann-Whitney U test The analysis of the data and reporting of analysis follows in the next chapter.

4. Data Analysis and Hypothesis testing

This chapter deals with the analysis of the data collected.

On collecting the data, Microsoft Excel and IBM SPSS were used to collate and analyse the data. Non-parametric tests were used to evaluate the attitudes and perceptions of the sample population.

The statistical tests used for analysis were, Cross tabulation, Chi-Square test for Association, Kruskal-Wallis H Test and Mann Whitney U test.

The hypotheses are tested in this chapter. All results are illustrated using relevant tables and figures.

Analysis of the data collected from wine consumers in Pune revealed the preferences of the consumers. The analysis also showed the perceptions the wine consumers have about wine.

The source for all the following data analysis is from the Primary data (Questionnaire – Appendix A) unless mentioned otherwise

4.1 Data Analysis.

4.1.1 The demography of the sample population.

Table 4.1 Gender distribution

Abbildung in dieser Leseprobe nicht enthalten

Pune city population has an almost equal distribution of males and females.³² The city has a bourgeoning population if educated working professionals comprising of both genders.

As wine has lower alcohol content, both genders equally prefer it and an equal mix of both genders has been taken for the study.

Various wines complement and enhance the meal and wine is an ideal drink to be had along with a meal.

Of the 411 people from whom data was collected, 48% were male and 52% female. (Figure 4.1). Although it may be perceived that wine is a ladies drink, it is seen than wine is equally preferred by both the genders.

4.1.2 Age group breakup of the sampled population

Table 4.2 Age group break-up

Abbildung in dieser Leseprobe nicht enthalten

The wine consumers are fairly evenly distributed over all the age groups. (Table 4.2) Pune has a large working population. It is one of the most important Information Technology (I.T.) hubs in India and has a very high per capita income.

The younger age groups have more disposable income and tend to frequent bars and wine fest more often. The older age groups, retired, prefer not to go out so often.

Wine consumers are marginally more in the 25-35 age group followed by the 35-45 age group as seen in Figure 4.2.

The young professional in Pune is a frequent foreign traveller, especially those working in the I.T. sector. They have a wide exposure to different cultures and are also akin to go out more frequently to lounges, restaurants and wine fests. The are ready to experiment with alcoholic beverages and various types of wine.

The 55 and above age group are the more sophisticated wine consumer. They have already developed a preference for a particular style and taste of wine.

Respondents were all above the age of 25 and that is the legal drinking age in the state of Maharashtra³³.

4.1.3 Educational level breakup of the sampled population

Table 4.3 Educational level break-up

Abbildung in dieser Leseprobe nicht enthalten

It is observed that the majority of the wine consumers are Postgraduates and above. (Table 4.3).

Abbildung in dieser Leseprobe nicht enthalten

Figure 4.3 Educational level break-up

An increased educational level increases the opportunity for better jobs. Better jobs offer the opportunity to travel and be exposed to other cultures. This increases their knowledge, awareness and understanding of wine, which in turn translates to more frequent wine consumption.

4.1.4 Marital status breakup of the sampled population

Table 4.4 Marital status

Abbildung in dieser Leseprobe nicht enthalten

The minimum age for alcohol consumption in Pune is 25 years. Visiting Wine fests, bars and lounges is restricted to a minimum age of 25. It is common in India for people at this age to be married and hence the data showed that a majority of the wine consumers were married. (Figure 4.4).

4.1.5 Income range break up of the sampled population

The range used for tabulating income is based on the Income tax slabs and rates for Assessment year 2012-13 (Financial Year 2011-12)³⁴

Table 4.5 Income range break-up

Abbildung in dieser Leseprobe nicht enthalten

Wine, both Indian and imported, is priced higher than other fermented beverages like beer, cider and also different types of hard liquor. The price of wine varies with grading, quality, style, year of manufacture and country they originate from.

Generally, wine is bought by the bottle and not by glass or peg like other liquor. Once opened, the bottle of wine needs to be consumed as soon as possible or the wine goes bad. Therefore, buying and consuming wine is relatively expensive.

The disposable income with the higher bracket income group is more. They are more akin to have increased spending on entertainment and dining in speciality restaurants bars and lounges.

It is expected that wine consumption be predominantly in the higher income bracket persons and this is evident in the data collected and observed in Figure 4.5.

4.1.6 Reasons for not consuming alcohol

Table 4.6 Reasons for not consuming alcohol

Abbildung in dieser Leseprobe nicht enthalten

Figure 4.6 Reasons for not consuming alcohol

In the Indian culture consuming alcohol, both at home and outside is still not socially acceptable by a large number of people. Religious restrictions, beliefs and cultural orientation also condone alcohol consumption.

Social culture of India is reflected in this response. The main reason why Indians do not consume alcohol of any kind is religious (Figure 4.6). Alcohol consumption is still considered a vice by a large number of people in society.

Some of the respondents tried different types of alcohol and did not like the taste and prefer not drinking. Generally alcohol has a distinct taste that requires getting used to. Regular drinkers are accustomed to the taste. People who try alcoholic drinks for that first time may find the taste not to their liking and hence have given this as a reason for not consuming alcohol.

There were a few who did not consume alcohol for medical reasons.

4.1.7 The places where alcohol is most frequently consumed.

Table 4.7 Locations where alcohol is most consumed

Abbildung in dieser Leseprobe nicht enthalten

The Indian socio psyche still prefers consuming alcohol outside the family environment.

A large majority prefer consuming alcohol at social events such as functions, parties, cocktails and conferences. Alcohol is also consumed by a large number of people at restaurants and bars.

This is evident in the data as illustrated in Figure 4.7.

4.1.8 The frequency of wine consumption by the sample population

Table 4.8 Frequency of wine consumption

Abbildung in dieser Leseprobe nicht enthalten

Figure 4. 8 Frequency of wine consumption

Consumers who mentioned, seldom, consume wine when offered and around two or three times a year. They do not regularly buy and consume wine. A majority of the wine consumers drink wine once a month. (Figure 4.8)

Generally, wine is bought by the bottle and not by glass or peg like other liquor. Once opened, the bottle of wine needs to be consumed as soon as possible or the wine goes bad.

This is one reason why bottles of wine are not opened too frequently and general consumption is once a month. Additionally, there are consumers who consider wine a drink for special occasions and celebrations.

There are however a small percentage of consumers who do consume wine more frequently, on a weekly basis .

4.1.9 Reasons for not consuming wine

Of the total data collected, 269 respondents did not consume any form of alcohol (Table 4.6). An additional 235 respondents consumed alcohol but did not consume wine. Further study was not carried out for these people, as the preferences and attitudes of wine consumers is studied and respondents not consuming wine would not have any input for this. The reasons why the respondents did not prefer wine but only consumed other alcoholic beverages is explored.

Table 4.9 Reasons for not consuming wine

Abbildung in dieser Leseprobe nicht enthalten

Figure 4.9 Reasons for not consuming wine

Abbildung in dieser Leseprobe nicht enthalten

The major reason for non-consumption of wine was found to be the price of wine. The participants would have consumed wine if the price was lower.

Wine, both Indian and imported, are expensive compared to hard liquor. Wine is sold in retail outlets, shops, restaurants and fine dining lounges usually as a full bottle and is therefore relatively expensive.

Wines are of different styles, such as still, sparkling and fortified. Each have different taste, flavour and palette and it is found that some consumers do not like the taste of wine.

Some respondents did not consume wine as they were unsure of what kind of wine to order. They had little or no knowledge or awareness about wines.

4.1.10 Locations and frequency of wine consumption

Table 4.10 Locations where wine is most consumed

Abbildung in dieser Leseprobe nicht enthalten

Figure 4.10 Locations where wine is most consumed

Abbildung in dieser Leseprobe nicht enthalten

Wine, due to our socio-cultural reasons is mainly consumed outside home. A large majority prefers consuming wine at social events such as functions, parties and cocktails where it is offered.

In restaurants wine is consumed as a compliment to various cuisines and styles of food and enhances meal experience.

Some consumers prefer not to have wine in restaurants and pubs, as it is an expensive drink.

4.1.11 Preferred choice of wine

Table 4.11 Preferred wine

Abbildung in dieser Leseprobe nicht enthalten

Figure 4. 11 Preferred wine

Wine consumers show a preference to Indian wines over imported wines. Indian wine manufacturers have a pricing advantage over imported wine.

The import duty on wines makes the base price of the imported wine 152%³⁵ more expensive at the first point of sale itself. Restaurants and bars additionally add their mark up and tend to add a larger mark up than on Indian wine, as the wine is imported.

Indian food is typically full of spice and a full-bodied wine is a preferred pairing with Indian cuisine. The Indian red wines are manufactured to match Indian cuisine and have an edge over imported reds.

Moreover Indian wines, today, are available at all wine shops and liquor outlets and the variety and range is much more than the imported wine selection that a retail outlet may keep. Very few retail outlets stock a large variety, both in price range and taste, of imported wines. It is mainly restaurants and 5-Star hotels that have a collection of imported wines.

These reasons of lower price, taste matching with Indian cuisine and ease of availability makes an Indian wine to be generally preferred over an imported wine.

Table 4.12 Preferred type of wine

Abbildung in dieser Leseprobe nicht enthalten

Pune wine consumers have a palette for red wine. Over 70% of the consumers prefer drinking red wine. (Table 4.12)

Typically, wine is paired with the food consumed during a meal. The type of food dictates the choice of wine. The flavour of the food enhances the flavour of the wine.

Indian cuisine is flavorful, rich and spicy. Spicy food is best complimented by a full-bodied wine having distinct aromas and palette. The ideal wine for the Indian palette is red wine and this is reflected in the preferred choice of wine (Figure 4.12)

White wine compliments white meat like chicken and vegetables, which are cooked without a lot of spice and curry. Typically cold white meats compliment chilled white wine. White wine is also a preferred drink the afternoons. Indians are not still afternoon, daytime drinkers. Thus the preference for white wine is lower compared to the reds.

Champagne and sparkling wine is still considered a celebratory drink by the consumers. The consumption of this is restricted to celebrations and certain occasions. It is not generally a preferred drink by the consumer.

Other wines, like port and aromatic wines are traditionally aperitifs or digestives. The drinking culture in India is still not meal related. In European countries a single meal can warrant two of three different wines consumed during the meal and an aperitif before and a digestive after. This is not the typical practice in India and therefore these wines are seldom consumed.

4.1.12 Importance of wine attributes when purchasing

Table 4.13 Purchase concerns

Abbildung in dieser Leseprobe nicht enthalten

Wine consumers have fairly good knowledge about Indian wine brands. Brand and associated taste are important considerations when purchasing wine.

People generally want the best brand with the best taste at the lowest price. It is a given that when consuming wine taste is an important criteria. From the data observed in Table 4.13 the brand of wine is the most important consideration followed by price.

Consumers are aware of wine brands and consider it a very important attribute during purchase.

Though Indian wines have a price advantage over imported wines, price is still an important factor when buying wine. A very few wine consumers do not consider price and brand of wine as important factors when they purchase wine. (Figure 4.13)

The data analysed showed that knowledge about brands, both imported and Indian was fairly good in the consumers. In addition to this, the consumers were aware of the pricing structure of wines and price played a crucial role in the purchasing of wine.

A bottle of wine, once opened, needs to be consumed immediately as it is a fermented beverage. Additionally, a bottle of wine generally holds about four to five glasses of wine per bottle.

This would mean that during a meal with say four people, it is necessary to have at least two or even three bottles of wine opened. This is relatively more expensive than other alcoholic drinks.

Although Indian wines have an advantage in pricing over imported, they are still subject to a non-uniform Indian taxation level.

Over the last few years, an increase in events like Wine-Fests has offered direct interaction between consumers and wine manufacturers. Wine consumers have a fairly good knowledge about wines available and have their preferences about taste and grape types ascertained.

These factors then play an important role when wine is purchased. However there are a few connoisseurs who feel that price is not relevant if they get the wine of their choice.

4.1.13 Knowledge the wine consumer has about wine when ordering

Table 4.14 Consumers’ knowledge

Abbildung in dieser Leseprobe nicht enthalten

In any kind of purchase there is generally a decider, an influencer and the buyer. A majority of the wine consumers fell in the decider category, where the circumstance or their general preference decided to have wine.

The influencer was typically the trained restaurant staff who suggested the kind of wine to order, or a member of the group who had Good if not expert knowledge about the wine to be consumed.

A large number of the respondents were contacted at wine restaurants and wine fests. With the increasing number of events where people are exposed to wine, the knowledge about wine also increases.

A majority of the wine consumers do have a good knowledge, if not expert, on what kinds of wine to order.

A large number of consumers (Table 4.14) prefer others to order for them. In many restaurants there are sommeliers (wine experts) or at least trained staff that can recommend a suitable wine to compliment the food ordered. Consumers with little or no knowledge about wine prefer to accept these recommendations and order wine accordingly.

With increased exposure and consumption of different wines the knowledge of the consumer increases and preferences are instilled in the consumer.

It was found that there did exist a few consumers, who with their exposure and interest in wine had expert knowledge on the various characteristics of wine and were extremely comfortable in ordering the proper wine.

4.1.14 Wine consumers’ knowledge on specific attributes of wine

Table 4.15 Consumers' knowledge on attributes

Abbildung in dieser Leseprobe nicht enthalten

Figure 4.15 Consumers' knowledge on attributes

Abbildung in dieser Leseprobe nicht enthalten

The study of wine is an exhaustive subject as there are numerous grades, varieties, styles of grapes, attributes of colour, taste, sight, aroma, and bouquet.

It is evident in the data shown in Table 4.15 that consumers had basic, if not expert knowledge about brands of wine available. With a little exposure to wine fests and retails outlets, wine brands available is easily discerned.

The next attribute that consumers had good knowledge on was the grading of wines. This is also fairly easy to discern, especially in Imported wines, where the quality is often marked on the label itself. It requires a little knowledge about wine label reading to discern quality.

The lowest score was for knowledge on grapes. This kind of knowledge requires a fair amount of study into wine and a large exposure to different wines to discern between grape varietals.

Though a large number of respondents claimed to have a good knowledge about wine, their specialty knowledge on specific attributes of wine such as grape variety, grading and brands is still lacking. Over 50% of the consumers have little if no knowledge about these attributes.

Few consumers were found to have expert knowledge on wine. It was seen that these consumers were typically well travelled and took a personal interest in the wine and its nuances. They had a lot of interactions with Indian wine manufacturers and had visited the wineries on wine tours.

4.1.15 Wine consumers’ perceptions on general conceptions of wine.

Table 4.16 Consumer perceptions

Abbildung in dieser Leseprobe nicht enthalten

Figure 4.16 Consumer perceptions

Abbildung in dieser Leseprobe nicht enthalten

Figure 4.16 shows the perceptions that Pune wine consumers have about wine.

I – Wine is a special drink for special occasions.

Wine is gaining acceptance as a drink complimenting food. A majority of the consumers are neutral or disagree with this statement that wine is only for special occasions.

II – Wine is a luxury commodity

The majority of consumers disagree with the statement. Though wine is relatively expensive when compared to other liquors, most wine consumers do still not consider it a Luxury item. Some may not consume it as frequently as other liquors, but it still rates as a regular drink and is not termed a Luxury item.

III – Imported wines are a better quality than Indian wines

A large number of consumers agree with this statement. Unlike Indian wines, imported wines have a grading classification and quality control. By reading the label of an imported wine the consumer can immediately identify the quality and know what to expect in terms of taste. With Indian wines, it is often a trial and error as far as selection of wines is concerned. Many consumers go on word of mouth suggestions and a few willingly opt for trying and testing to determine what wine to consume.

There are however a fair proportion of consumers who disagree with this as they have knowledge about Indian wines and are aware that not all imported wines are better.

IV – The more expensive the wine the better the wine

There are a large number of consumers that disagree with this, however, there were an equal number who also agreed with this.

V - The older the wine the tastier it is

The responses were fairly equal between agreement and disagreement.

The general perception is that wine can age and gets tastier. There are a lot of wines, available in the market, that are even 30 to 40 years old.

The oldest drinkable wine available today is the Rüdesheimer Apostelwein bottled in 1727. These kind wines are few and rare. Most wines available, especially Indian wines are to be consumed immediately.

VI – Unless you know about wine, you should not order it

The responses were fairly equal between agreement and disagreement.

4.1.16 Consumption of wine varies with the knowledge the consumer has about wine.

Table 4.17 Kruskal-Wallis test (Ranks)

Abbildung in dieser Leseprobe nicht enthalten

Table 4.18 Kruskal-Wallis test statistics a,b

Abbildung in dieser Leseprobe nicht enthalten

There is a significant relationship between Knowledge about Wine and wine consumption H(2)=152.129 p=0.000 (Table 4.18)

This indicates that the consumer who has greater knowledge of wine attributes tends to consume wine more frequently. The mean ranks in Table 4.17 indicate that for each of the attributes of Grapes, Grading and Brands, the more the knowledge the consumer had the more frequent, daily and weekly, was their consumption.

As the knowledge about the Grape types, Grading and Brands of the wine consumer increases so does the consumption of wine also significantly increases, as is evident in the mean ranks table (Table 4.17).

Wine grape varietals like red, white and black impart a distinct flavour to the wine. The sight, colour, taste and bouquet vary depending on the wine varietal. Consumers, who have a good knowledge about this, are more confident in ordering wine and consume wine more regularly. A majority of them consume wine at least on a monthly basis and some consume it on a weekly, even daily basis.

The grading information on a wine label indicates to the buyer the quality of wine. The certification allows the buyer to easily discern if the wine is of top quality or if it’s a table wine. Reading and understanding the wine label also assures the buyer that the right price is being paid for the wine.

Again, it is seen that consumers with knowledge about wine grading, tend to consume wine more frequently. (Table 4.17)

The brand of wine plays an important role in wine. Imported wines, especially from the old world wine countries like France, Italy and Spain are distinguished by the House they are bottled in. In the case of French wine the house is normally a Chateau. Indian wines are also developing a brand image among local consumers. The main brands like Sula, Grover, Nine Hills are popular brands and easily recognised by consumers.

Having knowledge about the brand and what kind of wines they offer also increases the ordering confidence and frequency of consumption.

4.1.17 Age wise consumption of wine at home and social events.

Table 4.19 Age groups consuming wine at home

Abbildung in dieser Leseprobe nicht enthalten

The younger the consumer the less comfortable they are consuming wine at home or in a family environment. A majority of the consumers in the age group of 25-35 never or rarely consume wine at home. The percentage of consumers, comfortable consuming wine at home goes up as the age group increases. At the age group of 55 and above, a majority often if not always consume wine at home.

Table 4.20 Age groups consuming wine in social events

Abbildung in dieser Leseprobe nicht enthalten

The younger generation aged 25-35 is more comfortable consuming wine at social occasion, when it is offered. A majority of them often if not always consume wine in social occasions and never or rarely consume wine at home. (Table 4.19)

This age group of working professionals have a wider exposure and frequent social events like Wine-Fests and conferences and cocktail dinners where wine is generally being served.

As the age group increases, the consumer frequent these events less, and at this age they are fairly comfortable consuming wine in a family environment and at home.

4.2 Hypothesis testing

4.2.1 Hypotheses of the study

H 1. There is a significant relationship between wine consumption and Age groups

H 2. There is a significant relationship between wine consumption and Income levels

H 3. There is a significant relationship between wine consumption and Education levels

H 4. Female drinkers prefer to consume wine rather than any other alcoholic beverages

H 5. Wine consumers perceive wine as a luxury drink

The source for all the data analysed in the following section of Hypotheses testing is from the primary data that was collated.

The primary data was analysed using Microsoft Excel30 and IBM SPSS31.

Non-parametric tests were used to evaluate the attitudes and perceptions of the sample population.

The statistical tests used for analysis were, Cross tabulation, Chi-Square test for Association, Kruskal-Wallis H Test and Mann Whitney U test.

i) Hypothesis 1. There is a significant relationship between wine consumption and age groups

To test if there is a relationship between the age of the consumer and the frequency of wine consumption, Chi-Square test was used.

Table 4.21 Age Range vs Frequency of Wine Cross tabulation

Abbildung in dieser Leseprobe nicht enthalten

Table 4.22 Chi Square Test (Hyp. 1)

Abbildung in dieser Leseprobe nicht enthalten

Table 4.23 Symmetric Measures (Hyp. 1)

Abbildung in dieser Leseprobe nicht enthalten

The Chi-Square value (Table 4.22) is 48.239 with Degree of Freedom of 9 and p=0.000 (<0.005) showing a statistically significant relationship between wine consumption and age groups.

Phi and Cramer’s V (Table 4.23) are both test of the strength of relationship and it is observed that the strength of relationship between the variables is significant.

Since the calculated p value is less than 0.05 the research Hypothesis is accepted. There is a strong relationship between Age groups and wine consumption.

ii) Hypothesis 2. There is a significant relationship between wine consumption and Income levels

To test if income levels of the consumer have a relationship to the frequency of wine consumption, Chi-Square test was used

Abbildung in dieser Leseprobe nicht enthalten

Table 4.24 Income Range vs Frequency of Wine Cross tabulation

Abbildung in dieser Leseprobe nicht enthalten

Table 4.25 Chi Square Test (Hyp. 2)

Abbildung in dieser Leseprobe nicht enthalten

Table 4.26 Symmetric measures (Hyp. 2)

The Chi-Square value (Table 4.2.3) is 179.744 with Degree of Freedom of 12 and p=0.000 (<0.005).

Phi and Cramer’s V (Table 4.2.4) are both test of the strength of association and it is observed that the strength of association between the variables is significant.

Since the calculated p value is less than 0.05 the research Hypothesis is accepted. There is a strong relationship between income levels and wine consumption.

iii) Hypothesis 3. There is a significant relationship between wine consumption and Education levels

To test if the level of education of the consumer has a relationship to the frequency of wine consumption, Chi-Square test was used

Table 4.27 Education Level vs Frequency of Wine Cross tabulation

Abbildung in dieser Leseprobe nicht enthalten

Table 4.28 Chi-Square tests (Hyp. 3)

Abbildung in dieser Leseprobe nicht enthalten

Table 4.29 Symmetric Measures (Hyp.3)

Abbildung in dieser Leseprobe nicht enthalten

The Chi-Square (Table 4.28) value is 68.098 with Degree of Freedom of 9 and p=0.000 . Phi and Cramer’s V (Table 4.29) are both test of the strength of association and it is observed that the strength of association between the variables is significant.

Since the calculated p value is less than 0.05 the research Hypothesis is accepted. There is a strong relationship between Education Levels and wine consumption.

iv) Hypothesis 4. Female drinkers prefer to consume wine rather than any other alcoholic beverages

Table 4.30 Chi-Square Tests (Hyp. 4)

Abbildung in dieser Leseprobe nicht enthalten

Table 4.31 Symmetric Measures (Hyp. 4)

Abbildung in dieser Leseprobe nicht enthalten

Since the calculated p value (Table 4.30) is less than 0.05 and the Contingency coefficient (Table 4.31) is closer to 1, there exists a strong relationship between the female alcohol consumers and wine consumers.

Table 4.32 Cross tabulation female drinkers

Abbildung in dieser Leseprobe nicht enthalten

The cross tabulation of female alcohol Consumers versus female wine Consumers (Table 4.32) indicates that females who consume alcohol, consume wine as their preferred choice of drink.

A majority of the monthly and weekly consumers of alcohol also consume wine on at a similar frequency.

The hypothesis is accepted that female drinkers prefer to consume wine rather than any other alcoholic beverages.

v) Hypothesis 5. Wine consumers perceive wine as a luxury drink

Table 4.33 Mann-Whitney U test (Hyp. 5)

Abbildung in dieser Leseprobe nicht enthalten

The Mann-Whitney U test (Table 4.33) is used to compare differences between two independent groups when the dependent variable is either ordinal or continuous, but not normally distributed.

This test was used to determine if there was a difference in perception between gender groups. The Mann-Whitney U test indicates there is equal and similar opinion amongst the respondents towards wine being/not being luxury drink

Table 4.34 Descriptive Statistics

Abbildung in dieser Leseprobe nicht enthalten

Further, testing the means of the responses of wine being a luxury drink gave the results as illustrated in Table 4.3

Table 4.35 Testing of means (Hyp.5)

Abbildung in dieser Leseprobe nicht enthalten

If we bifurcate the mean with respect to genders, the males have mean of 3.02 which is neutral, that is not luxury, while female responses have mean of 2.96 which is inclined towards disagreeing with the statement that wine is luxury drink.

Table 4.36 Binomial Test (Hyp. 5)

Abbildung in dieser Leseprobe nicht enthalten

The binomial test is useful for determining if the proportion of people in one of two categories is different from a specified amount. In the Category selection, 3 is a neutral response. Less than or equal to 3 shows participants disagreeing with the statement and values of greater than 3 shows participants agreeing with the statement.

The binomial test obtained with cut off of 3.0 (since a neutral response is 3.0) shows clearly that 303 (Table 4.36) responses are less than or equal to 3 (neutral).

The research hypothesis is rejected. Wine consumers do not consider wine to be a luxury drink.

4.3 Conclusion

The objectives and the hypotheses of the research were analysed in this section using the primary data. The following chapter will report the findings of the research using both the primary and secondary data sources.

5. Conclusion

This chapter details the findings both from the primary data source and findings related to this thesis from the secondary data source, literature review. Based on the findings the conclusions have been presented.

5.1 Findings

5.1.1 General findings

The demographic of the wine consumers showed an equal distribution of the genders. An equal number of men and women consumed wine in the sample population.

As the legal drinking age is 25,a majority of the respondents were married. The ages were fairly evenly distributed between the age ranges of 25-35 year old , 35-45 year olds , 44-55 year olds , and 55 years and above.

The income level distribution of the wine consumers showed a majority were earning in the top bracket of more than Rupees 8 Lakhs per annum The distribution of the education levels of the wine consumers showed a majority were Post Graduates or more.

The major reasons cited for not consuming alcohol, was religious prohibition followed by alcohol consumption is a bad habit. However, respondents who did not consume wine cited the expense of the drink as a major factor. A fair number of respondents said that they were unsure about what wine to order and therefore never tried it before.

The Indian Grape processing Board is introducing a National Wine Standard to have a uniform grading of wine. This will help consumers determine the quality of wine by just reading the labels on the bottles.

New provisions by the government allow the sale of Indian and imported wine in department stores and supermarkets under license L-53A. In studies carried out in Canada and the United States, it has shown that the sales of wine have increased after introduction of wine in supermarket.

Studies have shown numerous health benefits accompanying moderate consumptions of wine, specifically red wine.

Studies have shown that the more education the consumer has about the various aspects of wine, the more frequently and confidently they consume and buy wine.

5.1.2 Specific findings

Correlation between demographics and frequency of wine consumption showed that the higher the income levels the more frequently wine was consumed.

Gender did not play a part in wine consumption. Both men and women equally consumed wine. Although the gender distribution among wine consumers was fairly equal, it was found that given a choice of wine or other alcoholic beverages, women preferred consuming wine.

The higher the level of education, the greater the frequency of wine consumption.

Wine was most frequently consumed outside the home environment and mostly with friends. A majority of the respondents consumed wine at social events and in bars and restaurants with friends. It was found however, that this majority mainly comprised on the younger age groups upto 45 years old. The older the consumer, the more comfortable they were, consuming wine at home and with family in restaurants. Wine consumption is still not a comfortable practice in a family environment for a majority of the consumers.

A majority of the wine consumers consume wine on a monthly basis.

Pune wine consumers have a palette for Red Wine. A very large majority of the consumers prefer having red wine to white. Special occasions and celebrations call for Sparkling wine and this is a preferred choice by very few of the consumers. Unlike European countries where sparkling wine is consumed as a regular drink, Pune consumers prefer it mostly for special occasions. Other wines, like Rose and fortified wines (Port) make up for a very small part of the preferred consumption.

Pune wine consumers prefer to consume Indian wine on a regular basis. Most prefer Indian wine at restaurants and Bars. The price of imported wine at restaurants and Bars was a main deterrent for most consumers. Due to the import duties and allied costs of import, a standard imported table wine is more expensive than a premium Indian wine.

This is further reflected in the purchase concerns of the wine consumer. A majority of the wine consumers consider price of the wine to be an important factor when purchasing wine. Most wine consumers were aware of Indian brands and gave importance to the brand they were drinking.

A large number of the wine consumers were found to be well informed about wine and had good knowledge on what to order. An almost equal number of the consumers let others order for them. This was evident where respondents were in a group and generally one or two within the group had good knowledge and ordered for the rest. Though they had basic knowledge, they were more comfortable in others ordering for them.

When the respondents were asked about specific characteristics of wine and their knowledge about them, the responses were similar. The respondents had good knowledge about types of grapes, vintages, grading and the various Indian brands. The more the knowledge the wine consumer had about these aspects, the more frequently they consumed wine. It was found that this group of people ordered wine more frequently.

Pune wine consumers do not harbour the typical myths and misconceptions about wine. The respondents were found to be fairly knowledgeable about wine.

Wine is not considered a drink for special occasions only and neither considered a luxury drink. Both the male and the female consumers equally held this perception.

They also understood that the more expensive the wine or the older the wine, does not necessarily mean that it is better.

It was found that the consumers were comfortable asking about the wine and deciding on what wine to order based on recommendations.

5.2 Conclusion

The data analysis and the findings have identified the demography of the Pune wine consumer.

The demographic characteristics of a regular (monthly or weekly consumer of wine) wine consumer is a person between 35-55 years old, earning 8.00 Lacs or more per annum with an educational level of Graduate or more.

The Gender of the wine consumer is not relevant as an equal proportion of women and men consume wine. However, in the female population, wine is the preferred drink in comparison to other alcoholic beverages.

Wine is generally consumed at social events and bars and restaurants. The consumption of wine at home or in family environments is low. However, wine consumers in the older age brackets find wine an acceptable drink to have at home, Pune wine consumers have a palette for red wine. A majority of the consumers prefer ordering and buying Indian wines. The price of imported wine at restaurants and Bars was a main deterrent for most consumers. The price of a bottle of wine is purchase concern for the consumer. Due to the import duties and allied costs of import, a standard imported table wine is more expensive than a premium Indian wine.

The frequency of wine consumption is more in the people who have a good understanding about grape varieties, grading of wine and brand awareness.

Most wine consumers do not consider wine to be a luxury commodity.

The future for Indian wine is a positive one. The wine consumption estimates for the year 2020 is about 7.2 Crore Litres and the industry is expected to generate revenue of over Rs.10,000 Crores.

However, the Indian wine market does face certain concerns. It is a very young market. The manufacturers still face promotional barriers, as the direct marketing of alcohol is banned in India. This leads to a lack of product awareness in the market.

Though there are a large number of incentives offered at a state level, especially Maharashtra, overall the different and uneven state policies affect pricing and sale of wine.

Maharashtra has been leading in the promotion of the grape industry and wine industry. The Maharashtra Grape-Processing Industrial Policy of 2001 offers preferential treatment to grape processing and the wine industry. Tax and Excise benefits, simplified licensing procedures and preferential financial options are some of the benefits available for wine businesses.

It is also establishing Wine Institutes to train farmers and the Maharashtra Grape Board to promote export. Wine parks are to be set up in Nasik and Sangli.

The Indian Grape Processing Board has plans to introduce a National Wine Standard and a draft of this is already available. This will help in identifying and grading the quality of wine being sold.

The implications of this research and recommendations are explored in the following chapter.

6. Suggestions

Based on the findings through the primary data analyses and secondary data collation, this chapter deals with suggestions and recommendations to wine manufacturers in ways to promote wine and increase the sales of wine.

6.1 General suggestions

i. The demographical break up of the respondents’ shows that regular and frequent wine consumers are in the higher income bracket and in the higher age range. The focus group for a wine manufacturer for increasing the market base would be the middle-income group and the younger generation.
ii. Gender was not a factor in this, though females preferred wine to other alcoholic drinks when given a choice. The normal habit of consuming other alcoholic drinks by males is to consume it before the meal. Wine is typically not a drink that is consumed before a meal unlike hard liquor. Wine manufacturers can promote the consumption of wine as a drink accompanying food.
iii. Identifying the quality of wine and being satisfied that the price being paid for the wine is reasonable is a prime concern of the consumers. The wine manufacturers should expedite the introduction of a National Wine Standard and a uniform labeling practice, which will give the consumer full information about the product by just reading the label.
iv. Wine manufacturers, to promote wine and make it an acceptable drink in a family environment can, also highlight health benefits of moderate wine consumption.

6.2 Specific suggestions

i. The more the knowledge the consumer has about wine, the more comfortable they are ordering and consuming it. Though the average wine drinker has a fair amount of knowledge about grapes and brands, it is recommended that more effort be taken in educating the population about wine.
ii. The wine manufacturer, in collaboration with wine outlets like restaurants or wine bars can organize wine appreciation courses and tasting sessions to further educate the population on wine.
iii. Red wine is primarily consumed, but the Indian cuisine is better suited for White and Rose wines. Wine manufacturers can offer training courses to staff at the outlets to recommend wine with Indian cuisine.
iv. The price of wine is a major factor in other alcoholic beverages been chosen over it. An appeal can be made by the Indian Grape Processing Board to introduce a reduced uniform taxation structure for wine.
v. Wine manufacturers can also promote wine tourism and organize wine festivals focusing on the demographic group identified in this research. This will lead to greater knowledge in the population about wine, and as seen in the research will lead to greater consumption.
vi. A drive by the wine manufacturers to approach large supermarket chains to start stocking and selling wine will lead to an increase in wine sales.

6.3 Implementation barriers

One of the major barriers wine manufacturers face is direct promotion of alcoholic beverages. Any form of direct advertising of alcoholic products is banned in India and hence larger liquor manufacturers resort to surrogate advertising.

Wine manufacturers are relatively small scale compared to the hard liquor manufacturers in India and surrogate advertising is too expensive for them. Additionally, being young players in the market, identification with just the name of the company as wine manufacturers is still not possible by most.

Religious and social sentiments also play a large role in the policy forming of Governments. There are states in India that are dry states and prohibit any form of alcohol consumption. This can also affect policies of the supermarket chains to sell wine at their outlets. A recent move by the Reliance group to stop sale of non-vegetarian products through its stores is such an example.

Though the Grape board can make suggestions to incorporate a uniform taxation policy, the actual implementation can be hampered, as taxation on alcohol is still one of the highest forms of revenue for State Governments. Though it could be argued that lower prices can increase volume of sales and offset the cut in tax rates.

7. Limitations of the study and scope for further research

This chapter outlines the limitation faced by the researcher with respect to area, attitudes and span. This chapter also gives suggestions on the scope for further research.

7.1 Limitations

Limitations of the study fall under three categories of Area, Attitude and Span.

7.1.1 Area

The study has been restricted to the Pune City. This is a micro level study and it cannot be used to generalize finding on a countrywide level. Further studies and research can be conducted over a wider population to get a greater understanding of Indian wine consumers’ perceptions.

7.1.2 Attitudes

As the data collected is primarily self-reported, the data cannot be independently verified. Potential sources of bias can arise from a certain level of exaggeration and attribution of a more positive image than may be true. Patrons of wine fests or specialty restaurants, ordering wine may have a bias in their responses, to portray a more positive attribute.

7.1.3 Span

Most of the data available as secondary sources are on a very young Indian market.

Historical data is only available for the past 10 years and most of the published data about wine in India is estimates provided by foreign studies.

7.2 Scope for further study

The Indian wine market is still in its infancy.

As this research is a micro level study, a macro level study can be carried out to validate these findings on a national level. This will aid wine manufacturers in identifying the demography of wine consumers and their perceptions.

Using this research as a basis, further research could be carried out in the Nasik region. A similar consumption pattern study could be carried out for Nasik. The two sets of data could be compared to determine if there is a variation in consumption as a result of manufacturers of wine being local to the Nasik region.

A more in depth study can be carried out to identify specific attributes of wine that the consumer prefers. This can also include a study into preferred branding, packaging and finer aspects of preferences that the consumer has about wine.

A study can be carried out into surrogate marketing avenues open for the wine manufacturers, specially the smaller units who work on a limited marketing budget.

Bibliography

i) Referred Books

Abbildung in dieser Leseprobe nicht enthalten

ii) Referred Journals, Studies and Periodicals

Abbildung in dieser Leseprobe nicht enthalten

iii) Referred Websites

Abbildung in dieser Leseprobe nicht enthalten

Annexures

Appendix A Questionnaire

Abbildung in dieser Leseprobe nicht enthalten

Appendix B Extract of Maharashtra’s Grapes Processing Industry Policy,2001

MAHARASHTRA'S GRAPES PROCESSING INDUSTRY POLICY, 2001

Maharashtra is a leading state in production of Grapes in the whole country. In regards to agriculture land under grapes cultivation & grapes production, Nashik & Sangli districts are at forefront in the State. Apart from these, grapes are also grown in the districts of Ahmednagar, Pune, Satara, Sholapur & Osmanabad. Nowadays, grapes are produced in Latur district of Marathwada also. However, Nashik and Sangli districts are ahead in the production of grapes in a scientific manner. The progressive farmers in these districts have also entered in the grapes exports and grapes processing sector. But, major grapes are produced for eating purposes and limited quantity is utilised for the production of liquor, dryfruits like raisins, etc. However, as grapes are of perishable nature, many times when the production of grapes is much more and sufficient domestic market is not available for sale of grapes, farmers have to sustain heavy financial losses. Further, as process of grapes production basically requires major capital investment, if sale or exports of grapes is not possible in time, farmers do suffer a lot. In these circumstances it was under consideration of government to declare an independent policy to encourage the grapes growers to produce more beneficial alternative products from grapes, other than the dryfruits and table grapes.

It was also noticed by the government that in some foreign countries international exhibitions are organised and in such exhibitions, in addition to wine production, guidance is also provided for maintaining regular supplies of wine during the whole year. In similar manner, there was a thinking that if proper boost is given to wine production in the state, it would create more employment opportunities. It was also observed that if the farmers in the state cultivate peculiar types of grapes for wine and similar kind of processed products, they will get more income from domestic and export markets. The State Government has specifically provided in Maharashtra's Industrial Policy, 2001 that Wine Parks will be set up in Sangli and Nashik districts to encourage the Wine Industry in the state. In fact, Maharashtra Industrial Development Corporation has already initiated the action for setting up of Wine Parks in Sangli and Nashik districts. Accordingly, to give impetus to the grape processing and wine industry in the state, preparation of a separate policy was under active consideration of the State Government.

After due consideration of above facts, Government of Maharashtra has now declared 'Maharashtra Grapes Processing Industry Policy, 2001', as described hereafter:-

1. Declaration as a Preferential Area:

As the Winery industry does not fall in the preferential area of granting loans, the financial institution like NABARD does not grant loans in such industries. Therefore, to get the high price of the product for farmers and to create better employment in the state, NABARD may be requested to declare preferential area for Winery Industries, enabling to grant such requisite loans.

2. Declaration as a Small Scale Industry:

Within the limits of investments prescribed for the Small Scale Industry, wineries should be considered as a Small Scale Industry.

3. Concessions in Excise Duty:

For those wine industries whose production has been started before 19th September, 2001, the excise duty will be charged at the rate of 50 per cent of the production expenditure incurred by such units instead of present 100 per cent rate. For those wine industries whose production has been started or would be started on or after 19th September, 2001, the excise duty will be charged at the rate of 25 per cent of the production expenditure incurred by such units. Such concessions will be admissible for period of 5 years.

4. Concessions in Sales Tax:

It has been decided with the consent of all states in the country that the floor rate of Sales Tax on liquor will be at the rate of 20 per cent. However, the Wine Process is totally different from the Liquor Production Process and wine unit is considered as agriculture process unit by the Central Government. Therefore, to encourage the Grapes Processing Industry in the state, a request will be made to the Empowered Committee of Finance Ministers of all states constituted by the Government of India to reduce the floor rate of Sales Tax on wine.

5. Wine Sales License:

Wine will be permitted for sale by Beer Bars and also licenses will be given to Wine Bars to sell wine on the basis of Beer Bars.

6. Wine Sales License Fee:

An amount of Rs. 5000/- per year will be charged for License Fee for the sale of wine and this rate will not be changed for next 10 years.

7. Simplification in the system of License/Permission for Wine Production:

If Wine production is taken in Winery Park as declared by the State Government, Wine Product License will be given at district level at the time of allotment of Plot. In other places for Wine Production, by simplifying the system of License the Collector of the district level will be empowered with a binding condition to issue licenses within 30 days.

8. Establishment of Wine Institute:

To maintain the quality of Wine at the International Level and to make available trained man power, a separate Wine Institute will be established. For setting up of the Wine Institute, Government/ MIDC will allot the plot at the nominal rate as given to the other educational institute. Such Institute will look after the work of training, checking the quality of wine, research and information centre for the Wine Industry. These institutes will be established by forming separate trust firstly at Sangli and Nashik. For this purpose, by choosing appropriate alternative from the following alternatives, training institutes will be established:-

a) To help the existing trust for formation of training centre.
b) To establish training institute in joint venture with the existing trust. c) To establish training institute by creating a separate trust.

9. One Window System:

For Winery Industry, essential license, plot, electricity supply, telephone etc. infrastructure will be made available with One Window System.

10. Establishment of Grapes Board:

A Grape Processing Industry Board would be established for Wine and other Grape Processing Industry in Maharashtra. The Board will consist of representatives from the concerned industry, Grapes producing farmers, State Government, government laboratories, wine institute etc. The organisation and functions of similar kinds of Boards existing in other countries will be examined before establishment of Grape Board in Maharashtra on same standards. The jurisdiction of the said Grapes Board will be as under:-

a) To inspect and control the Quality of Grape Cultivation and Wine Production.
b) To give approval to Lables.
c) To inspect Quality and Standard Norms.
d) To draft various Schemes for Sale of Processed Grape Products on the Global Level.

11. Facilities of Food Processing Industries:

The facilities which are given to the food processing industry units, will be given to the Winery Product Units by giving them the status of Food Processing Units.

12. Wine Product Units - Permission for the Tourists:

In foreign countries, permission is given to watch the Wine Product Units. In similar manner, in Maharashtra also, permission will be given to the tourists to visit Wine Product Units for testing the wine. Also, licenses will be given to such Wine Product Units to sale wine on retail basis.

13. Taxation on Imported Wine:

a) Excise Duty: Excise Duty cannot be charged on the Imported Wine. It would be examined as how to charge tax equivalent to the percentage of excise duty on the Imported Wine by other ways.
b) Fees on Labels and Brand: No fee on Labels/Brands is charged on Imported Wine. However, fee is charged on the wine produced in the state and the country. This issue would be examined fees will be charged on labels and brands.

14. Grapes Processing Industry - Easiness in the control of Excise Duty Dept.:

To simplify the procedure in the collection of excise duty and for creating easiness in the control of Excise Dept., a committee would be constituted under the Chairmanship of Principal Secretary (Excise) as under:-

Abbildung in dieser Leseprobe nicht enthalten

Appendix C List of Wineries in Maharashtra

Abbildung in dieser Leseprobe nicht enthalten

Appendix D Pictures

[This appendix was removed by the editorial staff due to copyright reasons.]

Appendix E Papers published by researcher

Kalkar, P., & Venkatraman, D. (2013, October 12). The Pune wine consumers' myths and misconceptions. Emerging issues in corporate strategies, ISSN: 2347-4173

Kalkar, P., & Venkatraman, D. (2014, January). A Study on the Pune wine consumers’ perceptions of wine. Vishwakarma Business Review, ISSN: 2229-6514 (Print), 2230-8237 (online)

Venkatraman, D. (2012, October 11). Emerging wine consumption patterns in Pune. Redefining management practices: A perspective in changing business scenario, 01-07, ISBN :978-81-908387-9-5

[...]

---

¹ Lion Distributors. (2011). Retrieved April 2012, from http://www.liondistributors.com/legend-of-wine/

² Berkowitz, M. (1996, September). World's Earliest Wine. Archaeology Magazine , 49 (5)

³ Phillips, R. (2000). A short history of wine. New York: Ecco

⁴ Vergano, D. White wine turns up in King Tutankhamen's tomb. Retrieved April 2012, from http://usatoday30.usatoday.com/tech/science/columnist/vergano/2006-05-29-tut-white-wine_x.htm

⁵ wineportfolio, Great French Wine Blight. Retrieved March 2012, from http://www.wineportfolio.com/sectionLearn-Great-French-Wine-Blight.html

⁶ Watson, L., & Dallwitz, M. Retrieved March 2012, from The families of flowering plants: descriptions, illustrations, identification, and information retrieval: http://delta-intkey.com/angio/www/vitidace.htm

⁷ New World Encyclopedia. Retrieved March 2012, from http://www.newworldencyclopedia.org/entry/grape

⁸ New World Encyclopedia. (n.d.). Retrieved March 2012, from http://www.newworldencyclopedia.org/entry/grape

⁹ Wikibooks.org. (n.d.). Retrieved April 2012 , from http://en.wikibooks.org/wiki/Horticulture/Vitis

¹⁰ K. MacNeil The Wine Bible pg 12-21 Workman Publishing 2001

¹¹ H. Johnson & J. Robinson The World Atlas of Wine pg 20-21 Mitchell Beazley Publishing 2005

¹² Leve, J. The wine cellar insider. Retrieved April 2012, from http://www.thewinecellarinsider.com/wine-topics/wine-educational-questions/wine-grapes-vineyard-france-classifications-appellation-law/

¹³ Lillicrap, D., & Cousins, J. (2010). Food and Beverage Service (Eight Edition ed.). London: Book Power

¹⁴ Puckette, M. Retrieved February 2013, from http://winefolly.com/review/5-unbelievable-wine-regions/

¹⁵ Wine Institute. Retrieved June 2013, from http://www.wineinstitute.org/resources/statistics/article697

¹⁶ Department of Commerce Alcohol and Tobacco Tax and Trade Bureau . (n.d.). Retrieved October 2013, from http://www.statisticbrain.com/wine-sales-statistics

¹⁷ Chandra, A. www.gryphonbrands.com. Retrieved July 2013, from http://www.gryphonbrands.com/history_wine.htm

¹⁸ Chandra, A. www.gryphonbrands.com. Retrieved July 2013, from http://www.gryphonbrands.com/history_wine.htm

¹⁹ AIWPA. (2011). Key statistics of the Indian wine industry. (D. Corporation, Producer) Retrieved January 2013, from http://allindiawine.com.server11.atxservers.com/Markets/Domestic.aspx

²⁰ Sagala, Richard (2013). The Impact of General Public Wine Education Courses on consumer Perception. American Association of Wine Economists, Business. AAWE Wine Economics

²¹ Arora, S. Finally- Wine in Delhi Supermarkets. Retrieved June 2012, from http://www.indianwineacademy.com/item_7_387.aspx

²² Central Board of Excise and Customs. Retrieved June 2013, from http://www.cbec.gov.in/customs/cst2012-13/cst1213-idx.htm

²³ Mansoon, P. Wine spectator. Retrieved March 2012, from http://www.winespectator.com/Wine/Archives/Show_Article/0,1275,39,00.html

²⁴ Johnson, H. (1992). Vintage: The story of wine. New York: Simon & Schuster

²⁵ Cameron, D. (2013, March). Retrieved May 2013, from hms.harvard.edu: http://hms.harvard.edu/news/new-study-validates-longevity-pathway-3-7-13

²⁶ Liano, C. (2009, April 21). Study Shows Wine Drinkers With Non-Hodgkin's Lymphoma Less Likely to Die or Have Relapse. Retrieved January 2013, from WebMD: http://www.webmd.com/cancer/news/20090421/wine-may-protect-against-cancer

²⁷ The Indian Census. Retrieved March 2013, from http://www.census2011.co.in: http://www.census2011.co.in/census/city/375-pune.html

²⁸ Krejcie & Morgan 1970, “Determining Sample Size for Research Activities” (Educational and Psychological Measurement), 30, pp. 607-­610

²⁹ Merriam-Webster. Retrieved April 2013, from http://www.merriam-webster.com/dictionary/questionnaire

³⁰ Microsoft Excel 2011 Version 14 © 2010 Microsoft corporation

³¹ IBM SPSS Statistics Version 21© IBM Corporation and other(s) 1989,2012

³² The Indian Census. (n.d.) Retrieved March 2013, from http://www.census2011.co.in: http://www.census2011.co.in/census/city/375-pune.html

³³ Notification of amendment, dated 26th September, 2005 for Rule 70-D of the Bombay Foreign Liquor Rules, 1953.

³⁴ Department of Revenue, Ministry of finance, Government of India. Retrieved June 2012, from http://finotax.com/income-tax/slabs-prev

Frequently Asked Questions: A study into wine consumption patterns of Indians with special reference to the Pune region

What is the focus of this research?

This research analyzes wine consumption patterns in Pune City (Pune Municipal Corporation limits) to determine the demographic of wine consumers and their knowledge about wine. It also seeks to understand wine consumers’ perceptions towards wine.

What areas does the literature review cover?

The literature reviewed covers the development of wine in India, the impact the wine industry has on the Indian economy, details of major Indian wine manufacturers, information on Indian grapes and wine, perceptions of wine consumers, advantages and disadvantages faced by Indian wine manufacturers, and the health benefits of moderate wine consumption.

What are the objectives of this study?

The objectives are to analyze the demography of wine consumers, the level of acceptance of wine in a family environment, wine consumers’ perceptions towards wine, and the impact of knowledge of wine on consumption patterns.

What are the hypotheses being tested?

The hypotheses are: a significant relationship between wine consumption and age groups; a significant relationship between wine consumption and income levels; a significant relationship between wine consumption and education levels; female drinkers preferring wine; and wine consumers perceiving wine as a luxury drink.

What is meant by Viticulture?

Viticulture is the science, production, and study of grapes, dealing with events that occur in the vineyard.

What is meant by Vinification?

Vinification is the production of wine, starting with the selection of grapes and ending with bottling the finished wine.

What are the main types of wine mentioned?

The main types of wine include still wine, sparkling wine, fortified wine (like sherry, port, and Madeira), and aromatized wine (like vermouth).

What are some key tasting terms?

Key tasting terms include terms to assess the character of the wine, including body, acidity, tannin, length, and complexity. The study also gives flavor and aroma descriptions for popular grapes.

What are some advantages over imported wines?

Indian wine manufacturers have a pricing advantage over imported wines due to lower sale prices. This advantage impacts consumer perceptions as imported wines tend to cost more for the consumer.

What are some common myths about wine addressed?

Some myths addressed include the belief that wine gets better with age, Bordeaux wines are the best, white wine should be chilled while red wine is enjoyed at room temperature, and more expensive wines are better.

What is the significance of the Maharashtra Grape Processing Industry Policy, 2001?

This policy offers various incentives to wine manufacturers and grape growers in Maharashtra, including declaration as a preferential area, declaration as a small scale industry, concessions in excise duty and sales tax, streamlined wine sales licenses, and establishment of wine institutes.

What are the key regions for growing wine grapes in India?

The states of Maharashtra and Karnataka are the key regions. Nasik in Maharashtra is often called the "Wine Capital of India."

What type of grapes grow in India?

The varietals of grapes in India include Shiraz, Cabernet Sauvignon, Merlot, Chenin Blanc and Chardonnay.

What is the role of wine tourism mentioned in the study?

Wine tourism is an emerging area of interest with benefits, including foreign exchange earnings and job creation. A well-planned winery visit will increase the consumer base.

What does the Maharashtra policy extract provide for the wine industry?

The policy provides preferential treatment to grape processing and the wine industry, offering tax and excise benefits, simplified licensing procedures, and preferential financial options for wine businesses.

What was the sampling method used in the research?

The study used a purposive sampling method, specifically homogeneous sampling, focusing on individuals known to consume wine in the Pune region.

What statistical tests were used in the analysis?

The statistical tests used included Cross-Tabulation, Frequencies, Chi-Square tests, Binomial Test, Kruskal-Wallis Test and Mann-Whitney U test to analyze and interpret data.

What is the impact of gender on wine consumption?

Gender does not significantly influence wine consumption. Although women prefer wine, there is an equal distribution of men and women consuming wine.

What did the study say about consumer perceptions towards wine grading?

A large number of consumers are neutral to having basic or even no knowledge about Wine Grades. A large number of the sample population agreed that one must know about wine before they order it.