MRP - Wine Industry (09BS0002294) With Questionnaire

IBS MUMBAI

2011

TOPOGRAPHY OF THE

INDIAN WINE MAKING

INDUSTRY: A GLOCAL

PERSPECTIVE A MANAGEMENT RESEARCH PROJECT REPORT

SHYAM RAJ

I B S M U M B A I , O P P . H I R A N A N D A N I H O S P I T A L , P O W A I , M U M B A I - 4 0 0 0 7 6

Topography Of The Indian Wine Industry

A

Report

On

TOPOGRAPHY OF INDIAN WINE INDUSTRY

A GLOCAL PERSPECTIVE

SHYAM RAJ

Enrollment No. 09BS0002294

A report submitted in partial fulfillment of

The requirements

Of

MBA Program

Of the ICFAI University, Dehradun

(Date of Submission: 4th February, 2011)

Submitted to:

Dr. Samta Jain

(Faculty Guide)

IBS – Mumbai


ACKNOWLEDGEMENT

Milestones achieved in the journey of life are never achieved alone, and this is no exception. As I

have completed my Management Research Project, it gives me immense pleasure to present this

report on ―Topography of The Indian Wine Making Industry, A Glocal Perspective‖

undertaken by me at IBS Mumbai. The conducive learning environment and competitive culture

has enabled my task to be an easier one.

I express my gratitude to Mr. Prof. Y. K. Bhushan, our Senior Campus Advisor, for giving me

the opportunity to work on this report; then I thank Prof. Meenakshi Dhariwal, our Dean

(officiating).

I would like to thank my Faculty Guide Dr. Samta Jain for her support and professional

approach in guiding me through the careful details of the project. She has been a true source of

inspiration and has always extended her support. She not only helped me on the topic but also

helped me to understand the research applicability to practical life.

I would also like to express my gratitude to my Parents, friends and colleagues who have been

support in my effort to explore this area of study.

All the above mentioned people have left a mark on this project and I will always remain

indebted to them.


EXECUTIVE SUMMARY

Indian wine has a long history dating back to the time of the Indus Valley civilization when

grapevines were believed to have been introduced from Persia. Winemaking has existed

throughout most of India's history but was particularly encouraged during the time of the

Portuguese and British colonization of the subcontinent. Following the country's

independence from the British Empire, the Constitution of India declared that one of the

government's aims was the total prohibition of alcohol. Several states went dry and the

government encouraged vineyards to convert to table grape and raisin production. In the

1980s and 1990s, a revival in the Indian wine industry took place as international influences

and the growing middle class increased started increasing demand for the beverage. By the

turn of the 21st century, demand was increasing at a rate of 20-30% a year

The Indian government is planning to showcase ―Wines of India‖ across the globe. The

Agricultural and Processed Food Products Export Development Authority (APEDA) are

working out the strategy and the campaign will be finalized soon. India has recently received

its first order for wine exports to the US and Indian wines were also being served in

restaurants - both Indian and Western. Approximately 0.1 million liter of wine is exporting to

France, Italy, Germany, USA, New York, U.K. and Singapore from Maharashtra state. Stating

that the promotion strategy would include analyzing the internal support mechanisms

including easing tariff barriers for the liquor, the sources added, ―The promotion campaign

will target the US, the European Union, South Africa and Southeast Asia in a major way.

There is more and more awareness about wine as a product in Indian market. Changing life

styles, frequent travels abroad, more and more women employment Increase in per capita

income, international research on health benefits of wines; all have combined together to

create wine awareness in India; apart from the fact that good quality wines are now available

in the market.

Imported wines already constitute approx 20per cent of the total wines in India. The market

trends indicate year on year growth of approximately 20per cent for imported wines over the

next few years and the future is surely bright. That being said, the current slowdown for the


industry will most likely hit new importers, especially if they intend to import wines that are

not global brand names.

The Indian wine industry is currently on an upswing. Production and consumption are

expected to increase by 25% to 30% over the next 4 to 5 years. Being in the early stages of

market growth, the industry enjoys protection from the state as currently it fares low in cost

competitiveness when compared with the global benchmarks. This, coupled with growing

domestic demand, therefore orientates the industry highly towards the domestic market and

much less towards exports.

The wine industry is largely driven by favorable consumer trends induced by high growth in

disposable incomes. Rapid urbanization and growth in the retail is expected to sustain the

domestic demand for wine. The emergence of modern food retail chains will make wine

available for a new and fast expanding consumer base. Constructive policy measures in terms

of excise duty exemption, provision of infrastructure facilities such as wine parks and wine

institutes provided the necessary fillip to the industry for the establishment of wineries.

Investments are increasing fast. As a result the industry is currently on the verge of a new

phase of its lifecycle after the emerging phase, during which the latent demand for wine was

initiated.

Though dominated by few players at present, the wine industry is in an expansion phase with

more and more companies entering. These entries include small grape growers and specialized

wineries, as well several national and international beverage majors such as United Breweries,

Diageo, Seagram‘s, and the beer company Cobra, leveraging their distribution network and

brand-building skills. As distribution and brand building are key, these entrants are certainly

worth keeping an eye on; in particular when they establish specialized sales forces for Wine,

as selling wine is quite different than selling beer or spirits.

The industry is therefore expected to evolve further with intensifying competition, and more

investments in wineries and bottling facilities as well as in the distribution network, in

promotions and advertising. If increasing domestic demand supports such investments this


will ultimately result in the expansion phase in the lifecycle of the industry, leaving the

emerging phase. This will bring about new requirements and challenges, such as increased

competition, pressure on prices and the related need to be able to offer scale advantages. This

in turn will ultimately result in consolidation.

Indian wine companies are expected to adopt various business models in the current scenario.

It is important to note that Indian wine companies can currently not compete on costs, and

cannot continue to rely on government protection. Focus on the segment of cheap wines is not

an option and may ultimately impact demand when quality is not good enough. Companies

therefore need to focus on the quality segment of the wine offering to be able to compete and

sell their wines.


Contents

INTRODUCTION............................................................................................................................................................... 9

HISTORY OF WINE ......................................................................................................................................................... 10

HOW IS WINE MADE? ................................................................................................................................................... 10

HISTORY OF WINE IN INDIA ........................................................................................................................................... 17

Wine Regions – ............................................................................................................................................................. 19

Viticulture & Wine –...................................................................................................................................................... 19

INDIAN WINE MARKET .................................................................................................................................................. 20

SWOT Analysis .............................................................................................................................................................. 20

MARKETING AND ADVERTISING .................................................................................................................................... 21

PRESENT SCENARIO OF WINE INDUSTRY IN INDIA ......................................................................................................... 23

Major Wine markets of the World................................................................................................................................. 25

Types of wine ................................................................................................................................................................ 26

Red Wine - ................................................................................................................................................................ 26

White Wines – .......................................................................................................................................................... 30

Fortified wines .......................................................................................................................................................... 34

Champagne and Sparkling Wines .............................................................................................................................. 36

LIST OF TERMS USED ..................................................................................................................................................... 38

REVIEW OF RELEVANT LITERATURE ............................................................................................................................... 39

OBJECTIVE AND RESEARCH METHODOLOGY ................................................................................................................. 43

OBJECTIVE OF STUDY ................................................................................................................................................ 43

RESEARCH METHODOLOGY ....................................................................................................................................... 43

NEED OF THE STUDY ................................................................................................................................................. 44

LIMITATIONS OF THE STUDY ..................................................................................................................................... 44

RESEARCH PROCESS .................................................................................................................................................. 44

DATA COLLECTION:- .................................................................................................................................................. 45

SAMPLING PLAN ....................................................................................................................................................... 46

SAMPLING TECHNIQUE ............................................................................................................................................. 46

SURVEY STRATEGY .................................................................................................................................................... 46

DATA ANALYSIS ......................................................................................................................................................... 47


ANALYSIS AND INTERPRETATION .................................................................................................................................. 48

CONCLUSION ................................................................................................................................................................ 65

Recommendations and Suggestions .............................................................................................................................. 65

APPENDIX ..................................................................................................................................................................... 66

Wine preference may reveal aspects of your personality, March 24, 2010 by douglasgreen ............................ 66

Drug Alcohol Depend. 2005 Jun 1;78(3):339-44. Epub 2005 Jan 15., Wine preference and related health

determinants in a U.S. national sample of young adults ................................................................................................. 66

Indian Wine Industry Forecast to 2012, Publish Date: Nov, 2009, Copyright © 2010, RNCOS, 2002-2010 ....... 67

A Profile of the Wine Industry in India .............................................................................................................. 67

Non-Alcoholic Wines: Another Way to Enjoy Wine .......................................................................................... 67

Best of Indian Wines: Top 10 Indian Red Wines, by: Noreen | last updated: April 08, 2009 ............................... 67

QUESTIONNAIRE ........................................................................................................................................................... 68


INTRODUCTION

Wine is an alcoholic beverage made by fermentation of grapes or grape juice. The natural

chemical balance of grapes is such that they can ferment without the addition of sugars, acids,

enzymes or other nutrients. Wine is produced by fermenting crushed grapes using various

types of yeast. Yeast consumes the sugars found in the grapes and converts them into alcohol.

Different varieties of grapes and strains of yeasts are used depending on the type of wine

being produced. But now a day‘s other different type of flavor are also available in market for

e.g. apple wine, strawberry wine, plum wine cherry wine etc. It is the most popular beverage,

associated with happiness, celebrations and festivities. Global market for wine is estimated at

25 billion liters.

Many varieties of wines are made throughout the world. French wines are most popular. The

general classification of wines refers to red wines (made from grapes without removing

the skins), white wines (made from grape juice) and sparkling wines(carbonated white

wine). The alcohol content in wine varies from 10 to 14 %.

Wine like beverages can also be made from other fruits and grains. These beverages are also

referred to as wines, with a prefix or suffix. E.g. Apple wine.

Compared to other countries, wine manufacture and consumption in India is

Insignificant. This is attributed to earlier period of prohibition in the country and higher

compared to spirits like whisky and brandy manufactured in the country, referred to as Indian

made liquors. Wine manufacture on organized scale commenced in India with the setting

up of Champagne Indage‘s plant in 1984 in the state of Maharashtra.

Few more units have come up after that. The wine manufacturing units are located in Nasik

district of Maharashtra state as the climate there is found to be most suitable for grapes used for

wine making.

The Indian wine industry has been steadily growing over the last ten years. Wine is gradually

becoming a part of urban Indian life style. Rising incomes of Indian population, changing

demography and exposure to new culture is adding to the higher consumption. The market for

wine is expected to grow at the rate of 20% per annum. This scenario is promising to new

manufacturing units.


HISTORY OF WINE

Archaeological evidence suggests that the earliest known production of wine, made by

fermenting grapes, took place in sites in Georgia and Iran, from as early as 6000 BC. These

locations are all within the natural area of the European grapevine Vitis vinifera.

The oldest known evidence of wine production in Europe is dated to 4500 BC and comes

from archaeological sites in Greece. The same sites also contain the world‘s earliest evidence

of crushed grapes. Literary references to wine are abundant in Homer (9th century BC, but

possibly composed even earlier), Aikman (7th century BC), and others. In Ancient Egypt, six

of 36 wine amphoras were found in the tomb of King Tutankhamen bearing the name "Kha'y",

a royal chief vintner. Five of these amphora were designated as from the King's personal

estate with the sixth listed as from the estate of the royal house of Aten Traces of wine have

also been found in central Asian Xinjiang, dating from the second and first millennia BC.

In medieval Europe, the Roman Catholic Church was a staunch supporter of wine since it was

necessary for the celebration of Mass. Monks in France made wine for years, storing it

underground in caves to age. There is an old English recipe which survived in various forms

until the nineteenth century for refining white wine using Bastard—bad or tainted bastardo

wine. Wine was forbidden during the Islami Golden Age, until Jābir ibn Hayyān and other

Muslim chemists pioneered its distillation for cosmetic and medical uses.

HOW IS WINE MADE?

GROWING GRAPES


Grapes grow on vines. There are many different types of grapes, but the best wine grape is the

European Vitis vinifera. It is considered optimal because it has the right balance of sugar and

acid to create a good fermented wine without the addition of sugar or water.

HARVEST

Weather is a major factor is determining whether a year is going to be a "good vintage" (or

"year"). For example, was there enough heat during the growing season to lead to enough

sugar? At harvest time, the short-term effects of weather are quite important. To produce great

wine, the fruit should have a high (but not overly high) sugar content ("brix"). Think of

raisins.

As the fruit dries, the water evaporates. What is left is the sugary fruit. If it rains just at the

point the wine grapes are ready, and before the grapes can be harvested, the additional water

will cause the water level to increase, and the brix will go down. Not good. (You might ask,

why not just add some sugar in the wine making process? Some do. Also considered "not

good.")

Every year the wine grape grower plays a game of chance and must decide when to harvest.

Simplistically, if you knew it wasn't going to rain, you would just test the brix until it was just

right, then harvest. If you harvest too soon, you will probably end up getting a wine too low in

alcohol content (there won't have been enough sugar to convert to alcohol). These wines will

be "thin." If you delay harvest, there may be too much sugar, which leads to too low acid

content. This also affects the taste (and the aging possibilities) of the wine.

INITIAL PROCESSING OF THE GRAPE JUICE

Grapes can (and might still) be crushed by stomping on them with your feet in a big vat. But

a more practical way is to use a machine which does the job (and at the same time, removes

the stems).


What you get may or may not get immediately separated. Skin and seeds might immediately

be removed from the juice. Separation may not immediately occur (especially for red wines),

since skins and stems are an important source of "tannins" which affect wine's taste and

maturity through aging. (See Aging Wines.) The skins also determine the color of the wine

(see WHAT IS WINE).

Maceration (the time spent while skins and seeds are left with the juice) will go on for a few

hours or a few weeks. Pressing will then occur. One way to press the grapes is to use a

"bladder press," a large cylindrical container that contains bags that are inflated and deflated

several times, each time gently squeezing the grapes until all the juice has run free, leaving

behind the rest of the grapes. You can also separate solids from juice through the use of a

centrifuge.


OPERATIONS IN A WINERY

FERMENTATION - TURNING GRAPE JUICE INTO ALCOHOL

Grape juice is turned into alcohol by the process of "fermentation." Grapes on the vine are

covered with yeast, mold and bacteria. By putting grape juice into a container at the right

temperature, yeast (SACCHROMYCES ELLIPSOIDUES) will turn the sugar in the juice into


alcohol and carbon dioxide. The grape juice will have fermented. Fermentation is carried out

in stainless steel vessels.

Yeast also gives flavor to the wine. But the yeast that is on the grape skin when it is harvested

may not have the desired flavor. Other things on the outside of a grape are not good for wine

(for example, acetic bacteria on the grapes can cause the wine to turn to vinegar). The

winemaker can eliminate unwanted yeast's, molds and bacteria, most commonly by using the

"universal disinfectant," sulfur dioxide. Unfortunately, the sulfites which remain in the wine

may cause a lot of discomfort to some wine drinkers. (See ALLERGIC REACTIONS TO

WINE.). Some winemakers prefer NOT to do this, and purposely create wines that are subject

to the vagaries (and different flavors) of the yeast that pre-exist on the grapes ("wild yeast

fermentation").

The winemaker has many different yeast strains to choose from (and can use different strains

at different times during the process for better control fermentation ). The most common wine

yeast is Saccharomyces.

This is a good point to stop and mention "Brett," also known as the Brettanomyces strain of

yeast (which can be added or come from wild yeast fermentation). As yeast works, it causes

grape juice ("must") to get hot. But if there's too much heat, the yeast won't work. Cooling

coils are necessary to maintain a C.

A less modern, but still wide widely used way to ferment wine is to place it in small oak

barrels. "Barrel fermentation" is usually done at a lower temperature in temperature controlled

rooms and takes longer, perhaps around 6 weeks. The longer fermentation and use of wood

contributes to the flavor (and usually expense) of the wine.

The skins and pulp which remain in a red wine vat will rise to and float on top of the juice.

This causes problems (if it dries out, it's a perfect breeding ground for injurious bacteria), so

the winemaker will push this "cap" back down into the juice, usually at least twice a day. In

large vats, this is accomplished by pumping juice from the bottom of the vat over the top of

the cap.


Eventually the yeast is no longer changing sugar to alcohol (though different strains of yeast,

which can survive in higher and higher levels of alcohol, can take over and contribute their

own flavor to the wine-as well as converting a bit more sugar to alcohol).

After all this is completed what you have left is the wine, "dead" yeast cells, known as "lees

and various other substances.

MALO-LACTIC FERMENTATION

The winemaker may choose to allow a white wine to undergo a second fermentation which

occurs due to malic acid in the grape juice. When malic acid is allowed to break down into

carbon dioxide and lactic acid (thanks to bacteria in the wine), it is known as "malo-lactic

fermentation," which imparts additional flavor to the wine. A "buttery" flavor in some whites

is due to this process. This process is used for sparkling wines.

FIRST RACKING

After fermentation completed naturally or stopped by addition of distilled spirit, first racking

is carried out. This involves the wine to stand still until most yeast cells and fine suspended

material settle out. The wine is then filtered without disturbing the sediment or the yeast.

WINERY AGEING

The winery may then keep the wine so that there can be additional clarification and, in some

wines, to give it a more complex flavors. Flavor can come from wood (or more correctly from

the chemicals that make up the wood and are taken up into the wine).

The wine may be barrel aged for several months to several years. No air is allowed to enter

the barrels during this period.

Ignoring any additional processing that might be used, you could empty the barrels into

bottles and sell your wine. However, during the winery aging, the smaller containers may

develop differences. So the winemaker will probably "blend" wine from different barrels, to


achieve a uniform result. Also, the winemaker may blend together different grape varieties to

achieve desired characteristics.

STABILIZATION, FILTRATION

Stabilization is carried out to remove traces of tartaric acid. These tartarates present in the

grape juice tend to crystallize in wine and if not removed completely can slowly reappear as

glass like crystals in final bottles on storage.

Stabilization with respect to tartarates may involve chilling of wine that can crystallize

tartarates and these crystals can be removed by filtration.

PASTEURIZATION

If the wine has an alcohol content less than 14% it may be heat pasteurized or cold pasteurized

through micro porous filters just before bottling.

BOTTLING WINE

Producers often use different shaped bottles to denote different types of wine. Colored bottles

help to reduce damage by light. (Light assists in oxidation and breakdown of the wine into

chemicals, such as mercaptan, which are undesirable.


HISTORY OF WINE IN INDIA

Indian wine has a long history dating back to the time of the Indus Valley civilization when

grapevines were believed to have been introduced from Persia. Winemaking has existed

throughout most of India's history but was particularly encouraged during the time of the

Portuguese and British colonization of the subcontinent. Following the country's

independence from the British Empire, the Constitution of India declared that one of the

government's aims was the total prohibition of alcohol. Several states went dry and the

government encouraged vineyards to convert to table grape and raisin production. In the

1980s and 1990s, a revival in the Indian wine industry took place as international influences

and the growing middle class increased started increasing demand for the beverage. By the

turn of the 21st century, demand was increasing at a rate of 20-30% a year

Historically, grapevine (Vitis vinifera L.) is grown mostly for wine making in the world over.

In India on the contrary remarkable success has been achieved in table grape production and

yield levels of fresh grapes are among the highest in the world. At present in India grape is

grown over an area of 60,000 ha with an annual production of 1.6 million tonnes ( FAO,

2005).

Wine has been made in India for as many as 5,000 years. It was the early European travellers

to the courts of the Mughal emperors Akbar, Jehangir and Shah Jehan in the sixteenth and

seventeenth centuries A.D. who reported tasting wines from the royal vineyards. Both

red (Kandhari) and white wines (Bhokri, Fakdi, Sahebi etc.) were produced. Under

British influence in the nineteenth century, vineyards were established in Kashmir and at

Baramati in Maharashtra and a number of Indian wines were exhibited and favorably received

by visitors to the Great Calcutta Exhibition of 1884. However, Indian vineyards were totally

destroyed by unknown reasons in the 1890s.

Due to limited domestic consumption of wine and non availability of standard wine varieties

to produce good quality wines of international standards, much emphasis was not given for

research during previous decades in India. Commercial wine grape production, however in

India has begun only since 1980‘s. Although exact figures are not available regarding the


current area and production of wine grapes in India it is estimated around 1000 hectares in

Maharashtra and about 200 hectares near Bangalore in Karnataka. Among these vineyards 70

per cent are yielding another 30 per cent are in establishment stage. In Maharashtra, wine

grapes are grown in 3 regions, such as Pune-Narayangaon, Nashik and Sangli-Solapur areas.

It is expected when all these vineyards start yielding in about 2-3 years, around 15,000 tons

of wine grapes will be ready for crushing each year yielding on an average of 90 lakh liters

of wine annually. There is a steep annual growth rate of about 20% in the present turnover of

around Rs. 200 crores. Demand for imported wine is increasing day by day in India. About

38 private wineries have come up in the country 36 exist in Maharashtra and one each in

Karnataka and Goa. The total investment on wineries of Maharashtra was Rs. 77.75 crores in

2004 and rose to Rs. 109.17 crores in 2005.

These private wineries were initially established under joint set-up with European

collaborations, preparing wine from standard varieties. The most popular red varieties in

cultivation are Shiraz, Cabernet Sauvignon, Pinot Noir and Merlot and for Rosae still wines,

Zinfandel is used. The most popular white wine grapes are Chenin Blanc, Sauvignon Blanc,

Ugni Blanc, Viognier, Chardonnay and Riesling.

To meet the domestic demand and for exporting wines from India, good quality wines

comparable to standard wines of Europe and USA has to be produced. To give impetus to the

grape processing and wine industry in Maharashtra and for the benefit of farmers, the state

announced a comprehensive ‗Wine Policy‘ in 2001 and recently in September, 2005 it

has established ‗Maharashtra Grape Board‘ especially to develop marketing channels

for grape products in our country.


Wine Regions –

Vineyards in India range from the more temperate climate of the northwestern state of Punjab

down to the southern state of Tamil Nadu. Some of India's larger wine producing areas are

located in Maharashtra, Karnataka near Bangalore and Andhra Pradesh near Hyderabad.

Within the Maharashtra region, vineyards are found on the Deccan Plateau and around

Baramati, Nashik, Pune, Sangli and Sholapur. The high heat and humidity of the far eastern

half of the country limits viticulture activity.

Viticulture & Wine –

The heat and humidity of India's wine region dictates many of the viticulture choices that are

made in the vineyards. Vines are often trained on bamboo and wire in a pergola to increase

canopy cover and to get the grapes off the ground where they would be more prone to fungal

diseases. The canopy protects the grapes against sunburn and rows are spaced wide to help

with aeration between the vines. Irrigation is essential in many of India's wine regions and

since the 1980s, drip irrigation has been widely used. The tropical conditions often promote

high yields which requires frequent pruning throughout the year. Harvest normally takes place

in September and is usually done by hand. In the very warm wine regions of Tamil Nadu,

Karnataka and Andhra Pradesh, grapevines can produce a crop twice a year.

India is home to several indigenous table grape varieties that can also be used in wine

production with Anabeshahi, Arkavati and Arkashyam being the most common. Popular non-

native grapes include the Bangalore Blue (Isabella) and Gulabi (Black Muscat).

The Turkish grape Sultana is the most widely planted grape in India, cover more than half of

the 148,000 acres (60,000 ha) planted in the country. In addition to the imported French

varieties that Chateau Indage planted, Sauvignonblanc, Zinfandel, Chenin

blanc and Clairette have started to establish a presence in the Indian wine industry.


INDIAN WINE MARKET

The Indian Wine Industry is growing at 25-30% per annum and currently stands at 4.6 million

liters in volume terms and Rs 450 crore in value terms. The wine market is expected to

grow to 8.3 million liters by 2010. Per capita consumption of wine remains extremely

low in India; however, there is growing consumer interest in wine with a number of

wine clubs opening in Delhi, Chandigarh, Hyderabad and Bangalore.

Nearly 80 per cent of wine sales are accounted for by the major cities, especially New Delhi,

Mumbai, Chennai, Kolkata, Pune and Bangalore. West India accounts for over 41 per cent of

total volume sales of wine in India, followed by North India, which accounts for 29 per cent of

volume sales. Nearly 90 per cent of wine sales are for still (that is, red and white) wines.

Sparkling and rose wines, in contrast, target select segments of particularly affluent consumers.

The main market is for wines selling at Rs.300 per bottle. Even though cheaper verities are

available, the market is not growing as fast as medium priced wines.

SWOT Analysis Strengths

Indian wine consumption has grown

25-30% annually over a 5 year period.

Good climate for grape growing

Urban population is increasing.

Youth are craving an alternative to

hard liquors and developing a more refined taste.

Wine is becoming more acceptable

to women and youth.

Weaknesses

Wine is difficult to store in India due to lack of cellars and refrigeration.

Less than 50 percent of the population is

legally old enough to drink (25 yrs. old).

400 million persons are 18 years old or

younger.

Poor awareness of wine and infrastructure.


Opportunities

100 million persons will be legally

allowed to drink alcohol (25 yrs. old) in the next 5 years.

Supermarkets are emerging to support wine distribution infrastructure.

Domestic market with increasing disposable income.

Growing tourism industry.

Threats

The Indian constitution discourages

alcohol consumption.

Wine viewed as a “sin” by some.

Indians still prefer whisky.

Advertising for alcoholic beverages is banned.

Domestic wine production is coddled by state governments.

MARKETING AND ADVERTISING

Television:

Television advertisements for alcoholic products are illegal in India, so other means have been

devised to present alcoholic beverages to the public. Many companies participate in

―surrogate‖ advertising by which they present an advertisement that only mentions the name

of the company without any direct allusion to their alcoholic beverage.

Magazines:

Magazines are also prohibited from advertising alcohol except for the Sommelier India

magazine which is dedicated to the wine trade in India. The magazine is written by Indian and

international writers, and contains articles and information about the wine culture in India as

well as wine profiles that critique different wines.

Expos:

Wine Expos and wine shows like IFE-India, Vinitaly India in Delhi, and Annapoorna India in

Mumbai have become important vehicles for wine companies to do market surveys and have

wine tasted by potential customers. Many expos and shows take place throughout India and

are generally posted on Indianwine.com and Sommelier India.


On Site:

On-site promotion can often be allowed although it is far less common. In Delhi, it is

prohibited to promote/advertise alcohol products; therefore, many companies engage in

surrogate advertising, in which they advertise their brand names without referencing alcohol

(a common example is for a company to say ―Johnny Walker‖ but have no mention or picture

of the whiskey.

Clubs:

Wine clubs serve a crucial purpose in making, selecting and, purchasing wines for their

members, among other tasks. These institutions make the entire process approachable and

easy for the consumer, and they also provide a selling outlet for the producer. By making wine

less intimidating, wine clubs involve people who would otherwise be discouraged by it.


PRESENT SCENARIO OF WINE INDUSTRY IN INDIA

This paper reviews the nascent Indian wine industry in terms of the area, production and

marketing of wines in the country. Approximately 38 wineries are presently operating in the

country with a total production of 6.2 million liters annually. Maharashtra is leading among

the states with 36 wineries and 5.4 million liter production. Apart from this, 72,000 wine cases

are imported mainly by ITDC, Sansula, Brindco, E & J Gallo and other private companies. At

present 7, 62,000 wine cases are sold every year, which includes 46,000 cases of sparkling

wines. This is in contrast to the much higher figures of other drinks such as whisky, brandy

and rum sold in the country. Eighty percent of wine consumption in the country is confined

in major cities such as Mumbai (39%), Delhi (23%), Bangalore (9%) and Goa (9%). There is

growing awareness about the wine as a product in the domestic market.

Poor storage and transport facilities in spite of tropical climate are the main problems of wine

marketing in the country. Other constraints are the lack of promotional activities for wine

consumption in the country and unfavorable rules for domestic marketing of wines except in

few states. These and other factors contributed to India‘s low wine consumption which is

hardly 0.07 L per capita. Certain promotional strategies, such as easing of tariff barriers for

the wines, developing awareness on health benefits of wine and to supply good quality wines

in reasonable prices in the domestic market are emphasized.

Contributions made by major wineries such as, Champagne Indage (CI), Grover Vineyards

and Sula Vineyards for indigenous production of quality wines in the country are highlighted.

CI at Narayangaon is a pioneer of French style wines in India, produces exquisite qualities in

both still and sparkling wines. The company has the capacity of producing over 3 million

bottles annually. Some of their wines are exported to many European and Asian countries.

The company has a good collection of European wine varieties. The Grovers

Vineyards located in southern Karnataka state also exports wines worth $ 4,35,000 every year.

This company has 200 hectares of vineyards under wine grapes of 35 varieties. Sula

vineyards at Nashik has new welcome additions to India‘s smarter wine list. In Nashik region

‗Chenin Blanc‘ is quite predominantly grown but emphasis should be given to red wine


varieties. Sangli is another region but here farmers are advised to choose appropriate varieties

depending upon soil and microclimate.

Grape growing is a highly capital intensive project, concerted efforts are required by the

Financial agencies to reduce the rate of interest to 6-7% from the present 10-13%. Viticulture

and wine making aspects influencing the quality of wines have been emphasized on. Wine

grape cultivation practices are given in detail along with the prominent European varieties

which are commercially grown in the country. The performance in terms of fruit yield, juice

yield, TSS, acidity and pH measurements of major wine varieties are presented. The

discussions highlighted in this paper will be of immense value to the grape growers, wineries,

policy makers, financial institutions and government agencies dealing with the production.


Major Wine markets of the World

Out of world‘s total annual production of 32 billion liters‘, the following are among the top

countries and MNC‘s have their major share in the world wine market.

France 5.6 billion

liters

Italy 5.3 ―

Spain 3.5 ―

US 2.2 ―

Argentina 1.4 ―

Germany 1.0 ―

South Africa 770million

liters

Australia 750 ―

China 690 ―

Gallo (MNC) 675 ―

Portugal 611 ―

In case of Australia, that export 230 million liters annually worth more than 1 billion

dollars and UK is its major market worth $489 million.


Types of wine

Red Wine -

Red wine is made from grapes that are usually red or purple in color. The color of the wine

comes from leaving these dark colored skins in with the juice during the wine making process.

This is different from white wine where the skins are removed before the wine making

process begins.


Wine has been around for thousands of years. Until recently the process to make red wine, no

matter what grape was used, was always exactly the same. In the 1940s, wine makers began to

experiment with the wine making process. Today, wine makers use a variety of different wine

making techniques leading to the unique combination of taste, aroma and flavor in each wine

you try.

It is also different from white wine because of the tannin from the grape skins. Tannin gives it

the ability to age longer than white wine. It also allows the wine to continue to improve during

the aging process.

You may have noticed the wine is categorized as having one of three body types: light bodied,

medium bodied and full bodied. The body type does not refer to how the wine tastes, instead it

gives you an idea of its overall depth and structure.

Red wine is the most popular and preferred form of wine world over. But not many people

know about the different types of red wine. The wines are classified according to the grapes

they are produced from and the area they are prepared in. when only one variety is mentioned

on the bottle, it is called a ‗varietal wine‘. Such wines are named after the grape and the first

letter would be a capital letter. Read on to know the different types of red wine.

Syrah / Shiraz (Pronounced as See-Rah / Shear-Oz)

Syrah wine, also known as Shiraz, is produced widely in places like Rhone Valley (France),

California and Australia. The Syrah is known for its rich aroma and dark color. The taste

usually is a rich, fruity black-currant one. The Syrah is one of the most common grape

varieties. Depending on the location and fermentation of the grapes, it is used to produce a

spicy, complex wine or a simple wine. Shiraz wine is usually used to produce some of the

finest wine varieties in the world with dark color and rich aroma and flavor.

Merlot (Pronounced as Mehr-Low)


The Merlot is preferred by people these days due to the fact that it has a very soft and light

taste. The Merlot grapes can be used independently to make Merlot wine and can also be

blended with other grapes to produce some really fine wines. A cool consistent climate is

preferred to grow Merlot wine grapes. It is grown in abundance in Italy, Romania, California,

Washington State, Chile and Australia. The typical flavor of this wine resembles with the taste

of black cherry and herbs.

Cabernet Sauvignon (Pronounced as Cah-burr-Nay Sow-vee-Nyoh)

One of the best varieties of wine, Cabernet Sauvignon is said to be one of the best varieties of

wine, accepted world-wide. It is fermented in oak barrels to give it a unique taste. Cabernet

Sauvignon grapes are most widely planted grapes world over. The grapes need ample

sunshine and well-drained soils to grow. This wine is supposed to have health properties and

when taken in moderation, is supposed to have health benefits like preventing cardiovascular

diseases.

Pinot Noir (Pronounced as Pee-noh Nwah)

A rare variety, the Pinot Noir is known as the noblest variety of red wine grape. This rare

grape is not very easy to grow and is produced in select places like Loire valley, California,

Oregon, and New Zealand. Pinot Noir grapes are among the oldest varieties of wine grapes

that are grown. Often, it so happens that the parent grape may produce a fruit that may be

totally different in size, flavor, color and even aroma.

Zinfandel (Pronounced as Zin-fan-Dell)

This is one of the most versatile wines and is grown only in California. It is used to produce

the red as well as white wines. The Zinfandel grapes are red skinned and have a very luscious

texture. The skin is usually quite thin and if not picked in time, it may rot quickly. They grow

in tight bunches and the fruits have much depth of flavor.

Sangiovese (Pronounced as San-jo-vay-zay)

Sangiovese wine is produced in Tuscany (Italy) and California. It has a strong plum and berry

taste and is one of the most important grape that is planted. They are black colored grapes and


are widely grown in Italy. These grapes usually give a high yield, even though they take time

to ripen. The Sangiovese grapes produce wines that have medium to high natural acidity.

Barbera (Pronounced as Bar-bear-ah)

Though it has similar attributes as the Merlot, it is not as popular. This is a versatile wine and

is produced on a large scale in California. It has a silky texture, juicy plum fruit taste and just

the right amount of acidity. The grape that is used to produce Barbera wine is a juicy black

one that grows in long tight bunches.


White Wines –


White wine differs from red wine in, first and most obviously, color. Under that skin, the

pulpy part of a white grape is the same color as that of a red grape. The skin dictates the end

color for red wine, which differs from the white's color determinates.

Color in white wine does vary, often from the type of grape, occasionally from the use of

wood. Listed below are a few of the most common white varieties in the world wine market

and of wine.com. They are listed from lighter bodied, and lighter colored, to fuller bodied

with deeper colors. The list is not set in stone – winemaker's decisions and climate may affect

the end result of a white wine's body and color – we just give you the guidelines.

Grapes/Region Where primarily grown

Champagne Champagne, France

Pinot Grigio/Pinot Gris Alsace, France; Italy; Oregon; California

Sauvignon Blanc Loire, France; New Zealand; California; South Africa

Chenin Blanc Loire, France; South Africa

Riesling Germany; Alsace, France; Australia; New Zealand;

Washington State; California

Chardonnay Burgundy, France; Australia; California; South America;

South Africa; Oregon

Viognier Rhone, France; California

Other white grapes to notice, listed alphabetically:

Grapes Where they grow best

Albariño Spain

Gewurztraminer Alsace, France; Germany

Sémillon Bordeaux, France; Australia


White Wine Types

The taste and texture of the white wine differs according to the different types of grapes that

are used to prepare the white wine and also several other variables like the weather, soil, yeast

and the aging manner of the wine. White wine or any of the different types of wine differ

according to the outside conditioning that the grapes go through along with the process

of wine making. The more they are pampered, the best types of wine they produce.

Chardonnay

Chardonnay is the most famous and largest selling white wine amongst them all. There is the

"ABC; Anything But Chardonnay" formula that tells us the popularity of the Chardonnay

white wine. Chardonnay can be said as the best wine to accompany a great food. Chardonnay

is also referred as the queen of white wines. Chardonnay white wine is medium to highly

acidic with the hint of nuts, oak, fruits, vanilla and several spices as well.

Gewürztraminer

Gewürztraminer is the famous white wine that is largely produced in Germany and France

(Alsace). Gewürztraminer is a type of German wine, the name actually means "spicy".

Gewürztraminer is a sweet wine that has floral fragrance. This type of white wine is produced

in the cooler parts of the world. Gewürztraminer has light acidity and crispy bold flavor.

PinotGrigio

Pinot Grigio is known as Pinot Gris in the US. Pinot Gris is the second most favorite white

wine amongst the wine admirers. Pinot Grigio tastes best when combined with delightful

seafood! Pinot Grigio has a citrus aroma. European Pinot Grigio is acidic than the American

Pinot Gris.

SauvignonBlanc

Sauvignon blanc is also known as 'fumé blanc'. Sauvignon blanc is very popular amongst the

middle class white wine admirers as it is the most cost effective wine amongst all other types


of white wine. It is mostly produced in Loire and Bordeaux which are the wine regions of

France. Sauvignon blanc is also produced in South Africa, California and New Zealand.

Sauvignon blanc has very crisp and light acidic taste. Sauvignon blanc is a totally aromatic

type of white wine with a flavor of lemon, gooseberry and grapes. Nothing can compare the

shining glass of Sauvignon blanc combined with delicious coconut shrimp!

Riesling

Riesling, the most expensive white wine, is ideal for a special occasion. Riesling is produced

in Germany, France and Finger Lakes District of New York. Riesling has a great fruity aroma

and medium to light acidic taste. Riesling has a great ability to age and taste the most

delightful. Riesling can age more than many of the red wines as well! Riesling and

Asian cuisine can be said as the ultimate lip-smacking combination!

Viognier

Viognier is a type of French wine, primarily made in the Rhone region of France and also in

California. Viognier has a great tropical smell, like a banana or a peach. Viognier has the

highest alcohol levels amongst all types of white wine. Since the Viognier has a great floral

and tropical aroma any rich tropical food or baked brie cheese will suit just great with it.

Along with the above mentioned types of white wine, semillon, muscat, roussanne or

marsanne are also very popular amongst the white wine aficionados. White wine always seem

interesting when combined with different cuisines. You can learn more about the different

types of wine by joining one of the wine clubs in your city, they can be a great help regarding

wine and all the information on wine making as well. This was all about the different types of

white wine, I hope now you have decided your kind of white wine that will suit your taste!


Fortified wines


A fortified wine is a wine to which spirits such as brandy have been added. In addition to

raising the alcohol content of the wine, the spirits also change the flavor profile, making a

unique and very distinctive wine. While fortified wine was originally born out of necessity,

consumers began to appreciate and enjoy the flavor, and so producers continue to make it.

There are a wide number of varieties of fortified wine, although some of the most famous

are Vermouth from France, Marsala from Italy, Sherry from Spain, and Madeira and Port

from Portugal. Most fortified wines are named after the regions that they are produced in, as

each regional fortified wine has a distinct style. They may also be further classified by grade

and fermenting process, as is the case with sherry, which comes in varieties like Fino and

Oloroso. In some cases, a fortified wine may be protected with an Appellation of Controlled

Origin, meaning that only wines from a certain region may bear that name. Wines not made in

that region can only be labeled as being in the ―style‖ of that particular area.

The origins of fortified wine can be found in the 16th century, when a growing number of

countries were exporting wine. Unfortunately, these wines were not terribly shelf stable, and

they often went bad during the shipping process. To compound the problem, the wines were

also not able to stand up to the often violent movements below decks. In an effort to preserve

their wines, winemakers began adding brandy, creating fortified wine.

In brandy is added before the fermentation process begins, the result is a very sweet, rich

fortified wine such as Port, which is often used as a dessert wine. Adding brandy afterwards

makes a more dry wine, like traditional dry Vermouth. Depending on how the wine is aged

and handled, the flavor can vary widely, from the mellowness of cream sherry to the extreme

tartness of extra-dry vermouth.


Champagne and Sparkling Wines


Champagne, that wonderful nose tickling beverage, is by far the most famously celebrated of

all sparkling wines.

Champagne is a type of Sparkling Wine, but...

The type of sparkling wine that can be truly called Champagne is made only from grapes of

the Champagne region of France.

Not only that, but French law dictates that all sparkling wines made in that area must be made

by a special process called the traditional orchampagne method. The French term is méthod

champenoise. Only then, should it be called Champagne.

Bubblies produced in other parts of the world, even if they are created by the traditional

method, should be referred to as sparkling wines.


LIST OF TERMS USED

Vineyard- The farm where wine grapes are grown for wine production.

Wine grapes- Special grapes used for wine production.

Viticulture- The science, cultivation and study of grape growing.

Fermentation- The process by which grape sugar turns into alcohol and carbon dioxide.

Winery- A winery is a facility where fruit, usually grapes, is processed into wine. Some

wineries are located on the same site as the vineyard whose grapes they process, while others

process grapes they purchase from vineyards many away from their production site.

Clarification- umbrella term for a host of processes designed to ensure wine is crystal clear,

including fining, filtration and refrigeration.

Treading(Crushing)- an important winemaking operation involving literally pressing the

juice (white wines) or astringent press wine out of the skins.

Stabilization- umbrella term for all the winemaking operations designed to stop wines

developing a fault in bottle such as a haze, cloud or fizz, no matter what the storage

conditions. It is practiced most brutally on everyday wines.


REVIEW OF RELEVANT LITERATURE

Growth of India wine market

India has emerged as one of the fastest growing markets for wine on the global map. Despite

the country‘s vast population of over 1.1 Billion, the consumption of wine remains extremely

low. The per capita consumption of wine in the country was estimated at around 9 Milliliters

in 2008, indicating huge potential for growth in the coming years.

Various factors such as favorable government policies, increasing disposable income,

amplified wine marketing and influence of western culture are helping to drive India‘s wine

consumption. According to our latest research report, ―Indian Wine Industry Forecast to

2012‖, wine consumption in India is expected to grow by 35-30% annually between 2009 and

2012.

We have found that various policies by the state level governments are encouraging domestic

wine producers to set up their own wineries in the country, giving a boost to the domestic

industry. Efforts by the Maharashtra and Karnataka governments remain far-fetched in this

regard. However, such measures have raised concerns to WTO which states that India is

adopting protectionist policies for its domestic wine industry meanwhile curbing growth of

imports.

While local players are including affordable imported wines in their portfolios to attract new

consumers, foreign firms are trying hard to expand in the market owing to high rate of tax

levied. Our research indicates that the premium wine segment in the country is dominated by

imported wines. This is because domestic wines are still unable to demand a high price,

largely because of low brand awareness and lack of quality taste. Meanwhile, total

consumption is dominated by domestically-produced cheap wine.


―Indian Wine Industry Forecast to 2012‖ provides extensive research and rational analysis on

the wine market in India. Our research gives deep insight into India‘s wine consumption in

terms of domestically-produced and imported wines, price structure, sales by location, type of

wine consumed and a possible regional segmentation. Our research also highlights the market

trends and developments that are expected to play key role in the growth of Indian wine

market over the forecast period. Besides this, the report provides thorough analysis on the

wine production, wine exports and wine import of the country.

Internationally the wine industry has faced a lot of challenges such as competition with global

connoisseurs of wine in Europe, improving the quality of wines in India, sustaining high

growth rates and increasing consumption of wine. In order to address these challenges, the

government is planning to simplify the complicated structure and introduce a uniform duty

structure to process tax and duty calculation. Several Indian states, including Maharashtra, the

largest producer of Wine in India, have started to provide duty exemptions. Also, boosting

wine consumption is the commissioned sanctioning of wine bars in Maharashtra. The

government has also initiated the establishment of wine parks in grape cultivating regions in

India. Recently, several state governments are taking initiatives to promote wine tourism.

Project report on setting up wine Industry

By: Gowaribidnoor

Bangalore

Submitted to Karnataka Wine Board

Findings:

Though the market share of wine among the alcoholic beverages is surely but steadily

increasing, still it is at a very primary stage. The challenge before the winemakers in India is

to develop the domestic market, as a majority of the Indian consumer prefers beer, whisky,

and rum and sometimes even home brewed spirits over champagne and wine.

The statistics on the Indian Made Foreign Liquor (IMFL) shows that the consumption of wine

in India is not more than 2% of the entire IMFL consumption.


The international market is a promising arena for the Indian wine. The Indian wine industry

though as its infancy stage, is hoping to challenge the supremacy if wine countries in an effort

to gain a foothold in the international market.

Though they get most of their technology and advice from Europe, Indian winemakers are

now promoting themselves in a big way to catch the attention of the rest world. The favorable

climatic conditions and superior quality of Indian grapes would provide an added advantage to

attain this objective.

Wine promotions in restaurants: do beverage sales contribute or cannibalize?

(Financial report)

By: Brian Wansink & Glenn Cordua & Ed Blair & Collin Payne & Stephanie Geiger

Findings:

A controlled field study of wine promotions in a mid priced chain restaurant generated three

key findings: (1) selected wine recommendations increased sales by 12 percent, (2) food-wine

pairing recommendations increased sales by 7.6 percent, and (3) wine tastings increased sales

by 48 percent. In general, 69 to 87 percent of the increase in sales of promoted wines comes

from diners who would likely have ordered a non-promoted wine. This means that 13 to 31

percent of the increase comes from diners who would have otherwise ordered liquor, beer, and

nonalcoholic drinks. Specific implications for responsible restaurateurs are outlined, including

the caveat to not cannibalize sales by promoting a lower-margin, lower-profit wine.

• The historical and projected increase in wine sales is caused by a convergence of several

factors. Among which are the fit between the product attributes and the market‘s demand for

sweeter and fruitier liquors, the classy image of wine drinking, trend towards healthier

products, and the influx of cheap wines.

• Still, the current base of wine drinkers in the country is less than half of the total potential wine

consumers. The potential wine market is large compared to the current volumes.

• Almost all of the current drinkers of wines are enthusiasts or ―consumers.‖ In fact, only 0.1%

of the current drinkers are connoisseurs who occupy a small niche in the industry. The

enthusiasts are drinking wines because of its sweet and fruity taste, smoothness, health

benefits, and lower alcoholic content. However, they are price conscious, preferring economy

priced wines. Also, they are not versed and sometimes averse to the ―idiosyncrasies‖ of wines

and wine drinking.


• As mentioned, economy-priced wines are responsible for the increase in wine sales, as it now

constitutes 83% of the total wine sales. The remaining 17% goes to the middle to premium

priced wines, which are bought by the connoisseurs.

• Ninety percent of the wines being bought are still wines. Red accounts for 73%. The popularity

of still wines may be attributed to the fact that other wines like sparkling and specialty wines,

cost more and are less promoted by their importers.

• New World wines, particularly from Chile, are the most popular wines because of their

simplicity, taste, and price, which are attributes appreciated by majority of the market.

Further, these wines are more modern in terms of packaging and even content. Thus, they are

not intimidating to the enthusiast-consumer who shies away from old world wines.

• The wine importers have three strategies. The ―niche strategy‖ used by importers of middle to

premium priced wines cater to the connoisseurs. The ―piggy backers‖ treat wines as a mere

product portfolio addition, while focusing on more profitable alcoholic products. The

―branders‖ treat the wines as consumer products, backed with traditional marketing strategies.

• The two distribution channels for wines, the on and off premises, have increased in sales

turnover. Although majority of the people still buy from off-premise outlets, more people are

purchasing and drinking wines in the on-premise. Both distribution channels have their own

set of marketing practices that wine companies need to know in order to compete in.

• ―Branded‖ wines control the market since they are able to forge an affinity and relationship

with the otherwise confused consumer. Further, the top branded wines all possess the taste

qualities demanded by the critical mass. These wines create awareness for themselves through

push and pull marketing practices and generating a good word-of-mouth buzz around their

brands.

• The current market leaders also benefited from being the first-movers in the industry,

marketing-wise. Asti Martini is now the benchmark of sparkling wines because it was the first

brand to advertise on TV seven years ago. Carlo Rossi and Novellino were also the first and

only brands of still wines to have television and print advertising. Gato Negro was the first

Chilean wine to gain popularity since it was ahead in recognizing the value of being house

wine of the top on-premise establishments. Connecting this to the impulsive and emotional

behavior of the market and the fact that these consumers are generally not interested in the

―elitist‖ elements of wine drinking, first-movers instantly create awareness and affinity with

the market since these brands ―eased‖ these people in the world of wines.


OBJECTIVE AND RESEARCH METHODOLOGY

OBJECTIVE OF STUDY

The research objective is a statement, in as precise terminology as possible, of what

information is needed. The present research was undertaken with the following objective to

ensure that the research purpose is satisfied.

To know what profile of people mostly like the wine.

To know the choice of people towards wine.

To know on what occasion they like wine most.

To know the factor which influences people to buy wine?

To know what they prefer to eat with wine.

RESEARCH METHODOLOGY

Research methodology is a strategy that guides a research in providing answers to research

questions and for this, research survey is being done. ―Accuracy of the study depends on the

systematic application of the method‖. The researcher has to decide the method to be used that

helps him to get a desired direction in a systematic way.

Research always starts with a question or a problem. Its purpose is to question through the

application of the scientific method. It is a systematic and intensive study directed towards a

more complete knowledge of the subject studied.

Research Methodology is the investigation of specific problem in detail. At first problem is

defined carefully for conducting research. There should be a good research plan for


conducting research. No research can be done without data collection. After all this analyze is

made for getting solution for problem.

Defining the problem

Defining the sampling plan

Collection of data

Analyze and interpretation

NEED OF THE STUDY

The NEED of this study is find out about various factors leading to the purchase of wines in

India and the taste and preference of consumers. The quality of wine can be improved in India

according to the international standards. The study also throws light on other demographics

contributing to the growth of this industry in India and in the minds of Indian consumers.

LIMITATIONS OF THE STUDY The survey was restricted to Mumbai, so the regional differences if any could have affected

the study.

Due to the time and resource constraints the sample size had to be restricted.

Some time respondents did not give accurate information.

Female customers were not interested to fill the questionnaire, it is may be social or cultural

reason.

RESEARCH PROCESS The research process has four distinct yet interrelated steps for research analysis

It has a logical and hierarchical ordering:

Determination of information research problem.

Development of appropriate research design.

Execution of research design.

Communication of results.


Each step is viewed as a separate process that includes a combination of task, step and specific

procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal

and ongoing.

DATA COLLECTION:-

To obtain the necessary information pertaining to the study, questionnaires were prepared.

While preparing the questionnaires the objectives of the study were kept in mind. Special care

was taken that the questions do not lack simplicity and clarity. The questions were arranged in

a proper sequence so that there was continuity in the interview. The questions framed were

mostly closed ended. These were in order to obtain the primary source of data. The secondary

sources of data were Internet search magazines and the websites of the wines.

PRIMARY DATA

New data gathered to help solve the problem at hand. As compared to secondary data which is

previously gathered data. An example is information gathered by a questionnaire. Qualitative

or quantitative data that are newly collected in the course of research, Consists of original

information that comes from people and includes information gathered from surveys, focus

groups, independent observations and test results. This is contrasted to secondary data which

entails the use of data gathered by someone other than the researcher information that is

obtained directly from first-hand sources by means of surveys, observation or experimentation

Primary data is basically collected by getting questionnaire filled by the respondents.

Collect primary data by Personal investigation

Observation method

Questionnaire methods

SECONDARY DATA

Information that already exists somewhere, have been collected for another purpose, sources

include census reports, trade publications, and subscription services. Data that have already

been collected and published for another research project called secondary data. There are two

types of secondary data: internal and external secondary data. Information compiled inside or


outside the organization for some purpose other than the current investigation. Data that

already have been collected for some purpose other than the current study. Secondary data are

collect from websites and journals.

RESPONDENTS: Customers visiting wine stores in vashi, powai and malad.

SAMPLING PLAN The sampling plan calls for three decisions.

A) Sampling Unit: I have completed my survey in Mumbai (Vashi, Powai and Malad)

B) Sample Size: The selection of 100 respondents. The sample was drawn from daily

customers. The selection of the respondent was done on the basis of simple random sampling.

C) Contact methods: I have conducted the respondent through personal interviews.

SAMPLING TECHNIQUE A simple random sample is a group of subjects chosen from a larger group of population.

Each subject from the population is chosen randomly and entirely by chance, such that each

subject has the same probability of being chosen at any stage during the sampling process.

SURVEY STRATEGY

Personal interview method was followed to conduct the survey & collection of the data

because:-

Time was limited and this method was accurate, sure and quick. It eliminates the chances of

non-responses. On the spot clarification could be given if necessary.


DATA ANALYSIS

In research process researchers generally use statistical tools viz. Averages (mean, median,

and mode), dispersion, percentages etc. Here researcher has used percentage method to

analyze the data. Formula to calculate the percentage is shown below

X = (Y/ Z) x 100

Or

Total no. of responses/total no. of respondent*100

Where X= % of people under certain category

Y= number of response

Z= total number of people studied

Analysis of data is a process of inspecting, transforming, and modeling data with the goal of

highlighting useful information, suggesting conclusions, and supporting decision making.

Data analysis has multiple facets and approaches, encompassing diverse techniques under a

variety of names, in different business, science, and social science domains.

We will use conjoint analysis to analyze the data collected. Conjoint analysis is statistical

technique used in market research, how retailers value different features which sales particular

product or service.

The objective of conjoint analysis is to determine what combination of a limited number of

attributes is most influential on respondent‘s choice and decision making. A controlled set of

potential products and services is shown to respondents and by analyzing how they make

preferences between these products; the implicit valuation of the individual element making

up the product and service can be determined valuations. These implicit valuations can be

used to create market model that estimate market share revenue and even profitability of new

design.


ANALYSIS AND INTERPRETATION

Age (Years)

Age 18-24 25-30 31-35 36-40 ABOVE 40

RESULT 18 40 24 12 6

SOURCE: Data collected through questionnaire.

Interpretation:-

From the total respondent 40% people of 25-30 age group consume more wine after that 24% consumed

by 31-35 age group. Still 18% by 18-24 age group, 12% by 36-40, and 6% is consumed by above 40,

that‘s why it is suggested that wine manufacturer and shopkeeper must be targeting those customers who

lie in between 25-35.

18%

40%

24%

12%

6%

AGE

18-24

25-30

31-35

35-40

ABOVE 40


Gender:

GENDER MALE FEMALE

RESULT 81 19


Interpretation:-

From the total size of sample, researcher found that 81% of male customers like the wine and only 19%

of female customers like the wine. So this chart also shows that considering all the customers, wine

manufacturer must focus on factors which will positively affect the consideration of the female

customers.

81%

19%

GENDER

MALE

FEMALE


Income Group (lac)

INCOME

GOROUP

BELOW 1 LAC 1-2 3-4 5-6 ABOVE 7

RESULT 12 15 43 12 18


Interpretation:-

From the 100 respondent 43% people are having income 3-4 lac, 18% people having income more than 7

lac, other groups are 1-2 lac - 15%, 5-6lac – 12%, and below 1 lakh 12%. So it is suggested that wine

producer must be focused on those people who having income in between 3-4lac.

Occupation:..................

OCCUPATION GOVT. JOB STUDENT PRIVATE

JOB

BUSSINESS

MAN

HOUSE

WIFE

OTHER..

RESULT 11 12 51 26 0 0

12%15%

43%

12%

18%

INCOME GROUP

BELOW I LAC 1-2 3-4 5-6 ABOVE 7



Interpretation:-

In above pie chart shows that 51% customers of private job consume the wine most, 26% of those having

own business consume wine. Other 12% are students and 11% have a govt. job those consume the wine.

Therefore, wine manufacturers must focus on customers in private jobs and entrepreneurs.

According to you why people prefer wine?

11%

12%

51%

26%

OCCUPATION

GOVT JOB STUDENT PRIVATE JOB BUSSINESS MAN

HEALTH

PURPOSE

FOR STATUS FOR ENJOYMENT JUST

EXEPERIMENT

ANY OTHER

0 15 69 8 0



Interpretation:-

From the total sample of size which is taken by researcher 67% of respondents prefer wine for

enjoyment. 15% use wine as status symbol, 10% health purpose and 8% respondent say that they use

wine only for experiment. So it is suggested that if any wine manufacturer wants to advertise his wine

than it must be basis on the theme of enjoyment. Moreover the health consideration can also be built

simultaneously, in order to attract more customers to this industry.

You are most likely to buy wine because……?

Friend‘s

recommendation

magazine/paper

advertisement

Word of mouth Your own

preference

Any Other

26 0 18 56 0

10%

15%

67%

8%

Purpose

HEALTH PURPOSE FOR STATUS FOR ENJOYMENT JUST EXPERIMENT



Interpretation:-

From the total size of respondents 53% of respondent like to buy wine because of their own preference.

25% respondent likes wine because they are recommended by friends of them and 18% people are like to

buy wine because they heard about wine from the peoples and 4% because they get knowledge about

wine from internet.

On what occasion do you prefer wine most?

Parties Festivals

Outing Other

70 14 16 0

25

0

18

53

4

PEOPLE PREFER WINE BECOZ



Interpretation:-

On the basis of this graph form the total respondent 70% respondent says that they prefer wine during

parties, 14% say that they prefer wine on festivals other 16% use wine when they are outside from home

or while travelling.

Is it easy to find convenient location for purchasing wine?

Yes No

64 36

0

10

20

30

40

50

60

70

PARTIESFESTIVALS

OUTINGOTHEER

OCCATION ON PEOPLE PREFER WINE

OCCATION ON PEOPLE PREFER WINE



Interpretation:-

With this question researcher want to know that whether the customer find their preferred wines easily or

not, 64% of respondent says YES that wine shops are easily available, but 36% respondent say that it is

not easy to find convenient location for purchasing wine.

Where do you prefer to have wine?

Restaurant at home Bar other {please specify}

17 20 55 8 (OUT SIDE)

YES64%

NO36%

convenient location for purchasing wine


SOURCE: Data collected through questionnaire

Interpretation: This question clarifies that where people prefer the wine. From the total size of sampling, 55%

respondent prefers wine in bar, 17% in restaurant, 20% at home and 8% prefer wine outside. So on the basis

of result we can say that here is an opportunity to open a wine bar at different places.

What do You prefer to have with wine?

Snacks Food-Veg./Non-Veg. Salad Other.........

34 0/32 34 0

1720

55

8

RESTAURANT AT HOME BAR OTHER...

Where do you prefer to have wine



Interpretation:-

Chart shows that 68% of respondent use wine with snacks and salad equally. Other 32% likes wine with non-

veg. So this is useful finding for those who wants to open bars and restaurants.

When do you normally use wine?

Midday Evening Night Morning

0 68 32 0

0

5

10

15

20

25

30

35

SNACKS VEG/NON-VEG SALAD 0THER



Interpretation:- According to this chart 68% people use wine in evening and 32% people use wine at night else

morning and midday any tourist not prefer the win. It mean that more people prefer wine evening and night,

so it is useful result for those who want or who have already bar and restaurants.

Name the brands of wine of your choice?(right more than one)

Sula Grover Vintage Indage N.D. Wines

43 38 32 24 14

0

10

20

30

40

50

60

70

MIDDAY EVENING NIGHT MORNING



Interpretation:-

In this question researcher wanted to know that are the customers aware about the brand name of the

wines or not, but researcher see that most of the people are not aware about the wine brand. Only 43

respondents says that they prefer sula vineyards, 38 write the name of grover, 24 indage and 14 says N.D.

Wines. These all wines are under the red wine categories than it is found that red wine are more popular

compared to white wines.

0

5

10

15

20

25

30

35

40

45

SULA GROVER

VINTAGE

INDAGE N.D. WINES

BRAND NAME OF YOUR CHOICE 43 38 32 24 14

BRAND NAME OF YOUR CHOICE


Are you aware with the various flavors of fruit wine available in market?

Yes No

84 16


Interpretation:-

In this question respondent have two options yes or no, this question is helpful to know about that

customers are aware about the wine flavor or not, but researcher found that 84% of respondent says YES

that they are aware with the various flavor of the wine and only 16% says that they are not aware about

various flavor of wine.

84%

16%

YES NO


Which flavor of fruit wine do you like the most or will prefer?(Write more than one).


Interpretation:-

In question number 15 we ask that respondent are aware about flavor or not, in this question researcher

know that about which flavor they are aware. As researcher can see in the chart most of the people likes

flavor of black grapes-90%, white grapes-88%, apple wine-48%, plum wine-8%, strawberry wine-4%,

apricot wine-2%, cherry wine 2%, so more red and white grapes should be growing for produce more red

and white wine because these wine are liked by most customers.

0

10

20

30

40

50

60

70

80

90

Black

grap

es

White

grap

es

Apple

wi

ne

Apricot

wine

Peach

win

e

Plum

wi

ne

Kiwi

win

e

Strawberry

wine

Cherry

wine

Other

{plea

se

specif

y}

90 8 48 2 0 8 0 4 2 0


How important are the following factors for purchasing wine? Please tick (√)

Factor Very less

important

Less important No influence Important Very

important

Flavor 24 76

Price 4 22 64 10

Good

packaging

6 16 68 10

Advertising 6 30 52 12

Brand name 24 50 26

Promotion

schemes/

discount

14 48 38



Interpretation:-

Flavor: - from hundred respondent 76% says that the flavor is very important from them and 24% say

flavor is important,

Price:- price are important says by 64% respondent from the whole sample size, no influence tick by

22% respondent, very important for 10% and less important for 4% respondent.

Good packaging: - good packaging is important says by 68% respondent, for 16% respondents have no

influence of packaging. Good packaging is very important says by 10% and 6% have very less important.

Advertising: - 52% respondent says that advertising is important for the promotion of the wine and 30%

have no influence for advertising. 10%says that advertising is very important for promotion and general

awareness about wine and other 6% give very less important.

Brand name: - brand name is the name, symbol, sign, or design and the combination of them. 50% of

respondent says that brand name is important for them, 26% says it is very important and 24% says that

advertising have no influence for them.

01020304050607080

FACTOR BEHIND PURCHSUNG WINE

VERY LESS IMPORTANT

LESS IMPORTANT

NO INFLUENCE

IMPORTANT

VERY IMPORTANT


Promotion schemes/ discount: - 48% respondent response is that promotional schemes and discount is

important, 38% respondent say that it is very important and 14% says that they are not influence by the

advertising.

Any recommendations and suggestion you want to give for improving wine

MANY OF SUGGETION AND RECOMMENDATION GIVEN BY RESPONDENT....

Some of the respondent suggested that price is very high and it should be low with given quality.

Special wine bars should be opened.

Some says that more alcohol should be added in wines.

More advertising and promotional activities are required.

More wine shops are required to open.


CONCLUSION

People age between 25-30 uses more wine, other big percentage of wine usage lies between 31-35. After

study, researcher conclude that only 19% female customers and 89% of male use wine. Most of the

customers use wine for enjoyment and some of use it as status symbol. Behind the use of wine some

respondents said that they have their own preference, some said that they are recommended by the friends

and word of mouth. But some customers also advocated the use of internet to get the information about

the wine, so here is some opportunity for advertising and promotional activities through internet. Seventy

percent customers say that they like wine in parties, so here is a good indication for those who want to

open new bars and pubs in Mumbai. Most of the customers are not aware about brands of wine, so there

must be some efforts undertaken to create effective brand awareness, for these activities wine

manufacturer must be supported by the government.

Recommendations and Suggestions

This study is focused on the customers‘ preferences regarding wine. It is found that wine is mostly

consumed by people of age between 25- 35 age group. The consumers are more inclined towards the

quality of wine. Thus it is recommended that companies should focus on improvement and maintenance of

quality and variety of quality. Other factors like packaging, branding and promotional schemes are

affecting the purchase of wine. Thus it is important to provide better quality of packaging along with

advertisement and other promotional schemes. It is clear from the study that black grapes wine is liked by

most of the consumers, followed by white grapes and apple wine. So it is logical to produce these wines

more. State governments should provide support for wine manufacturers and its raw material (agricultural

products) producers. More outlets should be opened for only wine. Also the interstate wine business

should be supported by centre government and state government.


APPENDIX

BIBLIOGRAPHY

Kothari C.R.1 (2008), ‗Research Methodology‘, New age International, New Delhi.

Green Pant E & Donald2 (2002), ‗Marketing Management‘, Prentice Publication Co, New Delhi.

Cooper, D. and Schindler3, p. (2007), ‗Business Research Methods‘, McGraw Hill Companies, New Delhi.

Strategy formulation and implementation for the wine division of ADP Industries Corporation, by Aaron

A. Palileo.

Gupta S.P., Gupta4 M.P. 2007 Business Statistics, New Delhi; Sultan Chand & Sons

Kotler, Philip5 2001, Marketing Management, analysis planning control. 10

th edition New

Allhoff, F. (Ed.)5 (2008) Wine and Philosophy Wiley-Blackwell

Thomas, A.6 (2000) ―Elements Influencing Wine Purchasing: A New Zealand View‖. International Journal of

Wine Marketing. 12.2.

SEARCH ENGINE:

www.google.com

Web sites

American Journal of Clinical Nutrition, Vol. 76, No. 2, 466-472, August 2002

© 2002 American Society for Clinical Nutrition

http://www.ajcn.org/cgi/content/full/76/2/466

Wine preference may reveal aspects of your personality, March 24, 2010 by douglasgreen

http://douglasgreen.wordpress.com/2010/05/24/wine-drinkers-tend-to-have-a-healthier-lifestyle/

www.winespectator.com British Psychological Society Magazine ‗The Psychologist‘.

http://www.winepsych.com/?page_id=96

Drug Alcohol Depend. 2005 Jun 1;78(3):339-44. Epub 2005 Jan 15., Wine preference and related health

determinants in a U.S. national sample of young adults

http://www.ncbi.nlm.nih.gov/pubmed/15893165

http://www.google.com/

http://www.ajcn.org/cgi/content/full/76/2/466

http://douglasgreen.wordpress.com/author/douglasgreen/

http://douglasgreen.wordpress.com/2010/05/24/wine-drinkers-tend-to-have-a-healthier-lifestyle/

http://www.winespectator.com/webfeature/show/id/41383

http://www.winepsych.com/?page_id=96

http://www.ncbi.nlm.nih.gov/pubmed/15893165


Indian Wine Industry Forecast to 2012, Publish Date: Nov, 2009, Copyright © 2010, RNCOS, 2002-2010

http://www.rncos.com/Report/IM225_toc.htm

india wine industry forcast 2012- free-press-release.com

http://www.free-press-release.com/news-indian-wine-industry-forecast-to-2012-1268221776.html

A Profile of the Wine Industry in India

http://www.chillibreeze.com/articles_various/Wine-industry.asp

Non-Alcoholic Wines: Another Way to Enjoy Wine

http://www.tasting-wine.com/articles/wine-types/non-alcoholic-wines.php

Best of Indian Wines: Top 10 Indian Red Wines, by: Noreen | last updated: April 08, 2009

http://www.indiamarks.com/guide/Best-of-Indian-Wines-Top-10-Indian-Red-Wines/9117/

Other important sites.

http://www.winepreferences.com/project/project.html

http://en.wikipedia.org/wiki/Wine

http://www.winelit.slsa.sa.gov.au/winelore.htm

http://www.rncos.com/Report/IM225_toc.htm

http://www.free-press-release.com/news-indian-wine-industry-forecast-to-2012-1268221776.html

http://www.chillibreeze.com/articles_various/Wine-industry.asp

http://www.tasting-wine.com/articles/wine-types/non-alcoholic-wines.php

http://www.indiamarks.com/all-guides/Noreen/165

http://www.indiamarks.com/guide/Best-of-Indian-Wines-Top-10-Indian-Red-Wines/9117/

http://www.winepreferences.com/project/project.html

http://en.wikipedia.org/wiki/Wine

http://www.winelit.slsa.sa.gov.au/winelore.htm


QUESTIONNAIRE ―Information collected through this questionnaire will be used for research work only.‖

[Please Tick (√) Your Choice(s)]

1.

Name……………………………………………………………………………………………….………………

…………………....

2. Age (Years) 18-24 25-30 31-35 36-40 above 40

3. Gender: Male Female

4. Income Group (lac) below1lac 1-2 3-4 5-6 above7

5. Occupation:

Government Job Student

Private Job Business Man

House Wife Other [Please Specify]………………….

6. According to you why people prefer wine?

Health purpose for status

For Enjoyment Just experiment

Any Other

…………………………………………………………………………………………………….

7. you are most likely to buy wine because……?

Friend‘s recommendation magazine/paper advertisement

Word of mouth your own preference

Any Other …………………………………………………………………………………………………….

8. on what occasion do you prefer wine most?

Parties‘ festival

Outing Other {Please specify}……………….

9. Is it easy to find convenient location for purchasing wine?

Yes No


10. Where do you prefer to have wine?

Restaurant at home

Bar Other {please

specify}……………………………………………………………

11. What do You prefer to have with wine?

Snacks Food (veg. non-veg.)

Salad

Other {please specify}…………………………..

12. When do you normally use wine?

Midday Evening

Night Morning

13. Name the brands of wine of your choice?(write more than one)

1. ………………………………………

2. …………………………………….

3. ………………………………………

4.

…………………………………………....

4. …………………………………………

…

5. ......................................................

14. Are you aware with the various flavors of fruit wine available in market?

Yes No

15. Which flavor of fruit wine do you like the most or will prefer?(tick(√) more than one)

Black grapes White grapes Apple wine

Apricot wine Peach wine Plum wine

Kiwi wine Strawberry wine Cherry wine

Other {please

specify}……………………………………………………………………………………………

16. How important are the following factors for purchasing wine? Please tick (√)


17. Any recommendations and suggestion you want to give for improving

wine……………………………………………………………………………………………………………

…………………………………………………………………………………………………………………

…………………………………………………………………………….................

Thank you for your time and patience

Factor Very less

important

Less important No influence Important Very

important

Flavor

Price

Good

packaging

Advertising

Brand

name

Promotion

schemes/

discount

MRP - Wine Industry (09BS0002294) With Questionnaire

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