THE Indian subcontinent, and India in particular, has become a new market for Western Australian wines thanks to its booming population and burgeoning middle class.
THE Indian subcontinent, and India in particular, has become a new market for Western Australian wines thanks to its booming population and burgeoning middle class.
The domestic Indian market has traditionally been dominated by beer and spirits. But with a growing population and the increasing popularity of wine among the middle and upper classes, opportunities are presenting themselves for WA wineries.
Austrade's New Dehli-based trade commissioner, Michael Carter, said the only Australian wine producers active in the Indian market a few years ago were from the eastern states who sold at the high volume, low-price end of the market, but that this was changing.
"Now what we're seeing as the consumer becomes more discerning ... and has greater disposable income, is that they're looking for a bit of quality and that's provided greater opportunity for Western Australia," Mr Carter told WA Business News.
Mr Carter is encouraged that some well-known, well-respected WA wineries and labels - including Leeuwin Estate, Cape Mentelle, Cullen and Howling Wolves - are making headway in India.
Howling Wolves director and part-owner, Damien Knowles planted a 30-hectare vineyard of Margaret River cuttings near Mumbai in 2007 to service future demands of the domestic market in a 50-50 joint venture with local distilling company, Brihans.
"When I initially went there four years ago, you'd go to a good restaurant and you'd see predominantly whiskey tumblers on the table," Mr Knowles said.
"Now there are wine glasses on the table, so there's definitely a surge in wine drinkers and drinking wine, and certainly drinking better quality wine."
Mr Knowles currently exports about four containers (or 40,000 litres) of Margaret River wine to the region each year. And with wine consumption growing at 40 per cent per year, he plans to build a 500-tonne winery and processing facility in northern India to cater to this growing market.
"We anticipate the winery will start early next year, ready for the first real vintage in 2011," he said.
This local production arm will keep India's hefty import taxes, up to 250 per cent in some states, at bay.
"The investment for the winery will cost us up to $1 million, and the vineyards, just the establishment has cost us about $250,000-300,000 without the land, which foreigners aren't allowed to own," Mr Knowles said.
"We'll probably produce up to 25,000 cases of wine from the Indian vineyard and winery and it will all be sold domestically; it may go to a few other small markets but mostly it'll be sold domestically."
A group of international wine buyers from the sub-continent and its surrounding regions will visit WA this week to source wine for major department stores, shops and restaurants.
