Lower Excise Duty Boosts India’s Thriving Wine Culture To New Heights

The India Wine Awards 2023, now in its fifth edition, recently concluded with an extravagant celebration of the finest wines in the country. Organized by the Sonal Holland Wine Academy in collaboration with ProWine, this prestigious event showcased 219 exceptional wines across various categories, carefully selected from an impressive list of 460 wine and sake nominations.

Recent statistics reveal a significant surge in wine consumption in India. With approximately 10 million regular wine drinkers, the country experienced a remarkable 29% increase in wine consumption in 2022 alone. Furthermore, an India Wine Insider (IWI) report estimates India’s wine market value to be at an impressive $238 million, Forbes said in a report in October 2023.

Leading the way in recognizing this trend is Sonal C Holland, India’s first Master of Wine. She has successfully established the Sonal Holland Wine Academy in India, marking her profound influence on the Indian wine landscape.

The grand event at the Jio World Convention Centre, marked the largest blind-tasting competition of both domestic and international wines ever seen in India. A distinguished panel of 20 expert jury members meticulously evaluated each wine, employing a 100-point scoring system to ensure the winners accurately represented the preferences of Indian consumers.

In a remarkable display of excellence, 79 wines clinched the coveted Gold category, while 110 wines secured the Silver accolade. From this impressive lineup, the wine with the highest score in each category earned the prestigious title of “Best in Show.”

In an exciting addition to this year’s awards, sake was introduced as a new category, acknowledging its growing popularity in the Indian market. The judging process witnessed intense deliberations, with some categories experiencing two or three-way ties, showcasing the tough competition among the participants.

The Winners’ Night, a glamorous affair, brought together 600 prominent figures from the wine industry, including luminaries, hospitality leaders, representatives from global trade councils, and winemakers from around the world. The highlight of the evening was the recognition of Rajeev Samant, the founder and CEO of Sula Vineyards, who has played an instrumental role in shaping the Indian wine industry. Samant received the esteemed ‘Indian Wine Industry Leader and Champion Award,’ presented to him by Sonal C Holland, the founder and chairperson of India Wine Awards.

“As the first and only Master of Wine in India, I’ve had the opportunity to leverage my knowledge and global wine market insights to launch initiatives that align with international standards. I’m delighted to have contributed significantly to the growth of India’s wine industry, which is now the third largest alcohol beverage market worldwide and the fastest-growing one for wine,” stated Sonal.

Apart from an increase in consumption and knowledge, India has witnessed a surge in wine imports. A significant contributing factor has been the reduction in excise duty taxes on imported alcohol, which saw a decrease from 300% to 150% in 2021. Trade agreements with countries like Australia have further lowered import taxes on wine, from 150% to 75%, making imported wines more affordable.

According to Sonal, “Wines from Australia, Chile, Italy, and France are among the top four destinations imported into India. However, wines from New World countries like the U.S. are likely to gain popularity in years to come due to competitive pricing strategies and experiential marketing efforts to gain brand recall and loyalty among Indian consumers.”

India boasts its own flourishing wine industry, with a majority of wineries situated in and around Nashik, Maharashtra. The region’s altitude of 565 meters (1853 feet) creates a unique climate that enhances wine grape quality. The warm, sunny days result in high sugar and tannin concentrations, while cool nights preserve grape acidity.

The largest player in the Indian wine scene is Sula Vineyards, which not only serves the Indian market but also exports its products globally. Other significant contributors include Grover Zampa Vineyards and Fratelli Wines. International wineries like Chandon-India, a prominent French sparkling wine producer, have also established operations in India.

Financial projections for the Indian wine market are optimistic, with an expected 10% compounded annual growth rate (CAGR) in volumes between 2022 and 2027.

Sonal expresses high hopes for the future of the Indian wine industry, stating, “Our wine consumption is on the rise, and so is the thirst for wine knowledge. Wine is now a symbol of success, sophistication, and romance in India, establishing itself as a mainstream beverage in the country.” (IPA Service)