Transcription

To be utilized in conjunction with primary section of“Comprehensive Study of the Indian Wine Market,” prepared forWine Institute by JBC International. For more information,contact James Gore at [email protected] I Street NW, Suite 916Washington, DC 20006www.jbcinternational.comPhone 202.463.8493COMPREHENSIVE STUDY OF THE INDIAN WINEMARKETREFERENCE GUIDE SECTIONTABLE OF CONTENTSINDIA WINE MARKET ANALYSIS1. SWOT1.1 SWOT chart552. Alcohol in Indian Culture2.1 Constitution2.2 Religion5563. Population, Demographics and Consumer Segmentation3.1 Potential Market3.2 Market Segmentation and Evaluation3.3 Population Geographical Concentration3.4 Age Segmentation3.5 Gender Segmentation3.6 Other Demographics – Income and Education3.7 Tastes, Preferences, and Presentation7789101011114. Geography4.1 Climate4.2 Climatic Conditions Impacting Grape Growing1212125. Availability and Price Structure of Wine5.1 Currency and Measurement Conversions5.2 Organized Retail5.3 Wineries/Tasting Rooms5.4 Hotels, Restaurants, and Specialty Shops13131316161

6. Marketing and Advertising6.1 Television6.2 Magazines6.3 Expos6.4 On-Site17202020207. Educational Institutions7.1 Clubs7.2 Websites181821INDIA WINE PROJECT SUPPLY CHAIN REPORT1. Current Situation in India222. Role of Supply Chain in Indian Organized Retail223. Refrigeration and Air Conditioning Equipment in India224. Road System and Transportation235. Ports of Entry236. Service Providers for Transport Logistics237. Cold Chains in India23INDIA REPORT: TRADE1.1 Import Procedures in India1.1.1 Nature of Import Procedures and Timeline1.1.2 Import Documents2424241.2 Quotas241.3 Customs1.3.1 Customs Valuation1.3.2 Customs Clearance1.3.3 Customs Dispute Resolution Mechanisms242425261.4 Import restrictions261.5 Inter State or Intra State Movement of Imported Wines262

1.5.1 Warehousing1.5.2 Interest1.5.3 Rate of Duty1.5.4 CIF & Assessable Value1.5.5 Nature of Customs Bonded Warehouses1.5.6 Security for Stocks in Private or Public Warehouses operatedPrivately1.5.7 Jurisdiction of Customs Office1.5.8 Movement of stocks beyond 40 kms1.5.9 Ex Bonding of Stocks1.5.10 State Excise1.5.11 Interstate Movement of Stocks1.5.12 Validity of TP1.5.13 General Practices1.5.14 Other Relevant Matters26262627272727272728282828281.6 Import Policy and Regulations1.6.1 Regulatory and compliance standards1.6.2 Registration and documentation1.6.3 Storage regulations1.6.4 SPS standards1.6.5 Winemaking Standards1.6.6 Maximum residue levels (MRLs)1.6.7 Wholesale and distribution licensing1.6.8 Brand and label registration1.6.9 Transport permit1.6.10 Other regulations1.6.11 Labeling requirements2929293030313131313232321.7 Intellectual Property Rights analysis332. Tax and Duty Structure332.1 Federal taxes and duties2.1.1 Customs Duties33332.2 State taxes and duties2.2.1 Specific Marketing Fees and Labeling Regulations for ImportedWine in Delhi2.2.2 Specific Marketing Fees and Labeling Regulations for ImportedWine in Maharastra (including Mumbai)3434343

2.2.3 Maharastra State Excise Policy2.2.4 Specific Marketing Fees and Labeling Regulations for ImportedWine in Karnataka (including Bangalore)35363. Trade Policy373.1 WTO3.1.1 Membership3.1.2 Doha development agenda3.1.3 Dispute DS360: India Aditional and Extra-Additional Duties onImports from the United States3737373.2 Bilateral Trade Agreements3.2.1 India-EU Strategic Partnership3.2.2 CECA between India and Singapore3.2.3 Framework Agreement with GCC States3.2.4 Framework Agreement with ASEAN3.2.5 Framework Agreement with Thailand3.2.6 Framework Agreement with Chile3.2.7 India-Nepal Trade Treaty3.2.8 India-China Trade Agreement3.2.9 India-Japan Trade Agreement3.2.10 India-Korea Trade Agreement3939394040404040404040374. Production, Distribution & Taxation on Bottled In Origin (BIO) &Domestic Wines in select markets414

Indian Wine Market Analysis1.1 SWOT chart StrengthsIndian wine consumption hasgrown 25-30% annually over a 5year period.Good climate for grape growingUrban population is increasing.Youth are craving an alternative tohard liquors and developing a morerefined taste.Wine is becoming more acceptableto women and youth.Opportunities100 million persons will be legallyallowed to drink alcohol (25 yrs.old) in the next 5 years.Supermarkets are emerging tosupport wine distributioninfrastructure.Domestic market with increasingdisposable income.Growing tourism industry. WeaknessesWine remains an elite taste.Wine is difficult to store in Indiadue to lack of cellars andrefrigeration.Less than 50 percent of thepopulation is legally old enough todrink (25 yrs. old).400 million persons are 18 yearsold or younger.Poor awareness of wine andinfrastructure.ThreatsThe Indian constitution discouragesalcohol consumption.Wine viewed as a “sin” by some.Indians still prefer whisky.Advertising for alcoholic beveragesis banned.Domestic wine production iscoddled by state governments.Summarized from many sources as cited in this report2. Alcohol in Indian CultureWine is one of the highest taxed products in India as it is considered a luxury, not anecessity. The use of wine is discouraged by Indian Constitution. The central governmentnormally declares the federal customs duties applicable to imports during the unionbudget held on the last week of February. Customs duties for most products havedeclined since the year 2000; however, taxation on alcohol has been an exception to thisdecline, and, as it is considered a negative product, the duty has actually increased to itscurrent rate of 150% ad valorem.2.1 ConstitutionMahatma Gandhi and Dr. Bhimaro Ambedkar, two leaders in the drafting of the Indianconstitution, were teetotalers in their day, but believed that it was the responsibility of thestates to regulate alcohol. Moreover, Article 47 of the Indian Constitution states that,“The State shall regard the raising of the level of nutrition and the standard of living of itspeople and the improvement of public health as among its primary duties and, in5

particular, the State shall endeavor to bring about prohibition of the consumption exceptfor medicinal purpose of intoxicating drinks and of drugs which are injurious to health”.Wine has traditionally been considered a type of liquor whereby the government morallyobligates itself to protect Indian citizens from its misuse. Methods of alcohol controlinclude: serving alcohol only at specific outlets or during specific hours; prohibitingalcohol in religious places, educational institutions and underage drinkers; and the officialage of legal alcohol consumption being established at 25 years old. Most Indian states,however, have not prohibited alcohol and some (e.g. Maharashtra) even facilitate winegrape growing and wineries as an important sector of agriculture.2.2 ReligionOver 800 million Indians, or about 80.5% of the country's population, are Hindu. Thenext-largest religious group is Islam, which makes up 13.4% of the population. Otherreligious groups include Christians (2.3%), Sikhs (1.9%), Buddhists (0.8%), Jains (0.4%),Zoroastrians(0.01%), Jews(0.0005%), Bahá'ís and others who’s percentages are notsignificant enough toinclude.1Muslim 13.4%Christian 2.3%Hindu 80.5%Sikh 1.9%Buddhist 0.8%Jains 0.4%ZoroastrianismJudiasmThe relationship between these religions and alcohol can be summarized as follows:Hinduism: Alcohol consumption is decided by the individual and how it fits in with theirpersonal way of life.Islam: In Islam, intoxication by alcoholic beverages is generally forbidden, but Alcoholis allowed to be used for medical and other purposes, for example industrial use. SeveralQur'anic verses and sayings of Muhammad prohibit the consumption of alcohol, anddealing with such a beverage.Christian: Christianity has historically had wine as a part of everyday life and also assubstance in holy rites and rituals. Many Christians take a moderate approach to alcoholconsumption and take care to avoid drunkenness as a form of sin, but delights in wine asa social staple. Some Christian sects have moved to complete abstinence from alcohol;however, the traditional view is most common among Christians worldwide.1Wikipedia: http://en.wikipedia.org/wiki/India.6

Sikh: The Sikh Code of Conduct states, "A Sikh must not take hemp, opium, liquor,tobacco, or any intoxicant." At the time of initiation, a Sikh vows not to use anyintoxicant. Drinking alcohol is forbidden for Sikhs.Buddhist: The Buddha was against any form of alcohol consumption, even inmoderation, because of the effect it has on the mind. Mindfulness is central to Buddhistphilosophy. This concept requires a constant awareness of changes occurring in the mindand body. Mindfulness enables the individual to react wisely to emotions and sensationswhen they arise. Alcohol distorts the mind and makes it impossible to practice this tenet.Jains: Intoxication is something to be avoided in Jainism because it relinquishes controlover ones body. Many Jains do not consume alcohol.Zoroastrianism: Many Zoroastrians drink alcohol. They have no prohibition.Judaism: Alcohol is only prohibited during the Passover. Alcohol is moderatelyconsumed by Jews.3. Population, Demographics and Consumer Segmentation3.1 Potential MarketThere has been much debate about the precise number of potential consumers in India’swine market. Major factors that hinder wine consumption are poverty, age restrictionsand specific state alcohol prohibition. About half of the Indian population meets theminimum drinking age of 25 years; however, that number is greatly increasing as theIndian population matures. This maturity creates an opportunity for younger generationsto acquire a taste for wine, breaking from a tradition of hard liquor. Although manyIndian religions encourage abstinence from alcohol, few have formally banned its use2.Three Indian states maintain prohibition laws and others have set strict regulatorymeasures on alcohol sales. The summation of wine consumers without these limitations isdemonstrated in the chart below.Population AspectTotal PopulationThose with No Religious ProhibitionThose of the Legal Drinking Age or OlderThose residing in States Allowing AlcoholConsumptionThose with Sufficient Wealth to AffordWine*Those listed above and have also beenEducated/Exposed to WinePotential Wine .1%This information was based on the 2001 Indian Census’ growth estimation for 20073.Number of 5328,138,54823,917,76624,000,0002Wikipedia, Islam: http://en.wikipedia.org/wiki/Islam#Etiquette and diet, Sikh info: www.info-sikh.com.Census information of India:http://www.censusindia.gov.in/Census Data 2001/Census data finder/C Series/Marital status by age and sex.htm;and, http://www.censusindia.gov.in/Census Data 2001/Census data finder/A-Z index/A-Z Index.html.37

The process of assigning a numerical value to the diverse components that may limitconsumption accounts for overlap by calculating in percentages. The estimated 24 millionpotential consumers figure agrees with other estimations made by Indian wine marketexperts, both local and international.*Refer to Section 2.7 Other Demographics – Income and Education3.2 Market Segmentation and EvaluationPopulation BreakdownIt is important to note that the majority of India’s population is rural. Most of India’s poorreside outside of developed areas. Large, densely populated cities; however, account formost of India’s middle and upper classes and therefore for the majority of wineconsumption in India.Population of 6,154Population in Selected Indian States with high consumption of 52,2461,347,66852,282,946Selected Indian Cities/Union TerritoriesNew 76,560,2425,742,0367,232,5554,993,796900,6358

3.3 Population Geographical ConcentrationIndia’s population is concentrated 4 specific areas: North – New Delhi, West – Mumbai,South – Bangalore and the southern peak, and East – Kolkata. Three of the areas whichhave the highest concentration of population border the coastline and have numerous seaports.9

3.4 Age Segmentation4The median age in India is about 25 years old, this demonstrates the fact that half of theIndian population is not yet old enough to drink, and one quarter of the population isunder 10 years old. In the coming years, 10 percent of the current population comes oflegal drinking age, bringing with them new views of wine which could influence themaway from hard liquors. The strength of India is in its youth who are familiarizingthemselves with the world beyond their borders.PopulationIndian Population by Age35-3940-4430-3425-2945-4950-54 55-5960-6465-6970-7475-7980 20-240-915-1910-14*The raised sections of the chart show age groups that have metthe minimum age for 3940-4445-4950-5455-5960-6465-6970-7475-7980 6,77919,806,95514,708,6448,270,078India has an estimated 22 births per 1000 people, equaling almost 25 million births peryear; roughly 1/10th of the U.S. population each year. Luckily the median age for Indianpeople is 25 which is also the legal age for alcohol consumption in India.3.5 Gender SegmentationIndian women are beginning to prefer wine as a more socially acceptable form ofdrinking for females. It is seen as more feminine to consume wine as opposed to the hardliquor that men are more traditionally seen consuming. Wine has a softer tone andconnotation which is seen as more acceptable to consume in view of the public.5However, the wine industry must also consider the male demographic when marketingtheir products. Men, and not women, typically shop for liquor because restrictionsprohibit the sale of alcohol in supermarkets or other convenience locations. Becausemales purchase the majority of alcohol products, it is prudent to focus on both men andwomen as the target demographic for U.S. hrough the wine hrough the wine glass rajeev.html.510

3.6 Other Demographics – Income and Education6IncomeThe gross national income (GNI) for India has risen to 800 per capita as recorded in2006. This number, however, is greatly skewed because of the outliers in both extremewealth and poverty.EducationThe education levels in India correlate with estimates for potential consumers. Those 24million who have attained college level degrees make up the majority of potential wineconsumers. The remaining 160 million or so who have finished secondary schoolcomplete the bulk of the rising middle class of India.Education levelLiterate but below secondarySecondary but below graduateTechnical diploma or certificate not equal to degreeGraduate and above other than technical degreeTechnical degree or diploma equal to post-graduate st-high school level educationTechnical diploma or certificate not equal to degreeGraduate and above other than technical degreeTechnical degree or diploma equal to post-graduate 1,97518,596,9283,314,25324,143,1563.7 Tastes, Preferences, and PresentationThe tastes and preferences of the Indian population err towards still wines, and morespecifically, table wines. Though a market exists for champagne and sparkling wines,these varieties sell at a much lesser rate than the still wines. In general, slightly sweetwines and the varietals of Sauvignon Blanc and Chenin Blanc are fairly popular and alsopair well with typical Indian dishes. Similarly, rose and blush have been projected asgood fits for the Indian market; however, the majority of sales have stayed on traditionalstill red and white wines. In regards to presentation, wine producers have two differentdemographics in the Indian market upon which to focus: the upper class and the generalconsumer. While the upper class prefers the classic presentation, i.e. real cork, full bottle6Census information of India:http://www.censusindia.gov.in/Census Data 2001/Census data finder/C Series/Marital status by age and sex.htm;11

size, and dry red and white wines, the growing consumer class in India gravitates towardsapproachable wine packaging, i.e. screw caps, half bottle sizes, and sweet wines17.4. Geography4.1 ClimateDue to India’s large size and varied topography, many different climates exist within thecountry. Geographic features such as the northern Himalayas or Thar Desert createmicro-climates, and hence, greatly impact wine in regards to grape growing, winemaking, and distribution.4.2 Climatic Conditions Impacting Grape Growing7Grapes are grown under a variety of soil and climatic conditions in three distinct agroclimatic zones, namely, sub-tropical, hot tropical and mild tropical climatic regions inIndia.Sub-tropical Region: This region covers the northwestern plains correspondingto 28 and 32 N latitude including Delhi; Meerut district of Uttar Pradesh; Hissarand Jind districts of Haryana; and Bhatinda, Ferozpur, Gurdaspur and Ludhianadistricts of Punjab. Vines undergo dormancy and bud break starts in the first weekof March while the rains arrive in the first week of June. Therefore, only 90-95days are available from the initiation of growth to harvest. Consequently,‘Perlette’ is the only early ripening variety grown in this region. Rain damage is aproblem with Thompson Seedless in this region. Single pruning and a singleharvest is the accepted practice here.Hot Tropical Region: This region covers Nasik, Sangli, Solapur, Pune, Satara,Latur and Osmanabad districts of Maharashtra; Hyderabad, Ranga Reddy,Mahbubnagar, Anantapur and Medak districts of Andhra Pradesh; and Bijapur,Bagalkot, Belgaum, Gulberga districts of northern Karnataka lying between 15 and 20 N latitude. This is the major viticulture region accounting for 70 percentof the area under grapes in the country. Vines do not undergo dormancy anddouble pruning and a single harvest is the general practice in this region.Maximum and minimum temperature is 42 C and 8 C, respectively. The majorproblems in this region are soil and water salinity and drought. Berry growth isimpaired and in certain locations pink blush sometimes develops on green berriesdue to temperatures that drop to a low of 8 C. Thompson Seedless and its clones(Tas-A-Ganesh, Sonaka), Anab-e-Shahi, Sharad Seedless and Flame Seedless arethe varieties grown in this region.Mild Tropical Region: An area covered by 10 and 15 N latitude includingBangalore and Kolar districts of Karnataka; Chittoor district of Andhra Pradeshand Coimbatore; and Madurai and Theni districts of Tamil Nadu fall in this7Folder F:\JBC Clients\India wine project\Marketing\Grape growing in .htm.12

region. Maximum temperatures in a year seldom exceed 36 C, while theminimum is about 12 C. Principal varieties are Bangalore Blue (Syn. Isabella),Anab-e-Shahi, Gulabi (Syn. Muscat Hamburg), and Bhokri. Thompson Seedlessis grown only with limited success. Except for Thompson Seedless, two crops areharvested in a year.5. Availability and Price Structure of Wine5.1 Currency and Measurement ConversionsIndian Currency – Rupee (Rs.)Large values of Indian rupees are counted in terms of thousands, lakh (100 thousand, indigits 100,000), crore (100 lakhs, in digits 10,000,000) and arawb (100 crore, in digits1,000,000,000). The terms Million or Billion are rarely used. ATMs usually give Rs. 100and Rs. 500 notes, but not Rs. 1000 notes. Therefore, Rs. 1000 notes are analogous to thehigher valued notes of the United States dollar and the euro. In most parts of India, therupee is known as the rupee, roopayi, rupaye, rubai or one of the other terms derivedfrom the Sanskrit rupyakam, raupya meaning silver; rupyakam meaning (coin) of silver.The modern rupee is subdivided into 100 paise or paisa for a singular coin. Frequently used coins include a 25, 50 paise, Rs. 1, Rs. 2, and Rs. 5. Rarely usedare the 5, 10, 20 paise coins. Frequently used banknotes include: Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, and Rs.500. Rarely used is the Rs. 10001 Rupee1 Dollar 0.025176 Dollars39.72 Rupees5.2 Organized RetailThe growth trend of the organized retail sector presents significant opportunitiesfor California agricultural exporters. Organized retail outlets provide a solidifieddistribution system for California wines exported to India. These retailers allow for atimely and streamlined flow of goods to the consumer, which translates into a moreattractive option for the U.S. wine industry.The retail sector in India is divided into two categories: unorganized and organizedretailing. Unorganized retailers or traditional retailers are small, independent, singleoutlet, family-owned operations, also known as kirana stores. Unorganized retailersrepresent approximately 99.2 percent of the food and grocery retail sector in2005/06.Organized retailers include cash and carry, discount, hypermarkets,supermarkets and convenience stores. Imported products are predominantlyavailable at organized retail chains and grocery stores that cater to high-end13

consumers in major urbanized cities, although some fresh fruits have limiteddistribution in independent shops and vendors.Organized retailers, specifically hypermarkets and supermarkets, offer the best potentialfor the sale of imported California products due to better infrastructure and distributionsystems. As organized retail expands, distribution opportunities for California productsare likely to grow. Currently, the organized sector represents only 0.8 percent of themarket; however, organized retail is expected to expand at a growth rate of 30 to 35percent each year. Although approximately 40 percent of the organized retailers arecurrently located in smaller cities, the most significant expansions in the modernretail sector are occurring in urban areas including Mumbai, Delhi, Pune, Hyderabad,Bangalore, Chennai, and Kolkata.Regional DifferencesIndia’s retail sector is highly segregated by geography. Historically, retailers wereprimarily located in Southern India; however, in recent years the Western and Northernareas of India have developed and more retailers have expanded their stores to these tworegions. California agricultural products are more likely to penetrate the more developedregions of India (South, West and North) where organized retailers are expanding andconsumers are more likely to know about imported offerings and more able to affordthem.Percentage of Indian Retail Stores by RegionSouth 56%Central .2%East 2.1%West 19.6%North 22.1%Southern India: Historically, most organized retail has been concentrated inSouthern India due to better distribution technology, cheaper real estate, and agreater degree of Western influence in the region. Importantly, the Southernregion offers more organized transportation systems and cold storagefacilities.This infrastructure provides reliable delivery and minimizes product deteriorationand damage. As a result, modern retail began here and it continues to be one ofthe leading regions for organized retail.14

Western India: Due to favorable consumer characteristics and higher incomes,many retail chains have recently expanded to Western and Northern India.Western India has the highest per capita income in India and the strongestconsumer product awareness. Residents in the West receive the highest level ofeducation and are well traveled (internationally) compared to other regions.Mumbai, one of the major cities and the financial capital of India, is located inWest India.Northern India: Northern India is another region influenced by Western culture.The growing population in Northern India has been a key factor in the significantgrowth of organized retailers in the region. The North is considered an emergingretail market for international brands and national retailers and is one of theleading regions in organized retailing. The capital of India, Delhi, is located inNorth India.Eastern India: The Eastern region of India is still highly underdevelopedand will not likely be a potential market for California products in the shortterm. The East has the lowest average per capita income (Rs. 10,315 or US 264)across India. Due to financial barriers, most consumers do not have the means topurchase imported products and shop almost exclusively in unorganized retailoutlets.The infrastructure available at the supermarkets and hypermarkets presents a viable pointof distribution for California produce. Supermarket stores typically have 3,000 to 6,000square feet of floor space and are usually located within 3 to 4 km (1.9 to 2.5 miles) fromconsumers’ residences. Supermarkets - such as Foodworld, Tinethra and Nilgiri’s - focuson weekly and monthly needs of consumers while hypermarkets and larger discountstores cater to consumers’ bulk shopping needs. Hypermarkets are large - 25,000 to100,000 square feet - and carry both food and non-food items in large packages. A few,key retail centers exist, such as Wal-Mart, Pantaloon Retail, and Big Bazaar18.Wal-Mart: Bharti Enterprises and Wal-Mart Stores have signed an agreement toestablish Bhart Wal-Mart Private Limited, a joint venture for wholesale cash-andcarry and back-end supply chain management operations in India, in line withGovernment of India guidelines. Under the agreement, Bharti and Wal-Mart willhold a 50-50 stake in Bharti Wal-Mart Private Limited. Start of the operations willbe by the end of 2007.8Pantaloon Retail: Pantaloon Retail (India) Limited, is India’s leading retailer thatoperates multiple retail formats in both the value and lifestyle segment of theIndian consumer marker. Headquartered in Mumbai (Bombay), the companyoperates over 5 million square feet of retail space, has over 450 stores across 40cities in India and employs over 18,000 people.989Source: WalMart: rce: http://www.pantaloon.com/companyinfo.htm15

Reliance Fresh and Shoprite Hyper are two major retail chains spreading acrossIndia.Big Bazaar: Big Bazaar is also a subsidiary of Pantaloon that has adopted Walmarts business model. They have food sections entitled “Food Basaar” whereWine will be sold.5.3 Wineries/Tasting roomsOn-premise sales occur at “outlets where consumers buy beverages for immediateconsumption at or near the point-of-sale19.” These locations typically involve hotels,restaurants, and specialty shops with wine tastings. On-premise locations are not onlyreadily accessible to the consumer, but they also incorporate the import tariffs and dutieswithin the price of the wine at the time of sale.5.4 Hotels, Restaurants, and Specialty ShopsPubs“Pubs” are still largely confined to Bangalore and Bombay. Pubs have begun to appearin Pune over the last two years as well as Delhi. Rajasthan has recently liberalized its onpremise sales and Punjab has allowed sales in department stores from April 2004.10HotelsWith India’s ever increasing tourist sector, the amount of people staying at Indian hotelsis also rising. In 2003, only about 10,000 hotels existed; by 2007, this number grew to20,000 hotels. Of these, the hotels that boast at least three stars have an average of 2restaurants per hotel. Due to their affluent clientele, such upper-class locations are likelycandidates to import various goods, including California wines. About 45% of theindustry wine volume sells through on-premise outlets, and mainly in 5 Star hotels. Thesetransactions all qualify as “duty free” due to the special drawing rights that hotels receivefor duty free wine against their foreign exchange earnings. According to the U.S. ForeignAgricultural Service, Indian luxury hotels allocate 40% - 60% of their liquor budget toimported alcoholic beverages. To put this number in context, food and beverage salescomprised 25% of hotel revenue in 2006. The major hotel chains in India are Taj Hotels,Oberoi Hotels, Ashok Group Hotels, and Leela Places and Resorts20.RestaurantsCurrently, Indian restaurants receive many of their products locally, and they only importcertain value-added goods. However, a large potential for importation exists due to trendsin consumption and spending. An estimated, annual growth rate of 7 to 8 percent in therestaurant market over the coming years results from the rising disposable incomes of theIndian population. Furthermore, India’s large, young adult population (20-34 years ofage) and increasingly popular trend of eating outside the home create opportunities forCalifornia wines in restaurants20.10The IWSR 2007 F:\JBC Clients\India wine project\Trade Reports16

Specialty ShopsThough not as prominent as restaurants or hotels, specialty shops provide an innovativeand effective method of exposure for California wines. These shops and wine bars comein different forms, such as Sula’s serene wine shop located at the winery itself or ChateauIndage’s many sheik wine bars located throughout India. While Sula’s takes a classicalapproach, other wine bars, such as those established by Chateau Indage, accommodatethe newer, younger wine consumers. For instance, Olive’s Kitchen and Bar or TheTasting Room in Mumbai serve celebrities and affluent, younger people alike. Outside ofthe wealthy demographic, companies also target people with less income. ChateauIndage, India’s largest wine producer, plans “on opening 1,000 casua

Christian 2.3% Muslim 13.4% The relationship between these religions and alcohol can be summarized as follows: Hinduism: Alcohol consumption is decided by the individual and how it fits in with their personal way of life. Islam: In Islam, intoxication by alcoholic beverages is generally forbidden, but Alcohol