Costliest Indian wine ferments profits

When the husband-wife duo of Yatin and Kiran Patil inherited a 200-acre grape farm, they decided to enter the wine business and position the brand at the top of the price pyramid.

Vintage Wines' brand, Reveilo, was launched in 2006 from its winery in Nashik valley and is currently the most expensive wine brand in India.

It has helped that wine's demand is not price-sensitive; it is also akin to an aspiration product. Thus, the company has been able to book profits this year and its turnover has tripled to Rs 3 crore (Rs 30 million) from Rs 1 crore (Rs 10 million) last year.

"We found that although there were many imported and domestic wines available in the market, there were no wines in the super premium segment. Hence, we decided to launch Italian wine varieties made from Indian grapes in India," says Yatin Patil, director, Vintage Wines.

The size of the wine market in India is 8.1 million litres, of which 3.6 million litres are premium wine.

The company hopes to ride on the 30 per cent growth in the annual wine consumption in India, much higher than the 10 per cent in the rest of the world.

Vintage Wines sowed the first grape crop in 2001 and reaped the first crush in 2005. Reveilo has products in three price brackets: regular wines in the range of Rs 500 to Rs 745, late harvest at Rs 845 and premium reserves priced between Rs 1,045 and Rs 1,345. There are wines in the Indian market whose prices begin at Rs 180.

The regular Reveilo range includes Chenin Blanc, Syrah, Chardonnay, Sauvignon Blanc and Cabernet.

Sauvignon and the reserve range (Chardonnay, Syrah & CS) are aged in European oak for nine to 11 months prior to bottling. Its most recent addition to the portfolio, late harvest, is a sweet dessert wine named Chenin Blanc.

"To ensure good quality, we followed a policy of consistency. We reduced the yield per acre and maintained it at that level, since 80 per cent of the taste of the wine depends on how good the grapes are. We did not have expertise in making wines, so we signed a technical agreement with the Italian group, Enofly, to guide us," said Patil.

With the intention of creating an international style with an Indian character, the company employed Lowe to design the packaging. It imported bottles from Italy and corks from Belgium.

"We have been able to establish a presence in the fine dining circuit in India in spite of the presence of several lesser-priced imported wines," said Kiran Patil, director, sales and marketing.

Vintage Wines competes with other domestic wine makers, mainly the Chougule family promoted Chateau Indage, founded in 1984, in the mid-price segment.

Since its products are aimed at circulation in fine dining restaurants and five-star hotels, Vintage Wines has kept uniform pricing across states, letting the margin vary. Liqour prices vary due to different duties across states.

Currently, Reveilo wines are available in Mumbai and Bangalore. It is now planning to spread to Delhi, Kolkata, Goa and Jaipur in the next financial year.

The company is now trying to expand. Its 32,000 square feet winery has a capacity to produce 1 million bottles but is currently manufacturing 100,000 bottles a year. It is planning to scale up production by three times in the next couple of years.