Wines now mainstream in India: Moet Hennessy – Newz9

NEW DELHI: Primarily whiskey drinkers, Indians are now more and more taking to wines and different spirits too. The market right here is seeing a shift in the direction of premiumisation, which Moet Hennessy India – part of the world’s largest luxurious group Louis Vuitton Moet Hennessy – views as an enormous alternative to develop right here. And as soon as in-the-works free commerce agreements (FTAs) are signed with the UK and extra international locations, the obligation construction on overseas liquor will make it extra inexpensive in India, giving demand an additional fillip, Ipsita Das, Moet Hennessy India MD, advised TOI.
“Indians used to drink straight ups earlier whiskey on the rocks, or just a gin and tonic. Now the format of consumption is changing here. Wines and spirits have become very mainstream today. The story of premiumisation is here to stay.” That is an “advantage for us as Moet Hennessy is the only pure play luxury player in this segment, and premiumisation has given us a boost in the last three years. On a smaller scale, we’ve also seen tequilas gain popularity,” she added.

However, steep pricing as a consequence of excessive taxes in India stays a difficulty for overseas liquor firms. “Wines and spirits in India is a very complex topic. It is a state subject and doesn’t come under GST. Every state has its own regulations and policies which keep changing. That clearly adds to the lack of ease of doing business in this segment,” she added.
“When it involves obligation, India levies a 150% customized obligation which is without doubt one of the highest in the world. Then there are state taxes, which additionally differ from state to state. With all this taxation, there’s little or no parity which makes it troublesome for the customers as a result of they purchase a bottle of Moet & Chandon in Europe for 45 euros But the identical prices 100 euros in India, plus or minus 10%, relying on which state you might be consuming it. in,” she said. With the Indian consumer being very well-travelled now, it is not easy for companies to “set expectations” despite the fact that the former knows the same is due to duty and taxes here.
“There have been some very energetic FTA conversations happening, corresponding to with the UK. We actually hope that an FTA will be capable to give some rest in India over time, which may actually increase consumption.” Das said.
Like Indian whiskey, made-in-India wines are also becoming increasingly popular. Moet Hennessy India makes both still and sparkling wines here under the name of Chandon. How are they doing? “Our Indian wines are doing very effectively,” Das mentioned.