Australian wine producers hoping to tap 'immense' but complex Indian market

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After the collapse of the Chinese market due to trade disputes and soaring tariffs, a free trade agreement with India is an exciting proposition for Australian wine exporters.

Another producer who sees potential in India is Guy Adams from Brothers In Arms winery at Langhorne Creek, SA.After attending a recent international wine trade fair in Mumbai with other South Australian producers, Mr Adams planned to start exporting to India next year and believed it would be a more stable market than China."I think it will be more of a classic market where it will be a slow growth, but that growth will be measured," he said.

While Mr Adams said India had a similar business mindset to Australia, there were also some significant and costly hurdles for producers taking the plunge.Combined with state taxes, that can make Australian wine eight-to-10 times more expensive in India."If you go out to a really fancy restaurant, it's not unusual to be charged about $60 for a glass of Australian wine, whereas a cocktail might cost you $20," Ms Triggs said.

"So apart from the fact you've got different regulations at a state level, you've got different labelling requirements at a state level, you have different distribution arrangements at a state level," Ms Triggs said."Promotion of alcohol is prohibited federally, so your promotional strategy has to be very, very strategic."So yeah, it's an extremely difficult market to crack.

While some producers have written off the Indian market as too difficult, the Australian industry says the time is right to give it another look.

 

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Lol they can’t feed their poor but we going to sell them our wine. Which by the way is grown there and exported back to oz.

I would have thought that in India they would have been more focused on clean water and living conditions rather than wine but meh...

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