HospitalityBiz India
Hotels FoodService Operations Ministry Associations Equipment Editorial HR Technology Technology Advisory Board Community
Follow us on Facebook Follow us on Twitter instagram
    Home > NewsTrack

Wineries to reduce crushing capacity, as wine sales goes down

Monday, January 11, 2021, 10:30 Hrs  [IST]

According to the Hindu, Wine sales have been affected by about 35 to 40 per cent in the country due to the Covid pandemic. Therefore, wineries will collectively reduce their crushing capacity by about 8,000 to 10,000 tonnes this year. On average, 25,000 tonnes of wine grapes are crushed in the country, said Jagdish Holkar, President, All-India Wine Producers’ Association.

Holkar, who is also the Chairman of Flamingo Wines, said that wine grape availability has also been affected by the extended monsoon. In 2020, pruning of grapevines was delayed, which has also resulted in delayed crushing of grapes this year. The area under wine grapes is about 1.25 to 1.50 lakh hectares this season, which is the same as that of last year. However, the yield would be less due to climatic conditions, he said.

Grapes for winemaking are primarily cultivated in Maharashtra, Karnataka, and a few districts in Madhya Pradesh. Farmers get INR 40 to INR 65 per kg for wine grapes, depending on the variety, quality, and diseases-free produce.

The grapes are also sourced based on their Brix scale, which determines the sugar level in grapes. It is a parameter to measure the alcohol content of grapes before they converted into wines.

Holkar said that wines from table grapes will not be made this year. Crushing of wine grapes will be given priority, and the season is expected to be complete by the final week of March. Those wineries that have entered contract farming will honour their contract with the farmers, but open market purchase will be minimal. Due to the lack of sales and uncertainty created by Covid, wineries still have a lot of unsold wines in the tanks. Some wineries may empty their tanks and pack the wines in bottles, but that will add to the inventory cost and overheads. However, this will not be reflected in the sales, he said.

Before the breakout of the pandemic, on average, four million cases of wine were sold per year in the country. A case contains 12 bottles of 750 ml each.

Wine expert and former chief winemaker for the United Spirits, Abhay Kewadkar, said that wine grape contracts will be fulfilled by wineries. A situation will not arise where the grapes will have to be thrown away by farmers having contracts for their produce.

However, those framers who have not entered into contracts with wineries but were waiting for the wine grapes prices to rise, may take a hit on their rates. The extended monsoon has affected the availability of wine grapes, but it will also enhance the quality of the grapes, he said.

Kewadkar, who is also the Managing Director of Tetrad Global Beverages, said that wineries will have to accommodate more unsold stocks, which will increase the inventory and interest costs. These twin factors will affect the profitability of wineries, he said.

Akalpit Prabhune, Managing Director and co-founder of Rhythm Winery, said that this year the winery will make less wine due to stagnant demand. Wine sales are heavily dependent on tourism, large hotels and fine dine restaurants, which are still recovering from pandemic-related restrictions. Wine consumption is also linked to foreign tourists arrivals, which is still not happening. The business projections of Rhythm has been revised downwards by about 8 to 10 per cent. The winery will have to make less wine this year, he said.

Wine grape-producing framer, Damodar Khandagale, from Rui village in Niphad taluka of Nashik district, said that he has been having a contract with a leading winery in Maharashtra since 2013. This year, due to Covid, the winery would be buying lesser grapes from his farm. The winery had informed him in advance that their wine tanks are full and therefore farmers have to reduce the output.

This year, Khandagale has about 18 acres of wine grapes in his vineyard and has been a wine grapes grower since 1998. He has planted Chenin Blanc and Shiraz varieties of wine grapes for which he will get INR 55 to INR 60 per kg from the winery.

Khandagale said that his agreement with the winery has a clause that every three years, 10 per cent procurement cost would be increased but this year the winery has said that due to Covid there would be no price increase but the produced would be purchased.

58-year-old farmer Laxman Jadhav from Pimpalgaon-Khamb village in Nashik district has a similar tale to narrate. This year, the winery has said that they will purchase lesser grapes and, therefore, farmers have reduced the production by changing the pruning techniques.

(Source: The Hindu)

Print News Email News Back
Bookmark to Add to NewsvineNewsvine Bookmark with Digg ItDigg
Add RSS to Add to Google Add to My Yahoo! Subscribe with Bloglines Subscribe
* Name :    
* Email :    
* Message :  
»  Moët Hennessy’s homegrown Sparkling Wine brand Chandon India Brut & Chandon India Rosé bag Silver Medals at The Champagne and Sparkling Wine World Cha
»  Malini Menon takes over as General Manager - Sales & Marketing (South India) for The Fern Hotels & Resorts
»  Lords Hotels and Resorts appoints Ravi Kumar - Regional Sales Manager, Hyderabad
»  The Leela Palaces, Hotels and Resorts announces the appointment of Megha Ajgaonkar as General Manager – Sales
»  Beam Suntory First-Half Sales Rise 12% on Strong Demand for Premium Brands and On-Premise Recovery
»  Click Hotels by Suba appoints Rajan Kalra as Director of Sales
»  KFC introduces KFC Double Down Burger
»  The Westin Hyderabad Mindspace appoints Deepak Verma as Director of Sales and Marketing
»  Moët Hennessy’s Chandon marks 2nd consecutive win at the Decanter World Wine Awards 2021
»  Hotels, cinema halls and malls will operate at 50% capacity : Thane
»  Radisson Blu Resort Dharamshala appoints Siddharth Shanker Giri as Director of Sales
»  Pullman & Novotel New Delhi Aerocity appoints Pavan Kumar as the Director of Sales and Marketing
»  Chalet Hotels shuts down Bengaluru’s Marriott Hotel Whitefield for one month, due to surge in Covid cases
»  HAI urges FM to customise ECLGS scheme, extend moratorium period and reduce loan interest rate
»  Delhi Goes Into Lockdown Tonight, Ends Early Monday Morning
»  Hyatt Place Gurgaon appoints Swati Arora as Director of Sales
»  Lords Hotels and Resorts appoints Ashutosh Vaidya as General Manager – Sales at Corporate Office, Mumbai
» launches free ‘Digital Starter Kits’ to help restaurants generate more sales
»  HCL Stays Firm On Its Commitment To Reduce Dependence On Single-Use Plastics
  The Indian Institute of Architects (IIA) Natcon 2020 virtual event concludes successfully
  Winners of The Park Elle Décor Student Contest felicitated at Indian Design ID 2020
Receive the best of Hospitality content in your mailbox.
Weekly e-Newsletter
Events Calendar

© Copyright 2016 Saffron Synergies Pvt Ltd