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Have Ready-to-Drink (RTD) beverages paved the way for canned wine in India?

 19-April-2024 | 651 Views |  1 Min Read 

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As the demand for approachable, entry-level products increases among millennial consumers, Indian wine producers are turning to aluminium as a potential solution.

India’s per capita wine consumption is currently less than 100 ml, accounting for less than 1% of overall alcohol sales. This starkly contrasts with the global average of around 13%, highlighting the considerable gap in wine consumption between Indian consumers and the rest of the world.

However, all signs suggest that this trend is poised to shift. Business Insider reports that Millennials’ preference for experiences over mere intoxication is driving growth in the Indian wine market.

With wine projected to grow at a Compound Annual Growth Rate (CAGR) of 10% over the next five years, Indian producer Fratelli Wines is capitalising on this burgeoning domestic interest. Jayanth Bharathi, the company’s deputy general marketing manager, expressed their aim to make wine more accessible to consumers. Fratelli Wines seeks to introduce products that are easy to drink, aiming to eliminate any perceived snobbery often associated with wine.

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In October 2020, the Mumbai-based brand introduced its canned wine collection, TiLT by Fratelli Wines, comprising red, white, rosé, and sparkling wine variants.Fratelli Wines is one of just two Indian brands that offer canned wines, alongside Sula Vineyards and its Dia Sparkler, which was also introduced in 2020.

Since its debut, the brand has experienced strong growth for TiLT, with annual growth ranging between 15% to 20% since its initial release.

Co-founder and winemaker Alessio Secci anticipates that canned wines have the potential to gain popularity in India, and believes that more companies will adopt this trend. There is an increasing demand for Ready-to-Drink (RTD) products in the liquor industry, and the current trend indicates a promising future for canned wines,” he comments.

In fact, this month, John Distilleries revealed to the drinks business its intentions to unveil canned wines as part of its Big Banyan wine range. Aeisha Sahni, the company’s head of wines, disclosed that the project is currently in the research and development phase and is likely to be launched within the next year or two.

Sahni further explained that the company opted to include canned wines in its portfolio due to the benefits that single-serve options offer compared to bottled wines, which must be consumed within a few days of being opened.

However, not all Indian wine brands are considering expanding into canned offerings. Grover Zampa Vineyards, Chandon India Winery, and Vallonne Vineyards all informed the drinks business that they currently have no plans to enter the canned wine market.

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Sumit Jaiswal, the Vice President of Marketing and Exports at Grover Zampa, clarifies that although some brands may be interested in launching ready-to-drink wines, Grover Zampa, as a fine wine brand, is committed to developing a more premium portfolio.

Jaiswal anticipates that it will be a few years before canned wines gain traction in the Indian market. He elaborated that consumers currently perceive wine as a lifestyle beverage and value the experience associated with bottled wines. However, he concludes by stating, “Once younger wine enthusiasts begin adopting a more casual approach to wine consumption, it could gain momentum in India.”

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