We are drawing close to the end of 2014 and it seems the new year is going to bringing in some great news for our lovely and serene city. Nashikars will be enthralled to know that Custom Crush Winemaking is soon going to start in Nashik from the New Year. It would be the first step for the country and the concept of custom crush agreement will be enforced by a Nashik based vinery and a Delhi- based marketing company by the beginning of New Year, January 2015.
Nashik is widely admired as a wine making industry from past several years. Nashik is famous for its sweet-bitter grapes and is widely known in producing grapes of both high quality and great quantity. Thus, the wine industries in Nashik are on a boom.
According to the agreement, the existing winery is allowed to crush, ferment, and age and bottle the wine for the individuals, who then commercialize the wine under their own brand.
A specialist in wine making industry, An Oenologist Rajiv Seth stated, “The concept of custom crush will help the passionate wine lovers with some financial muscle to start their own brand, without having to invest in vinery equipment.”
The Indian Wine Industry
Wineries in India are currently not in the position to produce grapes, harvest and hence prefer to crush. The reasons behind this include a lack of good bottling facilities, good winemakers, technology issues, bank dues and capital of the organization required to make a good quality wine. Only a fistful of wineries is able to make wine of which 70% of the market share is booked by Grover and Sula.
To overcome such hurdles, a concept like custom crush winemaking would be an awesome opportunity for the farmers as well as the wine producers to reap optimum benefits.
Mr. Seth explained, “The move is aimed to bring back the troubling wine industries. The situation in India is down for the wine industry right now; the installed capacities at most of the wineries are lying unused. There are about 88 wineries in the country of which Maharashtra, Goa, and Karnataka collectively produces about 10 million liters of wine annually, against the installed capacity of 20 million liters”.
The wine intake in India has been increasing by 30% per annum for the last 2-3 years. The wine industry is gaining popularity, but the wineries are not able to capitalize the situation. One of the reasons behind is huge bank debts. As the most wineries have turned out to be unused and non-performing assets, the banks are unsupportive.
Setting up a wine business in a full-fledged condition needs at least 2-3 years of waiting for the first bottle to be produced. But because of the heavy bank dues, many farmers give preference to farm table grapes instead of wine variety of grapes to survive. Many wineries tried making wine from table grapes like the Thomson seedless and Bangalore Purple. But they have been unable to come up with the new varieties of wine. Also, the farmers are not ready to plant grapes as it requires at least Rs 5 Lakh for plantation of grapes per hectare.
Mr. Shivaji Aher, President, All-India Wine Producers Association, who also owns a personal wine producing company stated,” The custom crush agreements are popular in Australia and California. The distributor knows the market and can implement various strategies to improve the business, thus, such moves are necessary to create a win-win situation for farmers, businessmen, and wine-makers”.
Custom Crush winemaking for newbies
Custom crush winemaking is producing wine for other companies, who then commercialize the wine under their own label or brand. Farmers are going to be benefitted with this new opening in the wine industry. As the farmers alone cannot afford to produce as well as commercialize the wine in the wine market.
An amazing change in the wine industry is about to become. We, Page3nashik team welcome the change and hope for the best future of the wine industry in Nashik. Cheers!