Premiumisation is a Great Wave to Sail On

Indians are finally taking to alcohol like a cultural product and not just using it for intoxication. They are enjoying good quality alcohol like good food and music, says Kapil Sekhri, Managing Director, Fratelli Wines.

Premiumisation has captured the imagination of the discerning Indian wine drinkers. Companies have started to change their strategy to cater to this segment. Fratelli, since its inception, has focused on launching premium wines. “The company has realised that Indian consumers are ready to shift from cheap imported wines to premium imported wines and is exploring this trend with proper communication and brand positioning,”points out Kapil Sekhri, Managing Director, Fratelli Wines. When asked as to how premium brands impact the alcobev market, Sekhri says it is difficult to generalise but the basic shift in consumer mindset in urban India is nowadays towards experimentation. This, he says, makes it easier for manufacturers to take bold or bolder decisions. In this context, the market is expected to see many new product launches in all spectrums of alcoholic beverages. Asked if this will lead to rationalisation of regular brands, he thinks “all companies, if given a choice, will choose profitability over scaling and if capacity utilisation of facilities can withstand premium products, then regular brands will lose focus, and rightly so.” Giving a lowdown on Fratelli’s newly launched premium products, he points out that they have always been mavericks and benchmark setters in premium wines. Their journey began with launching Chardonnay in 2011 and progressed to Sette in 2012 to Sangiovese Bianco in 2014. “Both our new ranges M/S & J’noon have got very positive response from the market. Getting sold out status on wine costing Rs. 4000 a bottle and sparkling costing Rs. 3500 is a great salute from the trade & consumers,” he states enthusiastically.

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