Wines from Kingfisher is a welcome idea that will help expand wine industry in India  but Kingfisher Wines is not such a hot idea, I feel

The king of beer has decided to conquer the world of wine. As anticipated, Mr. Vijay Mallya, Chairman of the UB Group, the largest domestic entity making beer and spirits announced at the AGM of the company on Tuesday that UB will start marketing wines which will be available next year. Mr. Kingfisher also said that riding on the brand value of its beer and the airline, the wines may be named as Kingfisher wines.

The idea of wine marketing from this powerful 'Domaine' is welcome. It will help expand the wine industry in a big way. The group has the financial and distribution muscle to make it to the top. UB has already acquired Bouvet Ladubey wineries in France and acquisitions of Domaine Carneros in California , wineries in South Africa and Australia are next on the cards. The group is also looking at the wine portfolio of its partner Scottish and Newcastle which owns 37% stake in the company.

But the concept of using a beer brand for wine seems to be an off-putting idea that needs to be looked into. Wine is not the same thing as beer, like beer is not the same thing as sharaab (liquor). While it is true that both beer and wine are low alcohol beverages that ought to be encouraged vis. a vis hard liquor, the similarity ends here.

Wine is a 'beverage of romance', a food drink that plays with the food ingredients on the palate and can give pleasure and  synergy and create a math equation where 1+1> (greater than)2 , unlike beer which can at best ride with it. It has unique characteristics, least of which is the froth (except bubblies, which is another exciting story). It is also a drink of perception and programming of the mind. One thinks of the aromas and fruits and acidity and tannins while drinking but not of the hops or the froth. It is also a food beverage that pairs differently with different foods, giving unique, enjoyable experiences.

The thought of beer while taking a sip of wine has never been found appealing by any wine lover and may put one off beer and wine.

The strength of group lies in financial and distribution muscles. Nothing can prevent Kingfisher Airline splash a 'Buy one Get one Free'' offer. Buying an air ticket and getting a bottle of Kingfisher Wine free will certainly accelerate the growth of the consumption rate. After all, Seagram's with a portfolio of premium scotch whiskies like Chivaz Regal and with the reportedly bundled offers of free wine has made Jacobs Creek , the largest selling wine brand in India with 14000 cases of the moniker imported from Australia last year. Within a couple of years, the company will become the second biggest wine importer in the country, riding on just one brand, driven by the aggressive policy. But Seagram's is not aiming to name their Indian avatar being bottled in Nashik as Chivaz or even Jacobs Creek , the issue of royalties notwithstanding.

It will be very interesting to see how UB uses its distribution muscles. At least two of its distributors have very successful wine distribution channels and it will be interesting if the company can use the synergies in promoting wines too. Wine marketing is not necessarily the same as beer marketing. For one thing, the target groups might be different. Women who are driving a substantial part of the growth are not likely to be impressed with a name associated with a beer label. It has been also proved in various studies in Europe and the US that wine drinkers are generally more sophisticated and are likely to be impressed more with the marketing strategy than a name that reminds them of beer.

It is also pertinent to mention here that this is not their first outing with wine. Until four years ago, they had an expanding portfolio of imported wines. One even noticed them at a stand at a wine show in Delhi where the staff  talked of usurping  commanding position in the imported wine market. But the wine portfolio disappeared before the take-off. One often hears in the cocktail circuit how the group has been using its influence in keeping the import duties high to discourage people shifting from beer to wine. If so, the real beneficiaries of the high tax regimen have been the Indian producers who have been growing at a higher rate of 35% and have been able to sell practically anything in a wine bottle (let us not lose sight of the hotels who have been the biggest beneficiaries of the government largesse).