A Walk in The Clouds: My Romance with the Bubbly

It was my first aerial view of the disciplined rows of neatly laid vines that drew me in to the world of Vinum of  Dyonisus. Oblivious to this nectar of Gods, I was stationed in Nashik - 140 miles from Mumbai  and the largest wine growing region in India. Indians are traditionally whiskey or Rum drinkers- as a hangover of our British friends who colonised us- and the swirl and whiff of wine are a recent rumble in the tumble. 

Sula Vineyards was founded by Mr. Rajeev Samant in 1998. Samant studied engineering at Stanford University and worked at Oracle in San Francisco thereafter. After quitting his corporate job, Samant established Sula upon his return to India. He initially experimented with crops such as mangoes, roses, teakwood, and table grapes before realizing that Nashik’s climate and temperature were well-suited for growing wine grapes. In consultation with Kerry Damskey, a Californian winemaker, Samant set up the first winery in the Nashik region of India. It was the grape stomping in February, during the Sula Fest in the Sula wineries, that I had my first sip of the wonderful Rasa cabernet Sauvignon and since then have been on a journey to increase my knowledge and depth of wine Industry and the product itself.

Indian wine set record production levels of some 18 million litres in 2016, but it is the domestic rather than export market that really drives the sales. India's domestic sales rose by 20% in 2015. India has three major wine producing regions- Maharashtra, Karnataka and Himachal Pradesh. The Nashik district in Maharashtra region dominates Indian wine production, accounting for 80% of its output, thanks to a favorable climate, fertile soils and a long grape-growing history.  Other areas of Maharashtra that produce grapes include Satara, Sangli, Ahmed Nagar, Pune and Osmanabad. The country is dominated by five major producers that account for 90% of all wine produced. Other major players include Grover Zampa and Vallon A, Karisma

Much of the domestic wine suits the sweeter Indian palate and to date has not been suitable for exports. Shiraz, Cabernet Sauvignon, Pinot Noir, Zinfandel, Merlot, Cabernet Franc, Cinsault and Pinotage are the main red wine grape varieties. Sauvignon Blanc, Chenin Blanc, Ugni Blanc, Chardonnay, Clairette and Riesling are the major white wine varieties. Indian wine exports are now worth over $7m and expected to top $8m in 2016 with over 2 million litres of wine now being exported. The industry is being buoyed by strong government and Treasury support and steps to harmonise regulations and ensure tax and 100% excise breaks to maximise the sector's growth.

India's key export markets are:  Malaysia, UAE, Bhutan, Germany, UK, Sri Lanka, Maldives and New Zealand.India has a massive untapped opportunity for grape production. 

Due to the high costs involved in managing vineyards only around 1% of the 123,000 acres of vineyards are actually dedicated to wine production. Indians have just started warming up to the palate of wine and as i saw those neat rows in Napa valley I knew that I was home and in the safe world of Dyonisus.

                                                              Ajay Serohi

                                                             -- On A Walk in the Clouds --

Blending passion and distilling wisdom

Enjoying wines has been one of my leisurely passions for the past 15 years. Thus, taking the well-reviewed GSB course on the Global Dynamics of the Wine Industry is the best way for me to indulge in my interests, as well as to gain practical business insights into a highly competitive industry.

My personal interest in wines started in my Cornell undergraduate days. In my senior year, I attended Cornell Hotel School's annual wine tasting course.  With a large 800+ student capacity, it was the unofficial course you had to take to "graduate”. As an uninitiated student, the carefully curated course comprised lectures and tastings of 6 wines from the most influential wine making regions in the old and new world; a different region each week. I was hooked on the romanticism of the whole wine making philosophy of terroir and technique, as well as intrigued by how such a smorgasbord of flavours and scents could be created through a process every bit a science, art and divine intervention itself, through acts of weather. 

Fuelled by my new-found interest, as a poor student, I was surprised by the hospitality of what I had assumed would be the snobbishness of wine makers when my emails to wine makers in Alsace were answered. I was going on a trip to France and sent cold call emails requesting for winery tours - Domaine Hugel and Paul Blanck replied favourably, despite my stating that I was a university student with no ties to the wine industry. I was deeply touched by their warmth and generosity during the visit as I toured their vineyards, facilities and even got to taste some exquisite wines. Since then, I have gone on several wine tasting trips in NY state, Bordeaux, and various parts of Australia. I look forward to discussing and tasting wines from different regions amongst fellow Stanford aficionados, especially bottlings from our “home turf” of the acclaimed Napa Valley and Sonoma regions.

The family at Paringa Estate, Mornington Peninsula, Australia

It is often said that to make better decisions, don't let emotions cloud our judgement. In that vein, I’m also looking forward to learning dispassionately about the wine business to gain practical insights into strategy, brand-building, economics and sales. In particular, it is a highly competitive industry where newcomers can rapidly make a name for themselves, but could fall out of favour as quickly as the fast-evolving consumer trends in wine. There is also great degree of product differentiation with top limited production wines costing thousands and sold on futures, all the way down to the two buck chucks. Understanding profitability and revenue models at the mid to lower-end, would help shed light on how consumer value is created at the high-end. I believe some of the insights from the wine industry can also be applied more generally across to other sectors.

Looking forward to 2 weeks of exciting wines, rejuvenated palates and intellectual discourse on the art and business of wine making. Cheers!