Diageo ties up with Reliance to retail wine
Diageo has tied up with Reliance Fresh to retail its international wines portfolio in the country, reports Lalatendu Mishra.business Updated: Jul 27, 2007 01:57 IST
World’s biggest spirits company Diageo has tied up with Reliance Fresh to retail its international wines portfolio in the country. Diageo will launch domestic wines at Reliance Retail outlets, along with regular liquor shops in September. The move is expected to increase the market share of the company.
Speaking to Hindustan Times, Diageo India Managing Director Asif Adil said: “The tie-up with Reliance will allow more consumers to experience the taste of our international brands. With this, we are making a serious foray into the wines business in India.”
Asked about the expected volumes, Adil said: “The sky is the limit. We are expecting growth in multiples of 100 per cent.” Earlier this year, the company introduced its exclusive wines at select outlets in India.
According to the agreement, Diageo wines will initially be available at 15 Reliance Fresh outlets in Mumbai and Pune. It would be expanded to more outlets as and when Reliance Fresh expands its network. Diageo is also expected to tie up with other major retailers and malls.
According to the excise law, only wines and beers can be retailed at outlets and malls, not spirits (whisky, rum and vodka), which are exclusively available at licensed liquor shops.
To begin with, Diageo’s Blossom Hill, Californian wine would be made available. Blossom Hill Red wine and White wines are in the range of Rs 700-800. Other Blossom Hill varieties like Chardonnay, Colombard Chardonnay, Merlot, Cabernet Sauvignon and Cabernet Shiraz are priced in the range of Rs 900 -1,000.
Diageo is of the opinion that global exposure would translate into significantly high wine consumption in the country.