DOMESTIC WINES COME INTO THEIR OWN

WITH the wine drinking culture flourishing like never before, demand for domestic brands too has soared. Traders said that Nepal-made wines, which were in search of an identity until a few years ago, now command a market share of more than 50 percent. And penetration is increasing day by day, they added. The rate of growth in Nepal’s wine business can be gauged by the fact that there are now around eight factories manufacturing wines. Domestic wine brands like Divine, Hinwa, Grapple, Nettlange, Royal Gate, Nessi and Dada Ghare, among others, are the best selling products in the local market. Until two-three years ago, there were just three wine makers in the country. “The culture of consuming wine has increased in Nepal. And Nepali manufacturers have benefited from this,” said Ram Thapa, proprietor of Sankata Wines, a supplier of Nepali wine brands like Hinwa, Grapple and Nettlange. “When we entered the business some eight years ago, the scenario was totally different. It was difficult for us to sell even a single bottle daily. But the situation has changed now, and the business has really taken off.” According to Thapa, exceptional quality at affordable prices have played a key role in the expansion of locally made wines. “The Nepali people have already accepted the taste of domestically manufactured wines. Now, they are confident about the quality aspect as well. And this has given a boost to the market,” he said. Another key factor contributing to the growth in sales is price, he added. While imported products cost around Rs 450 at the lowest, those manufactured here are available in the range of Rs 350 to Rs 400. Similarly, a spreading party culture and characterization of wine as a social drink has helped the market to flourish. Traders said that wines had become an integral part of social gatherings and parties. “Wine is considered as a social drink. Also, it has health benefits. This has also drawn people towards wine,” Thapa said. According to Babu Ram Thapa, proprietor of Thapa Wine Suppliers, the authorised distributor of Divine wines, the company sells around 10,800 l (1,000 to 1,2000 cartons) of Divine wine in the Kathmandu valley monthly. “The country’s monthly requirement amounts to 4,000 cartons,” said Thapa. The domestic market has a huge preference for sweet wines, he added. “Among our customers, 70 percent buy sweet wines.” As per Thapa, sales of domestically manufactured wines have been on a growth trend since the past three years, and the momentum continues. Even some of the premium stores in the city are witnessing an improvement in sales of Nepali wines. “Since the quality of Nepali wines is very good, people who used to consume imported products are now going for them,” he said. Traders said that locally manufactured wines have a huge market potential, and could dominate the domestic market within a couple of years. They predict that the market penetration of Nepali wines is likely to increase to around 60-70 percent within a year if the current trend persists. Thapa of Thapa Wine Suppliers said that domestic manufacturers hadn’t been able to tap the market outside Kathmandu due to their small production capacity. “The market outside Kathmandu is growing fast, and people are accepting the taste of wine. Nepali wines are priced well and can attract greater sales in other major cities of the country,” he said. There is great demand for wines in Pokhara, Biratnagar, Dharan, Butwal, Nepalgunj and Itahari, among other cities, he added.