Wrattonbully’s Eight at the Gate Wines is poised to make its mark in India, with shipments scheduled to commence in March.
Eight at the Gate director Jane Richards said they had entered Japan, Korea, Hong Kong, the US and Switzerland markets and were finalising discussions with Singapore and India.
“India is an interesting market, it’s 1.3 billion people, but it’s a much smaller portion that are in a place where they actually purchase wine,” she said.
“But, when they say ‘small,’ it’s like 40 million people, so it has got potential to be a very long-term, very large market for Australian wine.
“It’s an exciting market, it’s a very young demographic which is different to the other markets I got into.
“For example, Indian weddings go for five days, so when you have got that big bubble in the age bracket that are all getting married, there’s a huge potential there.”
Ms Richards said the journey to enter the Indian market had been a three-year endeavour involving multiple visits, the first in 2020 just before COVID lockdown.
She said the Department of Trade and Investment (DTI) played an integral role in facilitating their entry into the Indian market.
“Marcus Kuller from Mount Gambier is my local DTI contact; we went first in 2020 to do a bit of research and meet some people and we have built those relationships over the past three years, not just with importers, but also with wine writers and influencers,” she said.
Ms Richards said India’s first order would consist of a pallet and a half (equivalent to 100 dozen bottles) of their Pinot Gris and Cabernet Shiraz, which was a typical starting point for these export markets.
“They start with one pallet and build from there, and you have got to be prepared to be there for the long haul, because we have to help them build the market,” she said.
Ms Richards said everything was looking positive, however she acknowledged it was an extremely challenging time globally.
In regards to China, the tariff is currently undergoing a five-month review, and Ms Richards said Eight at the Gate was establishing a direct to consumer marketplace in China.
“We are anticipating with hope they will lift the tariff, and if they do, that will open the doors to China again, but it will be nothing like it was for the Australian wine industry,” she said.
Ms Richards said although Eight at the Gate did not sell wine to China, the closure affected their grape business, as 25% of their grapes are used at Eight at the Gate and 75% are sold to other wine companies, who exported wine to China.
“The China closure absolutely affected our grape business, because all of a sudden there’s a lot more grapes for the amount of wine South Australia produces,” she said.
“We have been caught up like everyone else; when there’s a glut of wine and grapes in Australia that affects the entire industry.
“You see prices that are absolutely not sustainable, but that’s what people are having to do.”
Ms Richards said although 2023 was a challenging year, it was exciting as Eight at the Gate released five new products – a Pinot Gris, Rose, Single Vineyard Shiraz, Premium Cabernet and a Piccolo range.
“Things will be challenging in our industry in 2024, there’s no question, but we think we’re in a good position to continue growing,” she said.
“Whilst we have been successful in establishing new markets, the investment you have to make is significant, but if you want to stay in business that’s what you have to do.
“In 2024 we’re building on what we have established in 2023, and we have our sights on a few international markets being Malaysia and the Northern Hemisphere.
“We have chosen to just run our own race, focus on what makes Eight at the Gate special and why we are a good partner to work with long-term, and that’s all we can do, put our best foot forward and present who we are.”
