When you meet Paul John, you might not guess that he runs a Rs. 500 crore (Rs. 5 billion) liquor business with an estimate valuation of the enterprise pegged at over Rs.900 crores or that his Original Choice whisky label sells about 11 million cases annually and is the second-most selling label in Karnataka despite a temporary set-back because of a delay in shifting to tetra-packs for the smaller packs in time and the exponential growth due to unexpected acceptance of this packaging by the consumers.
He appears to be an introvert with a simple demeanour. But as he walks in for the dinner he is hosting for me and Aeisha Sahni, Brand Manager - Big Banyan and Paul John Single Malt, at The Paul, a beautiful suite-hotel owned by him in Domlur, he cannot hide his smile. Reason - they had just introduced ‘Paul John Single Malt Whiskey’ in Goa and it had been a successful launch with 100 cases sold in the first two days. He seemed quite upbeat about the success of the single malt and hopeful that it was on its upward trajectory to compete with the internationally popular Amrut label.
There was another reason for his being cheerful and openly pleased. Prince Charles and Camilla Duchess of Cornwall had stayed last month at the Kumarakom Lake Resort, also owned by him, to celebrate the 65th birthday of Prince Charles on November 14 and it had been a highly cherished visit with both the celebrity guests giving a big thumbs up to the Award winning property where I had first met Paul John to taste the maiden vintage 2006 of Big Banyan wines presented by the Milan Master Wine Maker, Lucio Matricardi in August 2007.
Interview with Winemaker: Lucio Matricardi de Big Banyan
Before we started talking about the wine portfolio and business of Big Banyan, Paul was quick to explain that the Single Malt had in fact already been exported for a year and a half to the UK where it had won medals and roaring praises from several whisky pundits like Jim Murray of Whisky Bible, the Robert Parker of whiskey. Selling for £60 a bottle for the single cask, the single malt had been well accepted and rated before marketing in India through the launch of its ‘Brilliance’ and ‘Edited’ labels and the response had been overwhelming. Paul adds that single cask hasn’t been introduced in India yet.
Countering my notion that the single malt was usually matured in the cask for 12, 15 and 18 years etc, he explained, ‘due to our warm climate, the maturation is much faster in India than in Scotland. We also have a much higher- 8%- yearly evaporation (Angels’ share) of alcohol as compared with only 2% in Scotland. We don’t add any caramel to give it colour or any additives. We also keep our alcohol levels 46% though it is required to be a minimum of only 40% in whiskey. The reason is that if we reduce the alcohol level to any less, we have to use a chill filter.’
It might interest our single malt lovers that the trend today is on non-chilled filter and non caramel added whiskies, even if the colour is quite pale. He also clarified that Goa is more tropical and adds another dimension to the flavour.
Big Banyan Wines
Although Paul John was quite vocal about wines, he also was candid when he said, ‘I am a businessman. I have to make some profits. The wine business, at least today, does not seem to be as lucrative as it was predicted when we started in 2006. The industry has not grown at the pace we expected. But we continue to make improvements in our wines and are gradually and consistently increasing our sales and market reach.’
Big Banyan buys grapes from Maharashtra and hauls them to Goa in refrigerated trucks, though it is an onerous task to maintain quality. Is the company thinking of setting its own vineyards? ‘My feeling is that as businessmen we cannot take care of the vineyards but find it prudent to maintain the quality using our viticulturists to visit the farmers with whom we have long-term contracts. It is easier for us to maintain better quality following this procedure,’ he says with confidence.
But with the current state government policy encouraging production in Karnataka, doesn’t it make economic sense to plant the grapes and start the production here in Karnataka? ‘I already own some land in Karnataka but we are undecided whether to develop vineyards on this land. My feeling is that vineyards should be developed by experts and we should only focus on wine production and marketing.’
Big Banyan has 9 variants currently, says Paul: Chenin Blanc, Chardonnay, Sauvignon Blanc, Merlot, Shiraz, Cabernet Sauvignon, Zinfandel Rose and Late Harvest Moscato. ‘Limited Edition Shiraz’ crafted from Shiraz of 2008 vintage is the apple of his eye - a top end, delicious, complex and well balanced wine. Only 6000 bottles were produced. Priced at Rs.1200 in Karnataka and Rs.950 in Goa, these wines are expected to be sold out this month and the 2009 vintage would be then released next April, says Sridhar Pongur, COO and Joint MD-JDPL, who had dropped in for a few minutes to oversee the last minute arrangements for his daughter’s wedding in the Hotel the following day.
Shiraz is the biggest selling varietal for Big Banyan. Confirming that Lucio is fully in control of winemaking, Paul says ‘our philosophy is to make only varietals to get the pure taste of every grape variety and we do not like to blend; every varietal has 100% of the same grape.’ ‘We want people to know and taste single varietals first and then shift to blends,’ adds Aeisha. Paul says he is very proud of the Limited Edition. He has reason to be; at a tasting later with food, I found it a fruity and yet complex and concentrated wine with a nice balance and kept on reaching for more during the dinner.
The company is focusing on sales of Big Banyan currently in Bangalore, Goa, Pondicherry, Andhra Pradesh and Kerala, says Paul, adding that Kerala market is picking up well. He is quite pessimistic and disappointed with Andhra Pradesh where the taxes are too high for any Indian wines to make a mark. ‘Our wine costs Rs.1100 and has to compete with the likes of Jacobs Creek selling for Rs.1200-the anomaly being due to higher taxes for Indian wines. We are not alone in this predicament-the whole Indian wine industry is suffering,’ he laments.
With the sale last year of 15,000 cases, Big Banyan aims to touch the sale of 20,000 cases this year. He says it has been their policy not to be carried away with short term, unsustainable promotion schemes and selling only volumes. He would like to clock the figure of 25,000 next year, though. They plan to enter Delhi in 2015 before entering Maharashtra.
So what’s new at Big B? Chardonnay made from grapes bought in Nashik is what’s new, he says. Only 700 cases have been made in the first vintage. Quite a good quaff for the first vintage, I think Merlot is a bit too sweet and appears to be made from overripe grapes without complete phenolic ripening. Aeisha Sahni comments that this wine is selling very well primarily due to this underlying sweetness. Sold for Rs. 690 a bottle in Bangalore and Rs.510 in Goa, this is a pretty decent off-dry wine for novices and women.
The Big B wines are sold mostly in retail, a good 60%. Presence of modern retail stores like ‘Dropz’ in Bangalore are the focus. However, being in the specific markets of Karnataka and Goa, they are listed in several prestigious hotels and institutions which sell 40% of their wines.
Paul wasn’t very keen to talk about the lower ended Ampersand label which sells for Rs.299 in Goa as it is not in big numbers at the moment. He also stayed away from discussing ‘Goana’ fortified wine which is the biggest selling fortified wine from John Distilleries in Bangalore and at around 120,000 cases a year, adds significantly to the total wine market of 2.3 million cases in India and is one of the big selling brands. In fact, it is made in the distillery and till a month ago was handled by the John Distilleries liquor sales team, but now the young and dynamic Aeisha Sahni has been given charge for this product as well, indicating an increased focus. With the expected sales of around 200,000 cases this year, Goana might well become the biggest Indian producer of fortified wines (and not calling it Port either!). Interestingly, if they combined the sale of this ‘wine’ with Big Banyan like the current national trend, they would perhaps be the number two wine producers in India-ahead of Four Seasons and Grover Zampa!
Big Banyan makes no sparkling wine. With some producers introducing it recently and even Four Seasons and Grover planning to introduce it soon, I wonder if Big B is also planning to bring it into the market. ‘Negative,’ says Paul ‘we are not contemplating making any sparkling wines. We feel there is not enough room for so many producers as the market is rather limited and the players too many.’
Big Banyan is moving ahead at a steady pace with the stewardship of the Master Wine Maker Lucio Matricardi. Paul John is very supportive of the wine division even though it does not add significantly to the top level of John Distilleries. Perhaps, he is watching the wine market with hawk’s eyes!
Subhash Arora
Tags: Paul John, Big Banyan Winery, Goa, The Paul, Paul John Single Malt Whiskey, Lucio Matricardi, Ampersand, Goana |