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Quashing rumours that the company had taken over full control, Kapil Sekhri, a Director of Fratelli, informed delWine that in the first phase there has been only a strategic alignment with FWM and an understanding with Dharti Desai. She is an NRI in printing and direct marketing business, who entered wine imports by buying out the erstwhile import firm Brandwagon but now with seemingly waning interest in the wine business.
The rumours have been rife for a month that the import firm is being taken over by Fratelli. In fact, Craig Wedge, the Aussie COO of FWM was seen in Delhi last month with their marketing staff promoting higher ended Fratelli wines and meeting people in the hospitality industry. Kapil does not deny that but says, ‘Craig will work as the Brand Director/Ambassador to help us strengthen the market for our high end wines like Sette and will also promote the imported wines we have been marketing and all the imported labels of FWM that will come directly under our control. We will also utilise his expertise to conduct special trainings, make tasting manuals, visits to hotels and special stand-alone restaurants to promote these brands.’
Kapil also says that the retail business of FWM and Direct to Retail business is not part of the strategic alliance but people in the know assert that the deal is lock, stock and barrel. Meanwhile, the Fratelli office has moved into the existing offices of FWM ostensibly as it offers more space which they were seeking anyway. Apparently, the import license would also be taken in the name of Fratelli.
Fratelli has already changed its Distributor for North, Asian Esprit and is now working with Elite –the Anil Malhotra and Nitin Verma group. However, the new rates would be applicable only when the new excise policy is announced. As of now, the old policy has been extended till May, 2015. Nitin Verma is travelling overseas currently but his elder brother when contacted by delWine confirmed the switch-over but added that the distribution work can start only once the new policy is announced.
The policy of Fratelli is to be a significant market player in the industry and it plans to keep imported wines in the portfolio in order to service a wider cross-section of the wine drinker base. ‘Adding imported wines will give us that extra punch we need. There have been brands that are popular here in the market-why not take them further rather than re-inventing the wheel,’ says Kapil. He is, however, categorical that they would not push all the brands available with FWM, in Delhi. We will take fast moving brands like Calaterra, Zardetto etc to market them in Delhi.’ Apparently, the branding, pricing and positioning strategy is being worked out in consultation with Craig Wedge, who is the Brand Director.
Things will become clearer when the Phase II as envisaged by Fratelli is in place in a couple of months. However, consolidation and strategic alliances have started taking place in the Indian wine industry and will be the order of the day for producers trying to increase the market share. Hopefully, it will be in the interest of wine consumers and will expand the market.
Subhash Arora |