MUMBAI/BANGALORE: Connoisseurs of international wines and spirits will have to shell out as much as 30% more for their favorite sparkling alcoholic beverage, courtesy the falling rupee. The rupee has been on a free fall against most foreign currencies. India imports a significant chunk of its favourite drinks labels from Europe, followed by countries like US, Latin America, South Africa, Australia and New Zealand.
But with rupee hitting new lows every other day, pressure has been mounting on importers to raise prices of liquor brands. Usually, inventory lasts from a few weeks to a few months and the impact of the rupee isn't felt immediately. The impact is felt when fresh orders are placed, said industry players. Moreover, firms can't easily raise liquor prices as in the case of consumer electronics or FMCG sectors. Importers have to register the new retail price of the foreign liquor brand with the excise department first, they added.
"For our new consignment of wines from Chile and New Zealand, we had little option but to raise prices of Vina Caliterra Colchagua Valley and Sileni Estate Hawke's Bay by 38% because of the weak rupee," said Abimalek M David, VP, sales and operations, at Finewinesnmore, a boutique wine seller of 21 international labels. A 750 ml bottle of Chilean or New Zealand wine is being sold at Rs 1,800 against the earlier price of Rs 1,300.
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