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In his column for The Financial Express, Yatin Patil of Vintage Wines has some tips for the government: "It would help if
the MRP of liquor is made uniform across the country, and there is
consensus among states to bring about a uniform duty structure under
four heads—excise & countervailing duty, sales tax, licence fee and
label registration charge. The MRP must be mentioned on the bottle and
sales tax is should be charged on the MRP mentioned. Consumers will be
more comfortable with the fact that they are buying the same product in
different places at the same price. Not only will it affect prices but
also the product will become consistent. The uniform duty structure
will also stabilise the differential pricing in various states due to
the tax structure." More: Financial Express
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Australian wine technologist Diana Davidson has expressed concerns over Indian wine not meeting international standards and predicted that wine-makers from China, Argentina, Chile and South Africa could easily wipe out Indian wine from the international market. Speaking at a workshop organised for farmers by the Indian Wine Producers’ Association in Pune, she said, “Some Indian wines are good but most are below international standards. This is because farmers do not have adequate knowledge about the variety of plants, the soil required, irrigation techniques and pesticides to be used in vineyards. Most grape growers use traditional methods of cultivation and non-existing wine-culture too affects the quality of wine production.”
The Indian wine industry is worth Rs 1,000 crore and is expected to grow to Rs 4,500 crore by 2011. Since January this year, Indian wineries have produced 22.5 million litres of wine, which is exported to countries such as France, Italy, Germany, United Kingdom, Singapore and Belgium.
More: Business Standard
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Mumbai, August 16, 2008: Finewinesnmore the country’s leading marketer and distributor for premium imported wines, spirits and beverages has added its first domestic wine label to its elaborate portfolio. The tie up with leading domestic wine producer Chateau D’Ori will permit Finewinesnmore the marketing and distribution rights for Chateau D’Ori wines across the country except Maharashtra & Goa.
With the expertise of dealing with over 140 premium international wine labels across France, Italy, Chile, Australia and many other countries; Finewinesnmore is among India’s top importers and marketers of luxury wines and spirits. Chateau D’Ori is currently present in Maharashtra and Goa and is looking to capture the growing wine market across the country. The wines are based on Bordeaux style and have become extremely popular amongst wine enthusiasts across the country.
On the occasion of this tie-up Ms. Dharti Desai Founder and CEO of Finewinesnmore says, "With a view to expand its footprint Finewinesnmore has been looking for a strong domestic partner. The Chateau D’Ori philosophy and vision was a perfect compliment to Finewinesnmore and hence was the preferred partner. With our unfailing commitment to wines we intend to go a long way in serving the interest of wine consumers across the country. Ranjit Dhuru is a true visionary and a very diligent person and I respect his commitment to support us completely in our marketing efforts of their wines. India today can truly stand up and claim quality wines like the rest of the world and it was only natural for Finewinesnmore to help build brand equity for these wonderful wines using it's existing marketing and distribution platform".
Mr. Ranjit Dhuru, Chairman and MD of Château D’Ori wines says, “At Chateau D’Ori we have always given top priority to quality. Finewinesnmore is one of the leading distributors and marketers of imported wines and spirits in India. Dharti is the most dynamic woman entrepreneur I have ever met who has set very high standards for her imported wines portfolio in India and her reach to critical market segments will only help our brand grow further.”
Having chalked out Delhi and Haryana as the initial target markets; Finewinesnmore will take the wines forward to other parts of the country to ensure successful penetration across the Indian wine market. This move will strengthen Finewinesnmore position as a credible guide to assist traders and consumers in the wine selection process and enable them to get quality wines at the right price.
About Finewinesnmore: Finewinesnmore (FWM) is one of the leading importers, distributors and marketers of premium imported wines, spirits and beverages in India. FWM has established itself as a credible, qualitative and innovative player in the Indian wine industry in a short time by building brand equity for its internationally reputed F&B partners and presenting a unique interactive platform (www.fwmclub.com) which brings consumers and producers together to share knowledge and passion in the world of wine and related lifestyle products. FWM is focused on providing an environment for building a community of lifestyle connoisseurs through consistent interactions between consumers and specialists.
About Chateau D’Ori: Chateau D’Ori is the creation of an unusual entrepreneur and wine lover, Mr. Ranjit Dhuru, founder & CEO Aftek Ltd. On the one hand Mr. Dhuru runs a successful, Rs.400 crore multinational IT enterprise. On the other hand, his passion for wines has led him to set up India’s first state-of-the-art winery incorporating features like gravity flow and a fully automated bottling plant. Mr. Dhuru imported and marked in India eight Appellation d’Origine Controlee (AOC) wines. These wines included a Bordeaux Superior, a Medoc, a Graves wine, and three St, Emillion including a Grand Cru.
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More than 350 wines from leading vineyards around the world were tasted ‘blind’ in 2007 by a panel of internationally renowned judges, chaired by and organized in association with Robert Joseph, former Chairman of the International Wine Challenge London.
The two-stage judging process, open to wines of all categories, awarded 17 Gold Winners, 49 Silver Winners, 73 Bronze Winners and 61 Seals of Approval, marques of quality now gaining wide consumer recognition and driving sales. Companies can take part in either the London Stage of the competition (7th-9th October 08) or they can send their entries directly to India to take part in the Delhi Stage (11th-12th November 08).
for more details visit. IFE India 2008
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With an aim to boost the wine industry in the country, the Central government has set up a National Wine Board (NWB) and an ad hoc committee to govern its work.
The decision to this effect was taken at a recently-held meeting, with Rahul Sarin, Secretary, Ministry of Food Processing Industries.
The Board will help tap domestic and export markets, interact with government, policymakers, lay down standards and norms for improving quality and competitiveness and value addition to growers.
The ad hoc committee, formed to govern the work of the NWB, will be headed by Shamrao Chougule, chairman, Chateau Indage. More: Business Standard
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The number of importers has increased from about 35 a couple of years ago to nearly 80, servicing the foreign wine market which touched 220,000 of 9-liter cases in 2007-08 and is expanding at over 30% a year despite the sudden and frequently encountered speed-breakers. Indian Wine Academy conducted an extensive survey for Meininger Wine Business International Germany, in which 44 current importers were studied. Here is a report compiled by Subhash Arora from indian wine academy |
| Distribution of Wine in India
Unrestricted Import of wine and other alcohols has been allowed by the Indian government for over 5 years now. The number of importers has increased from about 35 a couple of years ago to nearly 80 , soon to touch 100 if one considers many new arrivals and the old ones who had stopped importing wine due to stringent laws, heavy duties and a restricted market which is now expanding at over 30% a year.
Distribution Restrictions
The procedure to import remains tightly controlled. The bonded warehouses-public and private, are the initial barriers involving considerable financial investment and bank guarantees.
Excise bonded warehouses and a license is required in each state where the brands have to be registered individually for each label after paying hefty annual license fee. In Delhi alone, the license to sell wine, beer and liquor costs Rs.5.0 lakhs (about € 8,000) annually for the fiscal year which is from April-March. Even if the license is taken for a month the same amount has to be shelled out, before a single bottle can be sold. The re is no separate, cheaper license for wine only.
The two restrictive measures set a sufficient barrier to the new entrants who are generally forced to use the services of existing bonders. The commission payable for these two services alone varies between 10-20% of the cost of wine. This affects the viability of the small importer who is obliged to rent these services.
Yet, the new importers are making a place for themselves for the future expansion. At the break even of 1200-1500 cases annual sales, there are few exits and the number of importers is steadily going up, though there is not enough market for all the labels to thrive.
Leaders in Distribution
Primarily due to the two factors, the new importers have not been able to make a significant dent so far and the old order remains. Brindco, the biggest importer, took the pole position and maintained its leadership; it increased its sales by more than 70% during the last two years, at about 51,000 cases.
Sonarys leapfrogged into the second spot as its own facilities of bonded warehouse helped it reach the number of 24,000 cases annually. Moet Hennessy has been promoting aggressively its Champagne and other wines. With the branding created for Moet & Chandon it has pushed the volumes to 21,000 cases and pipped Global Tax Free Traders to reach the third spot. Global has been stagnating at around 13,000 cases.
Assumptions
The figures and position of the importer in the hierarchy has been determined by conducting a survey among about 40 of the known importers. A major difficulty in assessing the sales in volumes (value is not a feasible criterion, as no official figures are available and there are lots of re-exports. In this nascent stage no importer-big or small is willing to reveal his revenues).
The import figures based on volume are also not easy to come by. Reliability has been made on the figures disclosed by the importer. Each importer was also asked to estimate the volume of the competitors based on their market reach, brand popularity, market penetration etc. Wherever feasible, different staff members and partners were quizzed at different times.
Another tricky factor to consider was the unsold stocks of imports during the year. Although the left-over stocks from previous year would have been sold in the current year too, a factoring was done based on the market conditions to allow for excess left-over stocks this year especially due to the slow down in sales due to Maharashtra imposing heavy excise duties at 200% resulting in practically no sales during July-Nov 2007.
The bulk wine imports have not been included in these statistics. A majority of such wines are bottles as Indian wine and sold as such. Recently Champagne Indage has started importing wine and this will reflect a significant share in the next year's statistics.
Some Interesting Statistics
The total sales of imported wines through legal channels was about 210-220,000 cases in 2007-08 including duty free sales of around 7000 cases nationally. The survey showed higher sales than the generally presumed sales of 180,000-210,000 cases.
The top 3 importers accounted for 96,000 cases which accounted for 44 % sales as compared to 60% about two years ago. The top 5 importers were able to sell a total of 121,500 cases, a share of only about 55 %. It took Top 6 importers to control 60% of the market which the top 3 managed two years ago.
The Top 10 were able to sell 159,000 cases, a 72% share. A further estimation of the next 30 (details not a part of the article) showed a sale of 29,000 cases (13%).
Distribution Pattern
The sales are controlled by each state individually and that will continue due to the constitutional powers. More and more states are allowing the sales through easier channels like supermarkets and stores that sell only wine and beer are given cheaper licenses. Maharashtra, Karnataka, Haryana, Goa and Punjab have a liberal retail policy paving for a continuous growth through these channels. Delhi is still restrictive due to political expediency. Such policies are likely to change the market trends with Retail sector expanding in a big way during the current year
Each state requires wholesalers to have their own excise license. The importer/ distributors must sell their products through these wholesale licensees. Bigger importers like Brindco and Sonarys act as wholesalers in some states while others rely on local wholesalers.
Haryana allows retail sales through a license issued annually through draw of lots. But the retailer must buy through wholesalers who have to get a separate license. The Distributors have to sell through these wholesalers, adding to the cost of distribution.
During the coming years, there will be more sales through the retail channels. With big giants like UK's Berkmann Cellars, UB, and Diageo entering the market and the Indian wine producers like Champagne Indage and Sula stepping up their import activities, the Distribution hierarchy is expected to undergo an overhaul and the next couple of years will be interesting to watch.
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"India is like the last frontier; it has the capability to be the biggest wine market on the planet in volume.": Craig Wedge Although advertising alcohol is forbidden in India, wine gets disproportionate media space, where it is portrayed as a low-alcohol, healthy beverage with a certain cachet, as opposed to the more widely drunk spirits.
It is seen as glamorous, up-market and high society, a trend reinforced by Bollywood stars. Alok Chandra, Vishal Kadakia, Craig Wedge and Neal Ibbotson share with Charmian Smith their insight on the rising numbers of wine consumers in India... for details, read on Otago Daily Times
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The Karnataka government is to implement its new wine policy in the state from August 1. While proposing to ease the rules and reduce the licence fees for setting up new wineries and “wine taverns”, the government has simultaneously sought to increase the cost of importing wines from outside the state from Rs 10 to Rs 300 per litre, thereby increasing costs to consumers by Rs 280 per bottle, and wiping out most wines now being brought in from Maharashtra. for more details Business Standard
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United Breweries is pioneering a special initiative for farmers: The first equity participation of its kind in the Indian wine sector this will ensure for Four Seasons a regular supply of wine-grade grapes, replacing the existing contract-farming model. The company, which has around 600 acres of vineyards through contract farming, will offer 500 shares of Rs10 each per acre of cultivation, said Abhay Kewadkar, chief wine-maker and a director of Four Seasons. "We have already received responses from about 1,000 farmers,” he informs. The size of equity dilution in Four Seasons “will be significant,” though United Spirits Ltd, the spirits company of UB Group, will hold the controlling stake in the wine company.
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June 9 (Bloomberg) -- The U.S. failed to prove that Indian duties on alcohol imports discriminate against products such as Brown-Forman Corp.'s Jack Daniels whiskey, World Trade Organization judges said, after changes to Indian import rules.
``The U.S. has failed to establish that the additional duty on alcoholic liquor is inconsistent'' with Indian commitments at the WTO, judges said in a 182-page report issued today from Geneva. In response to a complaint by the European Union, India trimmed the levies to 150 percent last year.
For More Details bloomberg.com
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Chateau d’Ori plans to expand its wine label overseas with distribution presence in United Kingdom, Japan, United States and South East Asia. The company is presently in advanced level of discussions in United Kingdom to make its wines available there, and plans to target Indian restaurants to initially distribute the wines. The wines will be present in the UK market within the next couple of months, informs Ranjit Dhuru, Chairman, Managing Director, d’Ori Winery Pvt Ltd.
for more details. hospitalitybizindia.com
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NEW DELHI, Jun 03, 2008 (AsiaPulse via COMTEX) -- -- Rapid economic growth coupled with the rising income levels and exposure to the western life style is pushing wine consumption in India.
According to a study published by the UK, wine consumption in India is growing at the rate of 50 per cent per annum and it is expected to touch 17 million litres per annum by 2011 from the six million litres in 2006, thus registering a three fold growth in the segment.
As per the study, wine consumption in India stood at six million liters in 2006 and in the last four years has risen by over four times.
for more details visit www.tradingmarkets.com
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The proposal will help the Rs45,000 crore by sales liquor industry (excluding country liquor) to adopt a uniform retail price for brands across the country
Mumbai: The Union government, with some prodding from liquor lobbies, is considering a uniform tax on liquor across the country, which will result in products being sold at the same retail price anywhere in India.
That’s a significant development in a country where whisky tastes the same in Cudallore in Tamil Nadu or Panipat in Haryana, but is priced differently. That’s because of varying rates of sales tax and excise duty across states. Even the road map to the common goods and services tax (or GST) that the government has been talking about exempts liquor.
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Ivy Brut-wins the same medal as Veuve Clicquot and Perrier Jouet Champagne
Mumbai, May 27, 2008: As a testimony to its standing as one of the finest wine producers in world, Champagne Indage Limited (CIL), India’s oldest and largest, pioneering wine making company has yet again captured global attention. It has bagged several awards and commendations at three world-renowned and acknowledged wine competitions held in London this month: the International Wine and Spirit Competition (IWSC), International Wine Challenge (IWC) and Decanter World Wine Awards (DWWA).
While CIL was the only new world wine producer which was conferred the coveted silver- best in class- award by IWSC, it was also the only Indian wine producer that received commendations by IWC, amongst a vast majority of Indian wines that failed to pass through the first round of tasting.
The main objective of these awards was to promote the quality and excellence of the world’s best wines, spirits and liqueurs. This was achieved through rigorous stages of judging processes by professional blind tasting and detailed (chemical and microbiological) analysis.
Commenting on this achievement, Ranjit S Chougule, Managing Director, Champagne Indage Ltd. said, “This year has been a noteworthy year for us. In addition to these honours and commendations, CIL has experienced large-scale growth and increased patronship for its brands far exceeding expectations. This impetus we've built for Champagne Indage in 2008 will propel our brands into a successful 2009."
The list of awards is:
International Wine and Spirit Competition 2008 (IWSC)
- Tiger Hill Shiraz 2006 received silver medal (best in class)
- Ivy Shiraz 2006 received bronze medal
- Ivy Brut NV, received bronze medal
- Chantilli Chenin Blanc 2007 received bronze medal
- Indage Vineyard Merlot, 2006 received bronze medal
International Wine Challenge 2008 (IWC)
- Chantilli Chenin Blanc 2007 received commendation
- Ivy Brut, NV received commendation
- Marquise De Pompadour received commendation
- Thachi Broken Earth, Cabernet Sauvignon received commendation
- Thachi Broken Earth, Sauvignon Blanc received commendation
- Thachi Broken Earth, Chardonnay received commendation
- South Bay, Sauvignon Blanc received commendation
Decanter World Wine Awards 2008
- Thachi South Bay Sauvignon Blanc 2007 won the bronze medal
- Marquise De Pompadour NV received commendation
- Chantilli Chardonnay 2007 received commendation
- Ivy Merlot 2006 received commendation
- Indage Vineyard Merlot 2006 received commendation
- Chantilli Chenin Blanc 2007 received commendation
- Thachi Red Skies Shiraz 2006 received commendation
Some of the world-renowned brands that also received commendations and awards similar to that of CIL:
IWSC – Silver medal (best in class)
- Tenuta Rocca Vigna Roca Neira Barbera d’Alba 2004
- Rodney Strong Symetry Meritage 2004
- Castel Virginie Reserve 2006
- Champagne Jacquart Demi- Sec Tradition NV
- Charles Heidsieck Brut Reserve NV
- Piper-Heidsieck Rare Millesime’ 1988
- Charles Heidsieck Blanc des Millenaires 1995 Champagnes P&C Heidsieck
- Lanson Noble Cuvee’ brut 1998
IWSC- Bronze Medal
- Veuve Clicquot yellow Label NV
- Perrier-Jouet Grand Brut NV
- Champagne Nicolas Feuillatte Brut Re’serve Particulie’re NV
- Lanson Noble Cuve’e Katarina NV
- Taittinger Les Foiles de la Marquetterie NV
- Robert Mondavi Woodbridge Chardonnay 2006
IWC- Commendations
- Piper-Heidseieck Rose’ Sauvage , France, NV
- Champagne Jacquart Brut Mosaique Vintage , France
- Perrier – Jouet Grand Brut , France, NV
- Tokara Zondernaam Sauvignon Blanc, Western Cape, South Africa.
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About Champagne Indage Ltd.
Champagne Indage Ltd. (CIL) is India’s largest and oldest wine company, established in 1982. With vineyards spread over 2500 hectors, CIL has its facilities in Narayangaon (Nashik), with 20 varieties under cultivation and over 137 varietals under plantation. It has presence across the globe with 10 offices and more than 600 employees.
Winner of 49 International Awards, CIL is the pioneer in producing authentic Indian wines, with more than 36 brands of Red, white and ‘sparkling wines under their umbrella. CIL have been growing at over 100% YOY for the last 2 years, even when the industry is growing at around 30 - 60%. It is the largest producer of wines in India, with a market share of over 75% in premium wines and above 70% overall.
The company has deployed the state-of-the-art technology at its manufacturing facility with the largest wine production facility in India, with a capacity of 15 million litre at Narayangaon with a bottling capacity of 15000 bottles per hour and multiple manufacturing facilities across India, which ensures minimal lead time and consistency in supplies across India.
Champagne Indage Ltd. is the first sparkling wine producing and exporting company of India, exporting to 69 countries across the globe. Their range of exquisite wines like Chantilli, Ivy, the flamboyant Marquise de Pompadour and many more have won several awards ranging from the International Wine and Spirit Competition (IWSC), held annually at London to Wine Style Asia from Singapore to national levels at the INDY’s. It also holds the honour for being listed in the world wine encyclopedia and is revered by wine critiques from Jancis Robinson to Oz Clarke.
About Decanter World Wine Awards
The Decanter World Wine Awards - the most influential wine competition in the world - attracted more entries this year than ever before. In total 9219 wines were entered, more than double the amount entered than when the competition launched just five years ago.
About International Wine Challenge (IWC)
The International Wine Challenge 2008 comprises of 400 plus judges, including their recently appointed 20 expert Panel Chairmen. It is a two-week competition which includes intense tasting of wines from 40 different countries. Each wine is given the time and thought it deserves to guarantee results of the highest standard. The final analysis from their 5 Co-Chairmen ensures that only the best wines succeed.
About International Wine and Spirit Competition (IWSC)
The International Wine & Spirit Competition was founded in 1969 and is the premier Competition of its kind on the international stage. Its aim is to promote the quality and excellence of the world's best wines, spirits and liqueurs. This is achieved through a rigorous two stage judging process of professional blind tasting and detailed (chemical and microbiological) analysis. To ensure perfect conditions the IWSC premises included temperature-controlled cellars and three dedicated tasting rooms.
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Mumbai, May19, 2008: Champagne Indage Limited (CIL), India’s oldest and largest, pioneering wine making company today announced the acquisition of the consolidated assets of Darlington Wines in the UK, a leading independent supplier of wine from around the World in the ‘120 million cases British wine market’ through its overseas subsidiary. The business is fully backward and forward integrated from import of wine under own labels to bottling, warehousing and distribution.
Darlington Wines, over the years has established a reputation for supplying numerous trade channels with the right wines, at the right prices, and with innovative packaging. Their production and bottling facility, Corby Bottlers, is the longest established independent Bag-In-Box wine producer supplying to most of the major supermarkets in the UK, specifically the prestigious J. Sainsbury Group. The company is rated as Europe's most technically competent filler of wine into Bag-In-Box, with expertise in wine handling techniques and imaginative product formats.
The production from Corby Bottlers is transferred to Birbeck House, their 145,000 square feet state-of-the-art warehouse which is capable of handling 500,000 cases at any one time, under custom bond, for distribution throughout the UK, Ireland and Mainland Europe.
Ranjit S Chougule, Managing Director, Champagne Indage Ltd. said, “This is an exciting milestone for our company, and we are looking forward to scaling our growth with this acquisition. The consolidated assets will give us large scale route to market efficiency in a price competitive market such as the UK, not to mention the positive relationships with large institutional buyers. It will undoubtedly drive greater value immediately for our key stakeholders, including our end consumers.”
This latest acquisition by the company will also further strengthen CIL's three Australian acquisitions which took place in the recent past: Thachi wines in 2007 and Loxton winery and VinCrest in 2008, all based out of South Australia. The Thachi brands include - Broken Earth, Red Skies and South Bay that are being rolled out across the globe, including India.
About Champagne Indage Ltd:
Champagne Indage Ltd. is India’s largest and oldest wine company, established in 1982. With vineyards spread over 2500 Hectors, CIL has its facilities in Narayangaon, Nasik and Himachal Pradesh with 20 varieties under commercial plantation and over 137 varietals under nursery cultivation. It has presence across the globe with 10 offices and more than 600 employees.
Winner of 49 International Awards, the company is a pioneer in producing authentic Indian wines, with more than 36 brands of red, white and ‘sparkling wines under their portfolio which covers the lowest to highest price points within the Indian wine market.
The company has deployed the state-of-the-art technology at its manufacturing facility with the largest wine production facility in India, with a capacity of 15 million litre at Narayangaon with a bottling capacity of 15,000 bottles per hour and multiple manufacturing facilities across India, which ensures minimal lead time and consistency in supplies across the country. It has also recently launched a domestically produced vodka brand called 'Just' and 'Carrera xxx' rum.
Champagne Indage is the first sparkling wine producing and exporting company of India, exporting to 69 countries across the globe. Their range of exquisite wines like Chantilli, Ivy, the flamboyant Marquise de Pompadour and many more have won flurry of awards ranging from the International Wine and Spirit Competition (IWSC), held annually at London to Wine Style Asia from Singapore to national levels at the INDY’s. It also holds the honour for being listed in the world wine encyclopedia and is revered by wine critiques from Jancis Robinson to Oz Clarke.
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