Adopting the BYOB programme

Gagan Sharma on the pros and cons of allowing guests to bring personal bottles of wine to accompany a restaurant meal

The Indian excise system is convoluted; working within it can often be difficult. That said, it’s only sensible to change with the times and follow new trends. Some states have embraced change. But bringing a personal bottle of wine to drink in a restaurant is still illegal. It’s time that BYOB or ‘Bring Your Own Bottle’, is adopted in the country in some form. We argue for its plausibility.

Why BYOB? Why now?
COVID restricted us to our homes. Oenophiles could neither enjoy frequent shopping at duty-free outlets, nor exclusive labels available at their members-only clubs, hotels and  restaurants. So suppliers and retail outlets found creative ways to serve their customers directly through online portals for better visibility and easy purchase of their wines. Vishal Kadakia, Wine Park, Mumbai, purveyor of fine wines observes, “The idea of MRP was a new learning. That the choicest wines were available – properly stored – at such affordable prices and home delivered, was a revelation for customers.”

The high mark-ups charged by F&B establishments was exposed. People understandably moved away from these restaurants and patronised them sparingly. So that even now many fine wine dining outlets are struggling to return to their days of glory as people are opting for wine dinners at home. It’s more satisfying than dining out with limited choice of wines at exorbitant prices. Former president of the International Wine & Food Society’s Mumbai chapter, Chintamani Kaigaonkar, well-known wine lover and collector, said, “The high mark-up on premium wines is absurd. Hotels will have to give us a rational explanation to spend that much money on wine.”

Hence, the shift towards introducing ‘corkage’. This is a system where the establishment allows guests to bring their own wine and charges a minimal service fee for its consumption at the restaurant. The practice is prevalent in most wine-friendly countries but not yet in India. Guests can carry their own prestigious bottles allowing them to follow a theme, have informed discussions, and taste labels unavailable in the country.

Why no BYOB?
The argument by the excise policy why BYOB should not be implemented has to do with sourcing. Where were the wines purchased, where were the taxes paid, and where was the wine consumed? Questions were also asked about the inventory of the establishment selling the wines.

However, as Atul Tiwari, Executive Assistant Manager F&B, The Leela Palace New Delhi, points out, “Barcodes can trace a bottle down to its first point of entry into the country, so traceability isn’t a concern.” VAT is paid on the landing price of the bottle. As an importer-cum-distributor in Delhi notes, “The excise department earns exactly the same in either case.”

Even if there were to be a difference, it can be offset by introducing a small licence fee that goes to the exchequer which the establishment could charge under corkage.

“Wine afficionados like talking about their own wine with a good sommelier and the corkage system allows them to bring their bottle for a fee, a win-win situation for, both, the consumer and the restaurant. For a sommelier the excitement of discovering a new label brought by a guest is immense. Think — new varietals, vintages, wine regions, and captivating stories. The idea that a guest can bring a wine from anywhere in the world and the sommelier must do justice to its prestige, will compel him or her to be better informed.

Pulls up the small players
Small eateries and unorganised outlets in B- and C-tier cities, such as homestays in mountain hamlets, heritage properties in Rajasthan or Madhya Pradesh, and the houseboats of Kerala and Kashmir are, together, more in number than the wine-centric establishments of the metros. But they have neither the resilience nor the financial grit to feature extensive wine lists and special stemware or hire someone with the expertise, for example, to uncork a 10-year-old Burgundy. Many don’t even have a liquor licence. A modest corkage fee will open them up to visitors and
bring in additional revenue that wasn’t to come their way.

Rahul More, winemaker and head of Exports at Sula Vineyards says, “The restaurants benefit from the additional visitors as well as higher food sales. They also need not be restricted to their list of basic wines, which at times is the only thing these small establishments can afford to have.”

Wine consumption accounts for less than 1% of all alcobev sales in India, as opposed to the global average of 10%. Europe accounts for 40 litres per person against India’s measly teaspoon. Arjun Sachar, representative for Bordeaux based Tonnellerie Demptos in India, says, “In Europe, you can carry your own wine, pay a corkage and enjoy it. Wineries that don’t have a restaurant, trattoria, or tapas bar, usually take their wines to a nearby establishment and enjoy them with the hosts’ good food by paying corkage, which serves everyone well.”

India is a wine producing nation and deserves a similarly supportive environment.

How good is the corkage system?
There are arguments on both sides of the question. Vishvas Sidana is an acclaimed sommelier at Haoma restaurant, Bangkok, with several well-deserved accolades under his belt. Having worked in India, the US, and now in Thailand, Vishvas is of the view that, “BYOB by paying corkage definitely works for places with good food and an average beverage list. But it may not necessarily be an advantage at places with a highly priced, superlative beverage programme. In Thailand, the terms of corkage are upwards of Thai Bahts 300.

“Given that the guest’s wine is outside of our menu, we charge TBH 2,500, and allow one bottle per reservation, irrespective of the size of the group. The cheapest wine on our list is for TBH 2,800,” he says. With these terms, it makes no sense to bring inexpensive wines and pay a heavy corkage at a top-notch fine wine restaurant.

Back in India, the pertinent question is, would corkage dent Indian wine sales? Rahul More sees it optimistically. “It’ll be good for Indian wines. During COVID, wine drinkers explored premium Indian wines and were converted. The trend will only expand, if corkage comes into play,” he adds.

“It’s a promising idea for India, although challenging for the state excise department to implement,” says Vishal Kadakia. “Deciding the terms of corkage should be the prerogative of the venue.”

Better quality wines that are easily accessible, increased consumption of good wine, experienced wine professionals and sommeliers are some of the promising things that BYOB can bring in. The question is, would corkage dent Indian wine sales? Rahul More sees it optimistically. “It’ll be good for Indian wines. During COVID, wine drinkers explored premium Indian wines and were converted. The trend will only expand, if corkage comes into play,” he adds.

“It’s a promising idea for India, although challenging for the state excise department to implement,” says Vishal Kadakia. “Deciding the terms of corkage should be the prerogative of the venue.”

Better quality wines that are easily accessible, increased consumption of good wine, experienced wine professionals and sommeliers are some of the promising things that BYOB can bring in. The ‘ahaata’ system prevalent in Gurgaon has allowed one to buy a bottle from a neighbouring retail store, and carry it to the ahaata that provides all the services a standalone establishment would.

BYOB is nothing more than extending the same practice to finer restaurants. The superior ambience and service standards that fine-dining outlets offer are definitely desirable and fine wines will continue to be consumed but the two need to go together and the most sensible bridge between them is BYOB and corkage. This change may take time of course, and, most importantly, the excise laws have to recognise and permit it. system prevalent in Gurgaon has allowed one to buy a bottle from a neighbouring retail store, and carry it to the ahaata that provides all the services a standalone establishment would.

BYOB is nothing more than extending the same practice to finer restaurants. The superior ambience and service standards that fine-dining outlets offer are definitely desirable fine wines will continue to be consumed but the two need to go together and the most sensible bridge between them is BYOB and corkage. This change may take time of course, and, most importantly, the excise laws have to recognise and permit it.