The company’s CEO Rajeev Samant specifically addresses Mint Although red wines have traditionally been ahead of the market, temperature and transfer preferences are driving Sula to expand its portfolio, promoting new cities such as roses and urban wine festivals, promoting cooler varieties while scaling down imports in an increasingly crowded space.
Samant noted that consumption in the wider cities has slowed down. Starting in 2020 and until 2023, the company said there was a lot of interest in wine consumption and sales nationwide, but by 2024, the company witnessed a slowdown in consumption. Part of the reason is that consumption in general is slowing down.
“Most or 95% of the segments are consumed in the city centers. Less than 1% of all alcoholic beverages are wine. We have also witnessed a large amount of assets in fiscal 24, both from the retail and consumer homes perspective, which has led to slower growth.”
FY25 is the year to reset the business, he said, but its market share has grown over the past year or so. He added: “We are not going to regain a very strong double-digit CAGR, but we are going to consider a strong singular growth. This is because Alcobev is a very competitive space where wines compete not only with other wines, but with other spiritual categories as well.”
cold drink
“We also had a hot summer and tended to turn to cool drinks. In any case, India has been in a very red wine consumption trend, which is not very suitable for summer consumption.” To expand its wine consumer base, the company plans to hold more urban wine festivals in three to four major cities while doubling its wine portfolio instead of importing.
Although imported wines are growing at a rate equal to or slightly higher than domestic wines, the market is already overcrowded, squeezing profits for importers like them. Over the past 2-3 years, the company has shifted its focus to building its own brand and has been supported by a strong national distribution network. Starting from 16% in 2019, the company’s wine exports are currently down to 2% in FY25.
He said the number of wine importers could increase further with the UK Free Trade Agreement, which could intensify competition in an already crowded market, which would also reduce tariffs on certain wines. “Our superstar range is our range of sources, with prices higher than ₹1200,” he said.
Sula Source is a premium wine series with varieties such as Pinot Noir, Sauvignon Blanc and Rose, currently available in some markets. This year, the company will also expand to other states. “But we still need to ₹700-800 categories, this is where there is no lot of domestic or international competition. ” Samante said.
High-quality white wine
Sula will also focus on the launch of premium white wines in FY26. “We recognize that even in the lower price range, we need to get excited in the category so that we can develop in the whole way.” Today, about 30% of sales come from white wine, while 60% come from red wine and the rest comes from rose wine.
It is sold at prices in categories such as popular, economical, premium and elite. He said 76% of sales that year came from its senior and elite segments, which grew in double-digit growth and value grew beyond the economic scope. The company achieved sales in about one million cases in fiscal 25, with sales down slightly compared to fiscal 24, with value growth mainly concentrated at the lower end of its wine consumption business.
Their elite wine portfolio is priced at a whopping price ₹There are 1,050 figures in markets such as Maharashtra. Overall, its fastest growing market has become Hyderabad, which has been flat in Karnataka and Maharashtra due to external factors such as external factors in the first half of the year and external factors such as state elections and disruption of some local state propaganda in the Pune market. “this ₹2,000 wine categories are less than 2-3% of the total market. ” he said.
Hotel expansion
Thursday night, the company reported consolidated revenue from operations ₹At the end of fiscal 25, 6.193 million, a slight increase ₹Rs 608.6 crore submitted to BSE in fiscal 24. It also reported net profit growth in fiscal settlement ₹702 million, from ₹The previous year was 9.33 million in fiscal year 24. This is mainly due to the increase in stock purchases, almost doubling ₹300 million in fiscal year 23.
The company is increasing the hotel’s footprint. Its luxurious features (sources and others) are manageable, with a total of 104 rooms. The new projects include a 3500-square-foot tasting room in Dindori near the Gujarat border, and a 30-room resort in Nashik, which is expected to be launched in the second half of FY26.
October, Mint Its competitor Grover Zampa Vineyards Ltd has also bet on premiums, introducing a range of high-end wines to cater to changing consumer preferences.
The wine market in India is largely dominated by housing consumption. In 2024, the market’s total revenue was $9.3 billion, $7 billion for home purchases (e.g. supermarkets and convenience stores) and $2.2 billion from outdoor venues (e.g. restaurants and bars).
Key Points
- Sula Vineyards is driving for a while and the pandemic slowed down in urban wine consumption following oversales and cooling demand.
- The company is using its own portfolio instead of imported products, especially its range of sources, and expands its products for quality and elite wines.
- Sula is breaking into new cities through the City Wine Festival to attract consumers, especially when India sees a trend of cool drinks on red wines.
- The increase in competition is driving Sula to focus on its national distribution network and differentiated pricing.
- Sula is expanding its luxury hotel footprint, with upcoming projects including a tasting room in Dindori and a 30-room resort in Nashik.
