Wine Tourism Contributes To 16% Revenue Surge At Sula Vineyards

EE News Desk Feb 15, 2024

As per a media report, the wine tourism segment (though small), of Sula Vineyards, one of India's largest wineries, witnessed a 16 per cent increase in revenue, fuelled by a higher number of visitors to the company's vineyards in Nashik and Bengaluru, particularly during the extended Christmas weekend.

Aiming for a year-end target of Rs 100 crore, the company is now anticipating concluding the year at around Rs 97-98 crore. Rajeev Samant, MD and CEO, Sula Vineyards expressed satisfaction with the exceptional performance in Q4, noting consecutive record-breaking days that have contributed to the robust financial outlook.

Considering the prospects for wine tourism, Samant shared that the company has numerous upcoming projects and anticipates making announcements in the near future. He emphasised the vast potential in wine tourism, given the limited offerings currently available. Sula stands as the sole player in the field, presenting ample opportunities for expansion.

Samant also mentioned the company's anticipation of the Maharashtra government's wine industrial promotion scheme, awaiting the finer details. As the largest producer, he asserted that Sula would be the primary beneficiary, proportionately benefiting the most from the scheme.

After achieving six consecutive quarters of double-digit growth, Sula Vineyards experienced a slowdown in the October to December 2023 period, with only a four per cent year-on-year increase in revenue. Samant attributed this to a soft market in FMCG and wine during the third quarter but expressed optimism about a return to the growth trend in the fourth quarter. The wine segment, featuring premium brands like Dindori and Rasa, saw a nearly 4 per cent revenue rise during the quarter, constituting 89 per cent of the overall top line for Sula Vineyards.

According to Samant, Sula represents a narrative of premiumisation, highlighting that the company's volume growth in elite and premium wines continues to outpace its economy and popular counterparts.

Emphasising the profitability and market dominance, he pointed out that Sula excels in the Rs 1,000 to around Rs 1,500 price range, where domestic competitors cannot rival. With no imported wines in this category, Sula boasts a remarkable 75 per cent market share in the domestic wine space, standing alone and unchallenged.