Sula Vineyards Reports Record Q1 Net Revenue

Sula Vineyards Limited, India’s leading wine producer, released its financial results for Q2 and H1 of FY25, showing record H1 net revenue of Rs 271.7 crore, marking a 3.7 percent year-over-year increase. Growth was primarily led by the Elite and Premium segment, which recorded a 7 percent increase in Q2, with a particularly strong showing outside Maharashtra and Karnataka, driven by states such as Telangana, Madhya Pradesh, and West Bengal. The Elite and Premium segment now accounts for a record 78.5 percent share in Q2, up from 73.5 percent the previous year.

The wine tourism segment also saw growth, supported by a 9 percent increase in per-head spending and a higher occupancy rate of 74 percent, compared to 66 percent last year. In addition, the expanded Bottle Shop at ND Wines is now accessible to wine enthusiasts, with further expansion expected at Domaine Sula near Bangalore in Q3.

For H1 FY25, Sula’s Own Brands posted net revenue growth of 3.7 percent YoY at Rs 271.7 crore, though profitability showed declines attributed to softened consumer demand in urban centers, which account for 90 percent of sales. Disruptions in key markets like Karnataka and Delhi also impacted quarterly results. Nevertheless, Sula’s iconic brands—The Source, RASA, and Dindori—saw double-digit growth within the Elite and Premium range.

Rajeev Samant, CEO said, "We are pleased to report our 10th consecutive quarter of growth in our Own Brands business. However, Q2 FY25 was a subdued quarter, due to a slowdown in consumer discretionary demand, particularly in urban areas where 90 percent of our sales are concentrated, and temporary disruptions in key markets like Karnataka and Delhi."

Sula is observing promising growth in non-core regions, with double-digit increases in states like Telangana, Himachal Pradesh, Madhya Pradesh, Uttarakhand, and West Bengal, underscoring its goal of becoming a truly pan-India brand.

Looking forward, Sula anticipates a positive impact from the festive season, supported by factors such as the re-opening of Andhra Pradesh after five years, the introduction of four new labels in the CSD market, and the return of the SulaFest event at its Nashik vineyards. 

Samant said, "We are confident the long-term Indian wine story remains intact, and we see a long runway of growth ahead of us."

The company’s next earnings call is scheduled for November 13, 2024, where CEO Rajeev Samant and CFO Abhishek Kapoor will discuss further insights and developments.

Alcohol beverage company, Sula Vineyards Ltd's with bids totalling 15.65 billion rupees ($189.63 million), initial public offering was oversubscribed on Wednesday.

By the last day of bidding, investors had offered 43.8 million shares, 2.33 times the supply of 18.8 million shares.

It is focusing on a valuation of up to 29.13 billion rupees in India's first pure winemaker initial public offering (IPO), taking advantage of a surge in consumption as a result of the epidemic in a nation that favours beer, whisky, and national libations.

9.6 billion rupees is the total amount Sula hopes to fund, with 2.88 billion already coming from anchor investors including Goldman Sachs and the Abu Dhabi Investment Authority.

While retail investor subscription was at 1.65 times the amount reserved for them, institutional buyers placed bids for more than 4 times the amount. The IPO's value fluctuated between 340 and 357 rupees.

As people accept wine as a social drink and realise it to be a healthier alternative to spirits in the next years, Sula may experience rapid growth. Compared to the global average of 13%, wine drinking currently accounts for less than 1% of alcohol consumption in India.

On the stock exchanges, Sula will make its debut between December 20 and December 22.

Wine lovers, there is a good news for you all. Now you can enjoy wine in cans, just like beers. Keeping in mind the most convenient recent trend of millenials, Nashik-based, Sula Vineyards launched Dia, a canned wine that will be available in both as red and white wine.

Until now, wines in India were sold in glass bottles with most of the imported brands thereby featuring the alcoholic beverage firmly in the fine and premium category.

The drink frees you from any need of no mixers, corkscrews or swirling to enjoy. It is easy to carry and crack open straight from the fridge. Pour it into a tall glass full of ice with a dash of lime or sip it chilled straight from the can.

It is low in alcohol and perfectly in line with strong beer, both variants, red and white  and are perfect for any hour of the day. Dia is as appealing to both men and women, and suits every occasion, be it a house party, pool party or a day at the beach. It is available in 330 ml can, priced at an MRP of Rs 180. The newly introduced concept of a canned wine matches the on the go needs of every individual’s fast paced life globally. Nielsen Research has reported that off-premise canned wine sales for the 52-week period, ending June 15, 2019, has risen 69 per cent from the previous year, totalling $79.3 million in sales so far in the US.  
 

About Sula Vineyards

Over the years, Sula Vineyards with its taste and perfection has topped the list of every wine lover. Launched in 2000, Sula Vineyards has established itself as one of the best wineries across the globe. Last month the winery also became the first national wine brand to be listed with Tasmac or The Tamil Nadu State Marketing Corporation.

For all the wine lovers in Australia, there is a good news. The Nashik Based winery Sula Vineyards which holds 60% of the market share in India, has added Australia to its export list in partnership with Adelaide-based liquor wholesaler Kismet Trading. Very soon outlets will be retailed in Adelaide followed by Melbourne and Sydney. 

Australia being one of the highest consumer of wine, will now have a choice to taste the most famous Indian wine. Not just this, Kismet Trading, a new liquor wholesaling firm in South Australia specialising in sourcing, marketing and distributing beverage options, will target about 800 venues in the Australian market to list Sula in the menus as an international wine. This would be indeed a great achievement for us. 

Simon Lambert, founder of Kismet Trading, said, “The company is excited to partner with India’s oldest and largest winery Sula Vineyards.”

About Sula Vineyards

Over the years, Sula Vineyards with its taste and perfection has topped the list of every wine lover. Launched in 2000, Sula Vineyards has established itself as one of the best wineries across the globe. Last month the winery also became the first national wine brand to be listed with Tasmac or The Tamil Nadu State Marketing Corporation.

 

India gets its first canned wine, Dia Sparkler. The new canned wine has been launched by Sula Vineyards, one of India’s most popular wine brands, in leading stores across India.

Currently, the Dia Sparkler is being introduced only in Maharashtra. It will soon be made available across the country. Priced at Rs 180, the canned wine is available in both red and white wine flavors in 330 ml cans.

Dia Sparkler has been unveiled at a time when on the go is the need of the hour to match people’s fast-paced lives.

Rajeev Samant, Founder and Chief Executive Officer, Sula Vineyards, said, “At Sula, we are always on the lookout to bring new experiences to our customers. We are thrilled to bring the iconic Dia in a brand new avatar. It is India’s first wine sparkler in a can. Not just convenience, this drink promises all things light, bubbly and refreshing.”

Why Dia was the perfect choice for canned wine?

To date, Dia was sold only in bottles and it was fondly remembered by many as their first wine with positive nostalgia. Dia was the perfect choice for Sula to launch India’s first wine in a can

Dia is a sweet, bubbly and refreshing drink. It needs no mixers, corkscrews or swirling to enjoy. The drink is easy to carry and crack open straight from the fridge.

Dia is quite low in alcohol percentage compared to other alcoholic drinks with total alcohol by volume (ABV) of 8%, which is in line with strong beer. It is as appealing to men as it is to women, and suits every occasion, be it a house party, pool party or a day at the beach.

India’s canned wine category

The concept of wine in a can is blooming globally. The canned wine is widely available in other countries, while this is the first-time wine has been made available in cans in India.

As per a study by Nielsen, the canned wine category in India grew by 67% in May 2019 and is presently clocking in $75 million in sales. The report stated that off-premise canned wine sales for the 52-week period, ending June 15, 2019, have risen 69% from the previous year, totaling $79.3 million in sales so far in the US.  

The wine in a can leads to less wastage and controlled amounts of drinking and convenience. It is also easier to carry around and seems to be perfect for weekend getaways, travel, and picnics.

Sula Vineyards, India's largest wine producer, has launched Sula Wines in China, the world's second-biggest market for wine consumption after the US.

Sula Vineyards is planning to consider Oman as the next country for expansion in the Middle East.

A release from the company said, "Sula Vineyards has over 65% market share in India and exports to 30 countries across Asia, Europe, USA and Canada. China is globally the second most recognized country for its wine market."

The wine producer has partnered with Nanjing Glory International, one of the leading importers and distributors of wine and liquor in China. 

"With a huge territory to cater in China, Nanjing Glory would be initially focusing on select provinces in China where there is a good density of affluent and well-travelled Chinese. The selected areas namely include Jiangsu, Shandong, Shanghai, Zhejiang, Anhui and Hangzhou provinces, with Nanjing being the central location for all supplies. Sula Wines will be introducing the most popular wines from their extensive portfolio which includes Sula Brut Tropicale, Sula Sauvignon Blanc, Sula Dindori Reserve Shiraz and Sula Shiraz. Initially, 200 retail outlets will be targeted which include supermarkets and restaurants in the provinces mentioned," the release stated. 

Rajeev Samant, CEO and Founder, Sula Vineyards, said, "It is very exciting for us to establish our presence in China, world’s No. 2 market for wine after the USA. It is a matter of great pride both to us and nationally because we have an opportunity to impact the import-export ratio of India-China. Now, the Chinese consumer will also have a bottle of Indian wine on their table."

A representative of Nanjing Glory International, added, "We are very happy and excited to partner with the biggest winery of India, Sula Vineyards. It is with great pleasure that we are introducing their wines in our market."

Mumbai-based wine company, Sula Vineyards has appointed Nick Pringle as chief operating officer to overlook company’s strategy and operations.

Rajeev Samant, CEO, Sula Vineyards, said, "Nick brings a wealth of experience from his previous roles at Accolade Wines and AB InBev and is the right person to help steer Sula Vineyards."

Pringle has over 20 years of experience in the wine and spirits industry. Prior to joining Sula, he worked at AB InBev for 12 years. He later joined Constellation to assume a variety of roles and eventually joined Accolade Wines to strengthen Hardys globally in 2011.

At Accolade Wines, Nick was in charge of emerging markets and responsible for travel retail relationships across regions spanning Africa, the Middle East, America, Asia Sub-Continent and Europe.

Recently, the home grown company entered Russia. Sula has over 65 per cent market share in India and exports to over 25 countries across Asia, Europe, the US and Canada.