Sula Vineyards Q1 Business Update: Wine Tourism up 11% YoY

Sula Vineyards Limited, the largest and only publicly listed wine producer in India, holding a majority share of over 50% in the domestic wine market, has released a robust sales update for the first quarter of fiscal year 2024 (Q1 FY24). The company has achieved its highest-ever net revenues in Q1, encompassing both its Own Brands and Wine Tourism divisions. 

Notably, the Own Brands segment experienced significant growth of approximately 24%, driven by remarkable expansion in the Elite and Premium brands, which showcased an impressive growth rate of around 30%. During this quarter, Sula Vineyards focused on premiumization and consequently divested its lowest-priced Heritage brand, which was exclusively available in the state of Karnataka.

The net revenue for the Own Brands division in Q1 FY24 reached 1,035 million, marking a 24% year-on-year growth compared to Q1 FY23 when it stood at 832 million. Similarly, the net revenue for the Wine Tourism segment in Q1 FY24 amounted to 114 million, exhibiting an 11% increase compared to Q1 FY23, where it was 103 million.

Rajeev Samant, the CEO of Sula Vineyards, expressed satisfaction with the Q1 results, highlighting the consistent double-digit growth achieved by both the Own Brands and Wine Tourism businesses. The company's focus on premiumization has proven successful, with the Elite and Premium wines leading the way in terms of growth. Samant also expressed delight in the Wine Tourism revenues, which grew in double digits, and specifically mentioned a significant 70% rise in visitor numbers to their Domaine Sula winery, located just outside Bengaluru. With an optimistic outlook, Samant stated that the company is off to a great start in the fiscal year and anticipates a strong FY24 as more and more Indians embrace their iconic wine brands, particularly RASA, The Source, Dindori Reserve, and Sula.

Content source: Media reports