Sula eyes festivals, premium range after wine sales ease

Dip in red wine demand, growing competition prompt it to boost own labels and cut imports

- Varuni Khosla

After riding a post-pandemic wine boom, Sula Vineyards Ltd and the wine industry in the country are navigating a period of slower urban consumption and changing market dynamics. The company, which dominates the wine business in the country with over 60% market share in certain categories like premium and elite wines, is looking at different ways to reset its focus following a phase of overstocking and cooling demand.

Sula chief executive Rajeev Samant speaking exclusively to Mint said while red wine has traditionally led the market, rising temperatures and shifting preferences are pushing Sula to expand its own portfolio, promote cooler varietals, like Rosé and tap into new cities with urban wine festivals—all while scaling back on imports in an increasingly crowded space.

Samant pointed to a broader urban consumption slowdown. From 2020, and coming out of that, till 2023, the company said there was a big boom in wine consumption and sales across the country, but by 2024, there was a slowdown in consumption that the company witnessed. Part of it was because the general urban consumption slowed down.

“A majority or 95% of the segment, is consumed in urban centres. Just under 1% of all alcoholic beverages is wine. We also witnessed there was a lot of overstocking in FY24, both from a retail and a consumers’ homes standpoint, which led to slower growth,” he said.