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Mint
13-05-2025
- Lifestyle
- Mint
India's Gen Z is drinking less, but drinking better
New Delhi: Young Indians are rethinking how they drink. A rising number of Gen Z consumers are cutting back on alcohol or trading quantity for quality, in line with a global shift towards health and wellness. Data indicates that Gen Z drinkers in India are more inclined to reduce their alcohol consumption compared to millennials, who continue to be the primary consumers of alcohol in India. 'There is a clear decline in alcobev consumption globally, and India is not immune to this trend," said Rajeev Samant, founder and CEO of Sula Vineyards. 'Even when we consider the demographic dividend, we still see people on Instagram advocating for a more alcohol-free lifestyle. Things have definitely changed. Alcohol consumption may not be evolving in the way we once expected." Traditionally, the under-30 age group has never been a major wine-consuming segment, he said. 'That said, this cohort in India today likely consumes more wine, relative to previous generations." According to data from IWSR, a global tracker of the alcoholic beverage industry, the attitude of Gen Z (those over the legal drinking age) towards alcohol in India differs significantly from millennials. 'In our latest Bevtrac report on consumer sentiment in India—Gen Z drinkers who choose to drink less outnumber those choosing to drink more by 5%," said Jason Holway, IWSR senior consultant. In a recent survey of full-strength drinkers, 25% of Gen Z drinkers have never chosen to abstain from alcohol for lifestyle reasons, while 41% have chosen to be away from alcohol for one month or more for lifestyle reasons. "In India, boomers, Gen X, and Gen Z are more likely to choose to drink less rather than drink more (millennials are the exception and continue to drive alcohol consumption)," said Holway. As per IWSR, millennials are the generation in India least likely to choose moderation. Millennials who choose to drink more outnumber those choosing to drink less by 8%. Around 28% of millennials have never chosen to abstain from alcohol for lifestyle reasons, while 36% have chosen to abstain from alcohol for a month or more for lifestyle reasons. While older consumers continue with established drinking patterns, younger legal-age drinkers are actively reshaping norms, he said. This doesn't mean Gen Z is abstaining entirely. With increased exposure to bars, pubs, and live events, younger consumers still drink—but with more restraint and a conscious approach. Take New Delhi-based Kanika Dua, for instance. The 28-year-old has cut down from three to four drinks a night to a maximum of two or three. 'It shows up the next day, and with work starting early, I cannot afford a mid-week binge," she said. The era of guzzling is over, said Alok Gupta, managing director at liquor company Allied Blenders and Distillers (ABD). 'There is a need to consume better—so instead of three large drinks consumers may opt for two nice cocktails. Consumers want to prioritise morning workouts or early morning work commitments," he said. Also Read: Delhi's beer shelves are full—but where are the big brands? Booze break Gupta said growing awareness around health and fitness is influencing beverage choices. "The lens through which they consume F&B (food and beverages) has changed," he explained. "The fitness piece brings focus on better consumption, considering factors like calorie count and protein-carb balance, which extends to both foods and beverages. The concern isn't just about drinking less, but also drinking better, leading to premiumization," he added. Consumers are drinking better quality gin or tequila and even trading up to better whiskey or scotch. There are early signs of the "sober curious" trend among Gen Z, though its impact in India is still marginal compared to countries like the US, Vikram Achanta, founder of Tulleeho, a Delhi-based drinks consultancy said. 'There's talk of younger consumers drinking less, but it's not yet meaningful from a volume perspective. India is insulated from some of the shifts we're seeing in the West," he said. Still, they're more conscious of alcohol content. "A Spritz (with 8-10% alcohol content) might appeal more than a Martini (with 20-35% alcohol content)," he said. Mint earlier reported that a growing number of urban Indians were embracing sobriety or moderation—not necessarily due to heavy drinking but because of health concerns tied to their lifestyles. This rising "sober curious" sentiment is fuelling demand for non- and low-alcohol alternatives. This gave rise to a number of new-age startups, brands like Catwalk Botanics, Sober, Copenhagen Sparkling Tea and others that are focused on either creating or importing products from different markets. Though the category remains under 1% of the broader alcobev market, it is slowly gaining traction in metro cities. Global giants like Heineken and Beefeater have also entered this space. Despite growing moderation trends, alcohol consumption in India is growing. The country, with its large population, remains a large market for alcoholic beverages. The compound annual growth rate (CAGR) of total alcohol beverage industry in India from 2018 to 2023 was over 2%. Also Read: Beer brewers, after two tepid years, raise a toast to a longer, meaner summer According to Gupta of ABD, more legal drinkers are entering the market annually, and evolving social norms have led to greater acceptance of social drinking and increased alcohol consumption among women. Volume growth may slow, but consumer numbers are rising, and they're drinking better, Gupta said. India had 18-19 million first-time voters in the 2024 general election and an estimated 65 million Indians will be of legal drinking age (depending on the region) over the next five years. For brands, the message is clear: engaging with this evolving consumer base is critical. Samant of Sula said, "At festivals like SulaFest, 90% of the audience is Gen Z. So, we're doing our part by introducing more people to at least entry-level wines."
Business Standard
09-05-2025
- Business
- Business Standard
Sula Vineyards Q4 PAT declines 4% YoY to Rs 13 crore; declares dividend of Rs 3.60/sh
The wine producer reported consolidated net profit fell 3.84% to Rs 13.03 crore in Q4 FY25 as against Rs 13.55 crore posted in Q4 FY24. Revenue from operations (excluding excise duty) rose 2.6% YoY to Rs 125.71 crore during the quarter. However, profit before tax (PBT) fell 27.56% to ₹13.56 crore from Rs 18.72 crore in Q4 FY24. EBITDA stood at Rs 28.5 crore, down 3.4% from Rs 29.5 crore in the year-ago period. The EBITDA margin contracted to 21.4% from 22.4% in Q4 FY24. The companys own brand sales stood at Rs 109.6 crore as of 31 March 2025, registering a de-growth of 2.9% on a YoY basis. The wine tourism segment performed strongly, with revenue rising 24.6% YoY to Rs 20.4 crore in Q4 FY25. The growth was supported by the successful SulaFest 2025, improved resort occupancy, and increased guest spending. The companys Elite and Premium brands drove a 5% YoY growth in overall sales. The elite category alone rose 17%, led by demand for The Source and RASA. These segments contributed a record 77.1% to total wine sales in FY25 and 75.5% in Q4 FY25. For the full year, Sulas net profit declined 24.77% to Rs 70.20 crore, despite a 2.01% increase in revenue to Rs 579.15 crore in FY25 compared to FY24. Rajeev Samant, CEO of Sula, said, We are pleased to report our highest-ever revenue from operations in both Q4 and FY25. However, Own Brands sales were relatively subdued in Q4, impacted by urban consumption slowdown, lower WIPS credit, export contraction, and temporary retailer destocking in Uttar Pradesh and Uttarakhand. Despite these challenges, several markets, including Haryana, Rajasthan, Chandigarh, and Assam, along with CSD, delivered strong double-digit growth, supporting our pan-India brand vision. The Source range also posted robust double-digit growth in Q4 and FY25, strengthening our Elite portfolio. Our wine tourism segment saw 25% YoY growth in Q4, driven by SulaFest25 and strong resort performance. Profitability remained stable, supported by continued focus on overhead optimization. Meanwhile, the board has recommended a final dividend of Rs 3.60 per equity share (face value Rs 2) for FY25, subject to shareholder approval at the upcoming Annual General Meeting. The record date for determining eligible shareholders is May 23. Sula Vineyards is principally engaged in the business of the manufacture, purchase, and sale of premium wine and other alcoholic beverages. Shares of Sula Vineyards rose 0.98% to Rs 273.35 on the BSE.
Reuters
08-05-2025
- Business
- Reuters
India's Sula Vineyards' quarterly profit drops on weak urban consumption
May 8 (Reuters) - India's biggest winemaker Sula Vineyards ( opens new tab reported a nearly 4% fall in fourth-quarter profit on Thursday, hurt by a prolonged slowdown in urban consumption. Demand for discretionary goods remains weak in Indian cities and towns due to high living costs and sluggish wage growth, despite easing inflation. Sula gets about 90% of its revenue from urban markets. The company's consolidated net profit fell to 130.03 million rupees ($1.5 million) in the quarter ending March 31, from 135.5 million rupees a year ago. The continued slowdown in urban consumption and short-term destocking in a few states were among reasons for subdued sales in the quarter, Chief Executive Officer Rajeev Samant said. The winemaker's own brands segment, which contributed to 82% of the total revenue, saw a 2.9% decline in revenue during the quarter. Its smaller wine tourism segment saw a 24.6% increase in revenue, mainly driven by sales from its "Sulafest" in February. Total revenue rose marginally to 1.33 billion rupees from 1.32 billion rupees a year ago, while total expenses rose about 3% to 1.21 billion rupees. Sula's core profit margin contracted to 21.4% from 22.4% a year ago. ($1 = 85.3990 Indian rupees)
Mint
08-05-2025
- Business
- Mint
Sula resets after wine boom slows, shifts focus to homegrown brands
NEW DELHI : 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. The company's CEO 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 Rose 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. Also Read: Scotch and gin may not get significantly cheaper for consumers in India despite tariff cuts: Industry "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. FY25, he said, was a reset year for the business, but it has grown its market share over the last year or so. "We won't return to a very strong double-digit CAGR growth, but will look at a strong single-digit growth. This is because alcobev is a very competitive space, and wine doesn't just compete with other wines but also other spirit categories," he added. Cold drinks "We've had a hot summer as well, and there is a tendency to move towards cooler drinks. India has been on a very red wine consumption trend in any case, which doesn't lend itself very well to summer consumption," he added. To expand its wine consumer base, the company plans to launch more urban wine festivals in three to four major cities while doubling down on its own wine portfolio instead of imports. Although imported wines have grown at a pace equal to or slightly faster than domestic wines, the market has become overcrowded, squeezing margins for importers like them. Over the past 2-3 years, the company has shifted its focus to building its own brands, supported by a strong national distribution network. From 16% in 2019, the company's wine exports are now down to 2% in FY25. He said the number of wine importers may rise further with the UK free trade agreement, potentially intensifying competition in an already crowded market, which will also cut down duties on some wines. "Our superstar range is our Source range, which is priced upwards of ₹1,200," he said. Also Read: Tequila sees a sunrise as Indians move on from gin. The whisky love affair continues Sula Source is a premium wine line with varieties like Pinot Noir, Sauvignon Blanc and Rose, which is currently available in a few markets. This year, the company will expand to other states as well. "But we need to also be very strong in the ₹700-800 category, which is where there won't be a lot of domestic or international competition," Samant said. Premium white wine Sula will also focus on a premium white wine launch in FY26. "We took cognisance of the fact that we need to create excitement in the category, even at the lower price point range, to be able to grow across the board," he added. Today, about 30% of its sales come from white wine, while 60% comes from red wine, and the remaining from Rose wines. It sells in categories like popular, economy, premium and elite. A good 76% of its sales in the year came from its premium and elite segments, with the latter growing in double digits, and is also growing in value, overtaking the economy range, he said. The company achieved sales of around a million cases volume in FY25, which showed a slight decline compared to that of FY24, with value de-growth mainly focused on the lower end of the wine consumption business. Their elite wine portfolio, which is priced upwards of ₹1,050 in markets like Maharashtra, grew by double digits. Overall, its fastest growing market has become Hyderabad, and it saw flat growth in Karnataka as well as Maharashtra, which saw some degrowth due to external factors like general and state elections in the first half of the year and some localised state-prompted disruptions in the Pune market. "The ₹2,000 wine category is less than 2-3% of the total market," he said. Hospitality expansion On Thursday evening, the company reported a consolidated revenue from operations of ₹619.3 crore at the close of FY25, growing marginally over ₹608.6 crore in FY24 in its filing to BSE. It also reported a de-growth in net profit for the fiscal closing at ₹70.2 crore, from ₹93.3 crore the year prior in FY24. This was largely on the back of an increase in the purchase of stock, which nearly doubled to ₹30 crore in FY25. Also Read: Indian Hotels plans ₹1,200 crore investment for FY26, eyes sustained growth The company is increasing its hospitality footprint. Its luxury properties—The Source and Beyond—which it manages, offer a combined 104 rooms. New projects include a 3,500 sq. ft. tasting room at Dindori, near the Gujarat border, and a 30-room resort in Nashik, expected to launch in the second half of FY26. In October, Mint reported that its competitor, Grover Zampa Vineyards Ltd, was also betting on premiumization, introducing a range of high-end wines to cater to changing consumer preferences. India's wine market has largely been dominated by home consumption. In 2024, the market generated a combined revenue of $9.3 billion, with $7 billion from at-home purchases (e.g., supermarkets and convenience stores) and around $2.2 billion from out-of-home venues (e.g., restaurants and bars). Key takeaways
