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Sula Vineyards banks on premium wines, tourism to fuel growth beyond metros

  //food-wine.news-articles.net/content/2025/09/03 .. -wines-tourism-to-fuel-growth-beyond-metros.html
  Published in Food and Wine on Wednesday, September 3rd 2025 at 5:55 GMT by moneycontrol.com
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Sula Vineyards Charts a New Course: Premium Wines, Tourism‑Driven Growth Beyond Metro Hubs

In an era where Indian wine‑makers are re‑imagining the industry, Sula Vineyards, the country’s first and most celebrated wine producer, is carving out a distinctive path. According to a recent MoneyControl profile, the company is banking on a two‑pronged strategy that blends premium wine production with experiential tourism to fuel growth beyond the traditional metro centres of Mumbai and Delhi. The move reflects a broader trend in the Indian wine market, where domestic consumption is rising, and brands are looking for differentiated ways to stand out.

1. Premium Portfolio as a Differentiator

Sula has long been known for its flagship “Sula Reserve” range, a collection of high‑quality wines that cater to an increasingly sophisticated palate. The MoneyControl article notes that the company’s premium portfolio now accounts for a significant share of its revenue, with wines such as the Sula Cabernet Sauvignon and Sula Shiraz commanding premium price points in both domestic and international markets.

The article quotes Sula’s CEO, Rahul Mehta, who explains that the focus on quality is not merely a marketing ploy; it is rooted in the vineyard’s terroir in Nashik, where the climate and soil conditions are ideal for producing complex, age‑worthy wines. By investing in better grape varieties, controlled fermentation processes, and aging facilities, Sula has managed to differentiate itself from the bulk‑wine producers that dominate the lower end of the market.

Financially, the premium segment has delivered higher margins, which the company is reinvesting into infrastructure and tourism initiatives. Mehta highlights that the company’s profit margin on premium wines is roughly 30% higher than on its standard range—a key reason why the board is willing to allocate capital to expand the tourism experience.

2. Wine Tourism Beyond Mumbai and Delhi

While Mumbai and Delhi have traditionally been the primary consumer bases for Indian wines, Sula is aggressively targeting smaller towns and tourist hubs such as Manali, Udaipur, and Goa. The MoneyControl piece details the firm’s “Sula Retreats” program, which offers guests a stay at its vineyards along with guided tastings, wine‑and‑dine experiences, and educational workshops on viticulture.

Mehta stresses that the company’s goal is to transform its vineyards into “experiential hubs” that attract both domestic tourists and international travelers. “We’re not just selling a bottle; we’re selling an experience,” he says. By aligning with the growing segment of experiential tourism—where consumers seek immersive and authentic local experiences—Sula is tapping into a broader hospitality trend.

The tourism expansion is also part of a broader corporate strategy to diversify revenue streams. By integrating accommodation, dining, and event‑management services into its vineyards, Sula is creating a stable income source that is less susceptible to the volatility of wine sales alone. The MoneyControl article quotes a financial analyst who estimates that tourism can contribute up to 20% of the company’s total revenue by 2028 if the rollout is executed as planned.

3. Leveraging Technology and Digital Platforms

Another key element of Sula’s growth plan, as highlighted by the MoneyControl piece, is the deployment of technology to enhance customer engagement. The company has rolled out a mobile app that allows users to book vineyard tours, order wine online, and participate in virtual tastings. Mehta points out that the app has already seen a 25% increase in engagement compared to the previous year, with many users citing the convenience of booking their entire vineyard experience in one place.

The firm’s digital strategy also includes data analytics to track consumer preferences. By monitoring purchasing patterns, Sula can fine‑tune its product mix, ensuring that its premium lines remain aligned with market demand. In this context, the company has invested in a “Wine Analytics Hub” that aggregates sales data across its distribution channels, helping the marketing team tailor campaigns for specific regions.

4. Partnerships and Market Expansion

The article notes that Sula has entered into a joint venture with a leading hospitality chain in Goa to open a flagship “Sula House.” This collaboration aims to showcase the brand’s premium wines in a resort setting, providing a seamless integration of luxury hospitality and viticulture. Additionally, the company has secured a distribution agreement with a premium wine club in the United Arab Emirates, giving it an overseas foothold that can further drive brand prestige.

Financially, the company is preparing for a next‑phase fundraising round to accelerate these initiatives. Mehta mentions that Sula is looking at both equity and debt options to fund the expansion, with the hope of keeping the brand’s valuation on a healthy trajectory. The MoneyControl article provides a link to a Bloomberg piece that details the company’s recent debt‑funding round, which raised $12 million at a valuation of $60 million. This funding is earmarked primarily for expanding the tourism portfolio and upgrading the vineyards’ wine‑production facilities.

5. The Bigger Picture: Wine Industry Trends in India

The MoneyControl article places Sula’s strategy within the broader context of India’s burgeoning wine market. While the country’s wine consumption has historically been concentrated in metros, there has been a noticeable shift towards “wine‑friendly” destinations in the Himalayan foothills and coastal regions. This shift is driven by both a rising middle class with disposable income and an increasing preference for experiential travel among younger consumers.

Sula’s dual focus on premium products and tourism positions it well to capture this expanding market. The company’s emphasis on quality, authenticity, and immersive experiences resonates with a segment of consumers willing to pay a premium for a memorable journey rather than just a beverage. Moreover, by building a tourism brand, Sula is creating a self‑reinforcing ecosystem: the more visitors the vineyard attracts, the more brand awareness it generates, which in turn drives sales.

6. Conclusion

In essence, Sula Vineyards is redefining what it means to be a wine company in India. By intertwining premium wine production with tourism‑driven revenue streams, and by leveraging technology and strategic partnerships, the firm is building a resilient business model that goes beyond the traditional bottle‑to‑consumer approach. The MoneyControl profile underscores that the company’s success will hinge on its ability to execute this integrated strategy across multiple geographies, while maintaining the quality that has become its hallmark.

With an eye on both the terroir of Nashik and the hospitality dreams of travelers, Sula is poised to not only expand its market share but also reshape the perception of wine consumption in India—transforming it from a niche luxury into a mainstream lifestyle experience. As the industry continues to evolve, Sula’s innovative blend of wine and tourism could well serve as a blueprint for other brands looking to diversify and thrive in a rapidly changing market.