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<\/p>\n On an earnings call just a few days ago, Rajeev Samant, chief executive of India\u2019s largest wine brand Sula Vineyards<\/a>, started the conversation by mentioning how revenue from operations was flat in the second quarter of this financial year.<\/p>\n Truth be told, that has been the case with the company for a while. In the last three years, the revenues have stayed relatively flat, ranging between INR 529.6 crore in FY2023, to a high of INR 588.86 crore in FY2024, before sliding back to INR 526.87 crore in FY2025.<\/p>\n Grover Zampa, India\u2019s third largest wine company, meanwhile, has seen a tumultuous three years when their revenue zigzagged from INR 64.4 crore in FY23 to INR 26.1 crore in FY24, and then recovering to INR 64.6 crore last financial year.<\/p>\n Meanwhile, the country\u2019s second largest wine brand, Fratelli, still hasn\u2019t published its numbers for FY25, having grown from INR 196.7 crore in FY23 to INR 215.6 crore in FY24.<\/p>\n It isn\u2019t that wine as a category isn\u2019t growing. It has increased from INR 4,770 crore in CY2023 to an estimated INR 5,630 crore in CY2025, according to Euromonitor International. However, the growth is driven primarily by international brands like Jacob\u2019s Creek. Indian winemakers<\/a> have not been able to drive the market up.<\/p>\n That wasn\u2019t the promise. Indian winemakers<\/a> were supposed to drive the market forward with their more affordable wines. But even after decades, consumption of wine remains a niche in India, one of the fastest-growing alcohol markets in the world. Beer and spirits reign supreme, with wine bringing up the rear, and Indian wine failing to change the scheme of things.<\/p>\n It will really hurt winemakers if it remains a footnote, even after decades of investments in promoting wine culture. So what ails wine consumption in India<\/a>?<\/p>\n OLD HABITS<\/strong><\/p>\n The problems start right at the point of buying.<\/p>\n \u201cConsumers often don\u2019t know what they want. They have an occasion to buy wine for like a gift for someone, they have a price range in mind, but they don\u2019t know the brands, or country type, or the taste profile of the wine,\u201d says Jibin PV, owner of Bengaluru-based alcobev retailer Sling and CEO of BrindCo, importer and distributor of alcoholic beverages.<\/p>\n Vikram Jagdish<\/a>, who has a retail store in Bengaluru St Mark\u2019s Road, says, \u201cThe cases of wines I sell are about one-third of what I sell of hard spirits, and probably less than 1 per cent of what I sell of beers. Consumers walk in, they know if they want a red or a white, but other than that, they are clueless.\u201d<\/p>\n \u201cOne of the biggest challenges in shopping for wine in India is the lack of browsable retail outlets,\u201d says Jibin.<\/p>\n In India most retail outlets are not the kinds one can walk in, browse and ask for suggestions. The alcobev-buying experience in India mostly involves knowing exactly what you want and the entire transaction happening in a couple of minutes flat, where the retailer is generally like a pharmacist, handing you the bottle(s).<\/p>\n Add to this the pricing of the product, and you have a genuine problem. Expecting consumers to spend almost INR 1,000 on a bottle of liquid which they do not know much about and can\u2019t spend time asking questions about is a recipe for no sale.<\/p>\n Even in bars, wine is often a complicated ordering point for Indians. Used to 30 ml or 60 ml alcohol with water or soda, most Indians are just about opening up to the idea of cocktails and more complex flavours while downing their drink.<\/p>\n Another big challenge for wines in India is how they are stocked. The storage conditions at wholesalers\/distributors and retailers impact the quality of the wine.<\/p>\n Proper inventory during summer is a big challenge for retailers, as wine as a category slows down during the hot months. That means it is stocked for a longer duration, thereby occupying space that could be given to fast-moving categories like spirits and beer.<\/p>\n Another challenge to wine drinking is the fact that Indians generally drink before eating, and wine is a paired experience.<\/p>\n AGE & PRICE GAP<\/strong><\/p>\n To complicate things, wine has an age problem too, which in a country with more Gen Z than any other, isn\u2019t ideal.<\/p>\n Gaurav Sekhri<\/a>, cofounder of Fratelli Wines<\/a>, says, \u201cWine is not the first drink you have when you enter the drinking age. It\u2019s a category that is explored once the consumer can afford the price and is somewhat aware of drinking. I don\u2019t think wine will ever be a mass category.\u201d Even then wine is usually reserved for special occasions.<\/p>\n Guru Shivaram, cofounder of Bengaluru\u2019s Bar Spirit Forward, which was ranked 37th in Asia\u2019s 50 Best Bars 2025, says, \u201cUsually when it comes to wines, the consumer behaviour is that they are having it for an occasion or a celebration.\u201d<\/p>\n Shivaram adds that even there, the high prices make wine a difficult choice: \u201cA lot of people don\u2019t want to pay a high price for a drink they don\u2019t understand well. With duties, wine becomes super expensive. If you are getting a bottle of wine in Europe, and if it says 10 euros, it will be five times more expensive in India. So, the filtration starts from there.\u201d<\/p>\n Shivaram believes the consumer behaviour in India around wines is more of a restaurant order, and not bars. \u201cThey would like to pair it with their food and that too when they know about wines.\u201d<\/p>\n This means, despite the lack of market size to challenge spirits, India is flooded with international wine labels\u2014Old World wines from France, Italy, Spain and Portugal, and New World wines from Australia, Argentina, Chile and South Africa. The few premium retail outlets where one can browse have shelves after shelves lined up with them.<\/p>\n Pernod Ricard India, a market leader in premium spirits, is the primary distributor of Jacob\u2019s Creek and G.H.Mumm champagne in the country.<\/p>\n Retailer Jagdish says, \u201cDespite the lack of sales, new wine labels are launched every year.\u201d<\/p>\n This narrows the space for Indian wines further.<\/p>\n Simply put, four decades since Chateau Indage launched its first ever winery in India in 1982, wine somehow is still not getting table or shelf space.<\/p>\n While luxury brands, from hotels to alcobev makers, are all trying to make wine happen in India\u2014be it with the help of sommeliers or chefs pairing each of your courses with the right type of wine\u2014the truth cannot be ignored anymore. Red, white or sparkling, India continues to say no to wine.<\/p>\n LOCAL CHALLENGES<\/strong><\/p>\n For market leader Sula, growth has been flat for years now. The total revenue of the company has been moving in the INR 500-600 crore range since 2023. The company went public in 2022 and is the only listed wine company in the country.<\/p>\n As of 2025, the wine market in India is classified into premium and mass. The premium is accounted for by the likes of Sula, Grover Zampa, Fratelli, Big Banyan by John Distilleries and Krsma Estates. The premium wine market is priced at INR 800+ for a 750 ml bottle.<\/p>\n The mass-segment wine, often termed as port wine or fortified wine, is made from some grapes, added sugar and extra neutral alcohol. These are generally priced at INR 150 and above for a 750 ml bottle. Brands like Goana\u2019s Wines, Villa 89 and Port Wine 1963 dominate this segment.<\/p>\n Sula is looking for growth from elsewhere, and is especially banking on wine tourism. Samant, during his earnings call, told analysts, \u201cThe biggest bright spot is our wine tourism business, which delivered yet another record quarter in Q2, reporting an 8 per cent growth in Q2 and a 15 per cent growth in H1.\u201d<\/p>\n State governments have tried to help. Maharashtra, the wine capital of the country both from production and consumption standpoint, has been working towards changing the retailscape. In 2022, it allowed large supermarkets to sell wines and wine-only retail outlets. In a bid to make wines more accessible, the state charges a licence fee of only INR 5,000 from supermarkets.<\/p>\n However, this is just one state. And that is indicative of the long road ahead for winemakers.<\/p>\n SLOW PROGRESS<\/strong><\/p>\n The potential in India, if the country gets past its retail, pricing and inventory issues, can be understood from the fact that the market size for wine in China is 50 times that of India.<\/p>\n Despite everything, Sekhri is optimistic: \u201cWe are starting from such a low base of consumption that the only way is up. We have seen a pretty interesting growth and correction after Covid. At least in our business, we had double-digit growth for three years after Covid.\u201d<\/p>\n He is also realistic enough to know that a hockey-stick curve is unlikely.<\/p>\n \u201cWe are at 1 tablespoon per capita currently. Can it grow 5x within three-five years? That is not going to happen. And it is not meant to happen also. Wine is not that. Wine is not meant to be that. It\u2019s not beer,\u201d he says. \n <\/p>\n \n <\/ul>\n<\/p><\/div>\n<\/p><\/div>\n <\/p>\n <\/p>\n \n <\/div>\n<\/p><\/div>\n <\/p><\/div>\n On an earnings call just a few days ago, Rajeev Samant, chief executive of India\u2019s largest wine brand Sula Vineyards, started the conversation by mentioning how revenue from operations was flat in the second quarter of this financial year. Truth be told, that has been the case with the company for a while. In the […]<\/p>\n","protected":false},"author":1,"featured_media":316776,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[98],"tags":[145993,11117,5170,136439,1085,145989,145994,145986,145992,18426,145987,145995,145991,145988,145990],"dealstore":[],"offerexpiration":[],"class_list":["post-316775","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing","tag-alcobev-retail","tag-challenges","tag-cultural","tag-etbrandequity","tag-flat","tag-fratelli-wines","tag-gaurav-sekhri","tag-indian-wine-market","tag-indian-winemakers","tag-revenues","tag-sula-vineyards","tag-vikram-jagdish","tag-wine-buying-experience","tag-wine-consumption-in-india","tag-wine-industry-growth"],"yoast_head":"\n<\/figure>\n
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