Fratelli Vineyards Limited · BSE:FRATELLI
Fratelli Vineyards — 9M FY25 Earnings Presentation
44 slides from Fratelli Vineyards's earnings presentation, Feb 11, 2025
Slide 1: Cover letter to BSE: Investor and Earnings Presentation
Date: February 11, 2025 To, The Listing Compliance Department To, BSE Limited The Secretary P. J. Tower, Dalal Street Calcutta Stock Exchange Limited Mumbai – 400001 7, Lyons Range, Kolkata 700001 Scrip Code: 541741 ISIN: INE401Z01019 Subject : INVESTOR AND EARNINGS PRESENTATION Dear Sir/ Madam, Pur
Slide 2: 9M FY25 Results Presentation
9M FY25, Results Presentation February 11th, 2025
Slide 3: Disclaimer
DISCLAIMER This presentation includes forward-looking statements regarding the business, financial performance, strategy, and outcomes of Fratelli Vineyards, as well as the industry it operates in. These statements are subject to risks, uncertainties, and assumptions, which may cause actual results
Slide 4: Contents
CONTENTS Introduction to India’s finest winemaker Our complete portfolio Growth strategy- ready to scale 9M FY25 highlights Journey of growth 5
Slide 5: Introducing India's Finest Winemaker
INTRODUCING INDIA’S FINEST WINEMAKER Actual image of the site 6
Slide 6: Introducing India's Finest Wine Company
INTRODUCING INDIA'S FINEST WINE COMPANY Ownership of Best wines get Where premium Building a wine Family driven, ‘grapes-to-bottle’ made at family run is consumption but professionally value chain vineyards standard lifestyle managed 7
Slide 7: Raising a Glass to the Journey So Far
RAISING A GLASS TO THE JOURNEY SO FAR – BUILT BRICK BY BRICK, OVER THE LAST 16 YEARS… Added 100 acres under active farming in Jambhali, Maharashtra • Sette – India’s • Launch of TiLT - Wine #1 luxury wine was Launch of M/S range • Launch of J’NOON in in a can launched - crafted by wine collaboration
Slide 8: Attributes of a Best-in-Class Wine-Making Business
ATTRIBUTES OF A BEST-IN-CLASS WINE-MAKING BUSINESS Facets of industry Harvesting Moats created by Fratelli Wines Vineyard development associated with significant 15 years of innovation in viticulture and oenology. capital and time investment; select brands matured Adapting best imported varietals to
Slide 9: Our Complete Portfolio
OUR COMPLETE PORTFOLIO 10
Slide 10: Luxury Range
LUXURY RANGE Distinctive brands for special occasions J'NOON is a luxury wine launched in collaboration with Jean Charles Boisset; Only Indian winery to attract international J’NOON J’NOON partnerships Red White Sette is the flagship of Fratelli which is a result of barrel-aged wine nurtured with me
Slide 11: Super Premium
SUPER PREMIUM Master Selection is inspired by the Hariyal, the state bird of Maharashtra Gran Cuvée Brut Approachable blends curated by international experts which showcase the finesse of Fratelli's winemaking capability. Approachable complexity makes it well suited for enthusiasts and experts Gran
Slide 12: Premium
PREMIUM Unique Single varietals made from the finest clones of grapes from France and Italy Cabernet Franc Shiraz Sangiovese Pinot Noir Merlot Cabernet Sauvignon Wide range of 11 offerings across red, white and Shiraz rosé wines The label is inspired from the seven brothers of Fratelli Renovated in
Slide 13: Premium
PREMIUM noi is an easy and approachable sparkling wine which is fruity, vibrant and bubbly noi noi Rosé Especially created to suit the Indian palette Classic range of wines is the entry range of wines into the world of Fratelli Easy and well suited for everyday consumption Classic Shiraz Classic Mer
Slide 14: Value
VALUE Pocket friendly wines creating category difference in various markets Ziva range Mosso Peach Wine Ziva offers a full range of red, white and rosé Strong penetration in interior & T2 markets Mosso – peach wine, launched to cater to specific geographies Kyra Reserve Sidus Port 15
Slide 15: Cans
CANS Market leader in the wine in a can segment India's only Vegan & Gluten Free wine TiLT White TiLT Red Specially targeted to early drinkers, enabling the expansion of wine category TAM Embodies the spirit of fun and spontaneity – made for anyone, anywhere, anytime Noi Spritzer Classico Awarded on
Slide 16: Strong Presence in HoReCa
STRONG PRESENCE IN HORECA Market share in key HoReCa markets* Prestigious listings across HoReCa YTD, December 2024 55% 57% 43% 35% 24% Rajasthan Bengaluru Odisha Kolkata Delhi HoReCa market share YoY* 38% 37% 34% 32% FY21 FY22 FY23 FY24 *B ase d on marke t sh ar e in marke ts w h er e e x cis e da
Slide 17: Growth in Modern Retail & Hospitality to Accelerate Penetration
Penetration in Tier 2 & 3 towns set to increase dramatically GROWTH IN MODERN RETAIL & HOSPITALITY TO ACCELERATE PENETRATION Increase in modern retail outlets will lead to more points of sale* Small-town India now a big draw for major hospitality players Wine is a natural addition to F&B India’s ret
Slide 18: Dynamics of Alcobev Consumption in India
DYNAMICS OF ALCOBEV CONSUMPTION IN INDIA State wise average annual per capita spending on alcohol* Contribution of alcoholic beverages in 100% alcohol CY 2021 Rs. 0 Rs. 550 Rs. 1100 Rs. 1650 12 0% Punja b Rs. 1245 2% 4% 1% 8% H arya na 10 0% Rs. 812 8% 19% Uttar Pra desh 29% 14% Rs. 49 35% 80% R aja
Slide 19: Dynamics of Alcobev Consumption in India
DYNAMICS OF ALCOBEV CONSUMPTION IN INDIA 1,030 12 00 China’s per capita GDP (in $) >> % Projected consumption in FY28 of alcobev within 10 00 2,099 800 population 460 70 600 400 China’s per capita 60 58 Consumption >> 200 154 (in ml) 50 0 1980 2006 2010 40 30 29 20 60 55 11 10 India’s per capita GDP
Slide 20: Drivers of Consumption Trends in India
DRIVERS OF CONSUMPTION TRENDS IN INDIA* Alcohol Urbanization & Rising Rural take consumption Youth Population affluence off trends in Tier demographics Growth 2 & beyond Urban population Growing middle- Rural per capita Tier 2 cities (e.g., Workforce-aged to increase by ~100 class fuels demand consu
Slide 21: Building Vineyard Tourism
BUILDING VINEYARD TOURISM STAY VINEYARD TOUR WINE TASTING WEDDINGS WINE SHOP F&B OFFERINGS 01 Building brand salience 02 Direct-to-consumer sales 03 Margin multiplier 04 Business mix diversification Experience centre & Extending presence to last Elimination of distribution/ Builds new revenue stream
Slide 22: Growth Strategy - Ready to Scale
GROWTH STRATEGY- READY TO SCALE Actual image of the site 01 02 03 04 05 Expanding vineyard Augmenting winery Investing in technology & Developing luxury Introducing new brands, Pinot acreage and cultivation capacity to ramp up automation (Salesforce & vineyard tourism at Akluj Noir, Master Selection
Slide 23: Augmenting Winery Capacity
Augmenting Winery Capacity Commenced operations at the new winery building, reinforcing commitment to excellence and growth 24
Slide 24: Vineyard Development – Jambhali
VINEYARD DEVELOPMENT – JAMBHALI Expanding current net area by 100 acres, aimed towards increasing footprint outside Solapur. Phase I of 40 acres to be completed by H2 FY25 25
Slide 25: Nykaaland, ProWine, Nagpur Wine Fest and Viva La Vino
NYKAALAND, ProWine, Nagpur wine fest and Viva La Vino • Continued consumer outreach initiatives in Q3, participating at key events such as Nykaaland, ProWine, Nagpur Wine Fest, and Viva La Vino • Through these curated events the company continues to strengthen its relationship with the trade, while
Slide 26: TiLT (Bandland & Doon Music Festival)
TiLT (Bandland & Doon music festival) • TiLT has continued its association with 2 music fests this year: o Bandland o Doon Music Fest • Has consistently been successful in initiating sampling and driving discovery for the brand and category, year upon year 27
Slide 27: India's Maiden Experiential Wine & Coffee Bar
INDIA’S MAIDEN EXPERIENTIAL WINE & COFFEE BAR • Our collaboration with Blue Tokai for a wine and coffee experiential bar has been conceptualized as ‘Pour Room’ • Opened doors to the first ‘Pour Room’ at Koramangala, Bengaluru during Q3 • Presently at the soft launch stage, the intent is to further b
Slide 28: Review, 9M FY25
REVIEW, 9M FY25 29
Slide 29: History of Performance
HISTORY OF PERFORMANCE Segment wise contribution to sales (by revenue) FY21 FY22 FY23 FY24 6% 7% 5% 3% 24% 24% 23% 25% 70% 70% 70% 73% Premium Value Cans Delivering consistently superior growth with high contribution to revenues from premium & above • Consistency in contribution from premium & above
Slide 30: Highlights of Performance, 3-Year Trend & 9M FY25 Review
HIGHLIGHTS OF PERFORMANCE, Performance in Rs. Lakhs* 3-YEAR TREND & 9M FY25 REVIEW 21,557 19,672 YTD performance reflects trend of lower consumption 16,678 and impact of higher dry days and revamped excise 14,752 14,378 policies in key States. Company continues to support 10,471 operating excellence
Slide 31: Operational Perspectives to Build a Leadership Business
OPERATIONAL PERSPECTIVES TO BUILD A LEADERSHIP BUSINESS Continued to build a leadership business backed by: • A premium focused portfolio, driving presence in premier and experiential outlets and F&B partnerships • Category expansion through events aimed at driving samplings. Fratelli represents the
Slide 32: Key Highlights of 9M FY25
KEY HIGHLIGHTS OF 9M FY25 Cans category sees 21% YoY improvement in volume terms and 20% in value terms, as the Company invests in expanding the wine category Consistent growth seen in key states during 9M, backed by sustained focus on business development and brand development • Double-digit growth
Slide 33: YTD Financial Table
In Rs. Lakhs 9M FY25 9M FY24 FY 23-24 YTD Net revenue from 14,990 18,262 21,557 FINANCIAL TABLE operations COGS 2,971 4,032 4,879 Gross Profit 12,019 14,230 16,678 Fratelli Wines -standalone results Gross margin 80% 78% 77% • Visible improvement in gross margins YTD, across periods EBIDTA 731 2,865
Slide 34: Investing for the Future
INVESTING FOR THE FUTURE Enhancing Visibility - Boosting brand presence in retail and events Facilitating Consumer Engagement - Attractive POS collaterals and promotions Brand Activation For Trade – Tastings and samplings Lifestyle Events – Collaborated with leading brands such as Forest Essentials,
Slide 35: Listing Timeline
LISTING TIMELINE Shareholders approve As the Holdco, Tinna Fratelli Vineyards’ is now amalgamation of Trade commences engaged in the wine business. Wind-down of Fratelli Wines with process to wind down trading operations nearly Tinna Trade at EGM on trading in agri and non- complete, employees April
Slide 36: Journey of Growth
JOURNEY OF GROWTH 37
Slide 37: Fostering Natural Moats in Business
FOSTERING NATURAL MOATS IN BUSINESS Commanding 30% market share in a market where entry barrier of time is a very strong moat 01 400 acres 02 ~1,000 acres 03 12 varietals under active supported by long imported from farming term contract farmers France Imported 12 grape These varietals were then var
Slide 38: Getting Future Ready
GETTING FUTURE READY Fratelli’s facilities in Maharashtra & Karnataka Within 100 km radius Key enabler in producing quality wines Increasing installed capacity by a third to ~5.4 Mn liters by H2 FY25 Akluj, Maharashtra Canning facilities at Akluj, Maharashtra & 4.8 Mn liters Bijapur, Karnataka Bijap
Slide 39: Translating Principles into Action
TRANSLATING PRINCIPLES INTO ACTION Before After Local employment Resources conservation Mitigating logistics Responsible marketing Deep farmer connect at the Invested in water security 95% of packaging material Building world class brands heart of end-to-end presence and holistic waste domestically
Slide 40: Sustainability Across All Spheres
SUSTAINABILITY ACROSS ALL SPHERES • Fratelli Vineyards has adopted Zilha Parishad School, Shipaiwasti (Khudus) near its winery in Akluj, underscoring a strong commitment to the local community • Implemented a ‘WATER ATM’ system, providing safe, clean drinking water in Garwad village 41
Slide 41: Record of Sustained Performance
RECORD OF SUSTAINED PERFORMANCE FW (FY21 to FY24) PARTICULARS GROWTH DRIVERS CAGR Volume growth backed by higher capacity and Net Revenue 24% better product mix Gross Profit 26% Higher share of premium & above in sales Operating leverage at work. Increasing A&P spends EBITDA 100% to temper margins P
Slide 42: Geared for Progress
GEARED FOR PROGRESS 01 Robust operating model underlining consistent 02 Exercising levers to sustain growth 03 Laying the foundation of the next tier of financial performance momentum performance Family driven and Expanding business Grow vineyard tourism professionally managed, through enhanced busi
Slide 43: Focus of Strategy
FOCUS OF STRATEGY 1 2 3 4 Premiumization Expanding the Building further Developing first through brand total addressable capability in of its kind, luxury building market and wine research to vineyard tourism culture in India improve & hospitality viticulture business 5 6 7 Accent on strong Growing
Slide 44: Thank You
Thank You 9M FY25, Results Presentation February 10th, 2025