• Sanuth Gunasekera’s vision for VA Distilleries

Meet Sanuth Gunasekera, the dynamic member of the director board of VA Distilleries and the chief executive officer (CEO) of VA World, who is not only making waves in the Sri Lankan business world but is also challenging cultural norms surrounding alcohol consumption in the country.

Sanuth currently works alongside his father, who is the chairman of VA Distilleries, in the areas of business development and marketing. However, Sanuth’s passion extends beyond just supporting his family’s business. He aims to change the perception of alcohol consumption in Sri Lanka and bring it to a socially acceptable yet responsible level. Sanuth strongly believes in product differentiation and delivering great local products at a reasonable price to the consumers of Sri Lanka.

He completed his degree from the University of Central Lancashire in the UK and comes from a family of six, being the youngest of the lot. In conversation with The Daily Morning Brunch, he explored his perspective on his role in the company, his vision for the future of VA Distilleries, and his mission to shift the culture surrounding alcohol consumption in Sri Lanka. Here’s what he had to share.

Can you tell us about the history and story behind VA Distilleries?

My father, Vajira Gunasekera, a hardworking, lead-by-example sort of person, started VA Distilleries from the grassroots level up. Being a minister’s son, he used to witness at high-level social gatherings the importance placed on foreign liquor by esteemed personnel which inspired him to create a home-grown product line with similar traits to its international counterparts. With the help of family and friends, he managed to obtain a liquor licence which was under the name AEF Distilleries at the time.

In 2006 AEF was transformed into VA Distilleries and so the magic started. With his impeccable leadership and entrepreneurial capabilities, he managed to bring up VA to be a considerable force to be reckoned with in the local liquor market. A highlighting factor for the success of VA distilleries is how the chairman looks after and treats his employees.

What prompted you to venture into your father’s footsteps, given it is such an offbeat, unconventional and unique career path?

From my younger days, I saw my father as a very simple person. He worked hard to bring this company to where it is now, and I always wanted to figure out why my father didn’t push me to do this and that, perhaps he wanted me to figure it out on my own. His business ethics are incomparable. To understand his uniqueness one can only apprehend it by meeting him in person. A silent guide, he was masterful in balancing his personal life and work. It is a wonderful gift to have your own father as your role model. So, it was a naturally free-flowing transition for me to move into the family business.

Tell us about your core signature range.

We have two key offerings. The first is the foreign liquor range which consists of whisky, brandy, gin and vodka and the second is the local liquor range which contains local spirits such as arracks.

The key brands offered under the foreign category are VA blended malt whisky, XO brandy, London dry gin and AB vodka and the award-winning VA king coconut vodka - the only vodka created by infusing real king coconut and distilled from 100% pure grain spirits. Each recipe is crafted by the chairmen himself. Likewise, the local segment has multiple offerings with key emphasis on the VA black arrack, which is our signature arrack, the North Coast – which is the only Palmyra-based arrack in Sri Lanka and the White Link – a white arrack.

What have been the biggest challenges and achievements so far?

With the current situation in Sri Lanka, the liquor market was hit left and right and many players in the industry had to take radical measures just to survive. However, what I see is that VA held firm along with a few more top competitors. The world will always change, nevertheless, we need to change along with the world.

As a company, we are gaining market share at a rapid pace, purely due to the strategic execution of product management along with an emphasis on innovation. It is very evident by the recent accolade we achieved for the “best innovative distillery” by the Global Consortium of Science and Technology Business Icon Awards 2023. The chairman’s vision of delivering a great product at a reasonable price has been able to dictate terms and conditions in a truly dynamic market.

Due to the pandemic followed by the economic crisis, many distillers are having difficulties sourcing bottles, labels, closures, etc. What has been your experience?

We faced a rapid drop in demand and there was a switch to illegal drugs and illicit liquor by the mass customer segment. Yet, with the chairmen’s business ethics and vision, he did not cut the salaries of employees but even gave bonuses to employees to help with their economic issues. Also, a key supply chain strategy was in a place where we focused on our key products and continued business as usual with them. This provided us with some cash flow during trying times.

What does it mean to you to be an entrepreneur and business owner?

While being under the wing of my father, I also wanted to take some calculated risks and formed my own subsidiary under VA Distillers now known as VA World. The strategy of VA World is to assist its mother company in business development and to help build the brand and corporate identity of VA Distilleries. In hindsight, I believe that I would rather be called an entrepreneur over a businessman, only time will tell.

What’s the number one piece of advice you’d give to anyone wanting to start a business?

There’s no such thing called a side business. It’s just business. Focus on value addition and differentiation. Be unique. Experience and knowledge should go together, but I’m a firm believer in street smarts. Understand people and assign them the correct work. Then monitor and control.

Where do you see VA in the next 10 years?

To be number one in the local market.

What is something you’re working on now that you’re very excited about?

Trade secrets are not to be shared but you will see them soon.