Henkell Freixenet grows and expands market shares on international markets

(Wiesbaden, April 16, 2024) Henkell Freixenet, the sparkling wines, wine and spirits division of Geschwister Oetker Beteiligungen KG, closed the 2023 fiscal year with a new record revenue of EUR 1.23 billion (excluding excise taxes). This corresponds to a growth of 4.1 % in net revenue. A good understanding of consumer’s needs, anticipating trends in global markets as well as a consistent focus on strategic brands have enabled Henkell Freixenet to continue its growth path and consolidate its position as the global market leader for sparkling wines in a challenging year (IWSR market research institute).

“We are grateful that consumers have remained loyal to us in a challenging market and competitive environment,” said Dr Andreas Brokemper, CEO of Henkell Freixenet. Disproportionate Growth was achieved in the categories of sparkling wine (+6 %) and spirits (+11 %), with negative growth of -8 % in the wine category.

Strategic growth driven by strong brands and innovations

In 2023, Henkell Freixenet focused on the global expansion of its strategic brands. Freixenet, Mionetto and Henkell increased their share of total sales and thus contributed to the positive development of the company. These brands experimented a strong growth of +6 %. Significant upturns for the internationally successful Freixenet brand (+4 %) and the leading international Prosecco brand Mionetto (+11 %). In addition to the existing portfolio, growth was driven by innovations such as Freixenet Sparkling Wine 0.0%, Mionetto Spumante 0.0% and Mionetto Aperitivo, which matched the trend themes of alcohol-free and Aperitivo.

We also highlight the positive development of other relevant brands in the group, which have registered sales slightly above previous year’s level (+1 %). The French prestige brands Alfred Gratien (+16 %) and Gratien & Meyer (+13 %) recorded outstanding growth and benefited from the high demand for Champagne specialities and the growing Crémant trend. Segura Viudas was affected by customer-driven inventory reductions in its core US market and recorded a decline in revenue (-7 %).

“By focussing on core brands, having a vision for trends such as alcohol-free and aperitifs and the resulting product innovations, we have been able to convince our consumers and expand our market position in many markets,” continued Brokemper, summing up.

Regional developments: worldwide market share gains Henkell Freixenet is continuing to expand its share of many worldwide markets, including Germany, Poland, Canada, USA and Brazil. The DACH and Eastern Europe regions were strong growth drivers in 2023.

– DACH: Double-digit growth of +12 %. In Germany, Henkell Freixenet recorded market share gains in sparkling wine and spirits and maintained its sparkling wine market leadership in Austria.

– Eastern Europe: Positive development in a challenging market environment with revenue up +8 %. Poland grows by +14 % and was able to extend its market leadership in the categories of sparkling wine and non-alcoholic thanks to Mionetto’s strong brand performance (+40 %). The Local Heroes (Bohemia, Hubert and Törley) have developed steadily despite unavoidable price increases.

– Western Europe: Growth of +3 %, largely due to the strong performance of the
3 Mionetto (+5 %), Freixenet (+4 %) and I heart Wines (+15 %) brands. France recorded a growth (+6 %) thanks to Freixenet and Mionetto, which are outperforming the market. Successful site expansion in Italy with the opening of the new Mionetto Visitor Centre and the purchase of Villa Morona in the heart of Valdobbiadene.

– Americas: Revenue decline of -4 %. North American markets were significantly affected by the destocking effects of distributors and monopolies, while in the USA and Canada we were able to gain market share in the sparkling wine market. Significant growth, particularly in South American such as Brazil (+30 %). Expansion of the business by opening an own distribution company in Uruguay.

– Asia-Pacific: Revenue down -17 %. Challenges included exchange rate effects and price competition with local products. Australia recorded a gain in market share.

Outlook
“Volatility will continue and create a challenging economic market environment in the current year. At the same time, we see opportunities relating to our customers’ strong loyalty to our brands and the changing behaviour of Gen Z consumers. The “Aperitivo
moment” and low/no alcohol trends are key opportunities for us,” said Brokemper. “As a family-owned company, we focus on the sustainable development of our global business. By consistently focussing on the needs of our consumers, the highest quality of our products and the expansion of our strong brands, we want to continue our success story in the future.”

“From Spain we face 2024 with some concern due to the uncertainty caused by lack of grapes derived from the severe drought that has been affecting us since 2021 and with special impact in 2023 in the area. of El Penedés”, highlighted said Pedro Ferrer, co-CEO and Vicepresident of Grupo Freixenet. Ferrer adds: “Seeing that the global demand for Cava is booming and that we cannot produce enough bottles to adequately satisfy it in the short term, the situation will be really complicated at all levels; that is why we work together with the sector to guarantee the sustainability of the ecosystem that Cava represents and its fundamental importance in the territory”.