Henkell Freixenet reaches new growth record

Henkell Freixenet, the sparkling wines, wines and spirits division of Geschwister Oetker Beteiligungen KG, closed the 2022 financial year with a new sales record thanks to the dynamic growth of the business in the Americas. Excluding excise duties, revenues increased by +8.5% to EUR 1,181 million. In a difficult year, Henkell Freixenet has managed to continue growing and consolidate its position as world leader in sparkling wines (IWSR market research institute).

“The focus on strong brands leads to market growth, leading the positions of our strategic core brands in international markets, increasing the share of focus brands to 70%,” says Dr. Andreas Brokemper, CEO of Henkell Freixenet. “Today, we are market leaders for cava in 104 countries, market leaders for Prosecco in 38 countries, and market leaders for sparkling wines in 33 countries,” adds Dr. Andreas Brokemper.

Global Icons” Freixenet, Mionetto and Henkell grew by +9.7% in 2022, with Mionetto again recording double-digit revenue growth. The “World Stars” I heart WINES and Mangaroca Batida grew by +4.8%, with Mangaroca Batida contributing strongly with double-digit growth, while I heart WINES grew to low single digits. The “Brands of International Prestige” Champagne Alfred Gratien, Gratien & Meyer Crémant, Segura Viudas Cava, Gloria Ferrer Californian Sparkling and Schloss Johannisberg Riesling again recorded double-digit growth of +15.5%, with Alfred Gratien, in particular, benefiting from the high demand for champagne specialties. It is also worth mentioning Gratien & Meyer, which has contributed to the growth of the Crémant category with good results, as well as Segura Viudas, which continues to evolve positively after the renewal of its portfolioSimilarly, “Local Icons” with brands such as Bohemia Sekt, Törley, Hubert Sekt, Fürst von Metternich and Wodka Gorbatschow have recorded total growth. While market leaders Bohemia, Törley and Hubert were able to maintain their strong market positions, Wodka Gorbatschow achieved a new sales record for the fifth consecutive year.

With a global market share of 9.5% (+0.3% points per year), the market research institute IWSR identifies Henkell Freixenet as the world leader in sparkling wines (ahead of the second with 4.6% and the third with 4.1%).

The DACH region (Germany, Austria, Switzerland) continued to perform well in a very competitive environment in 2022, with revenue growth of +3.4% to EUR 318 million. Mionetto Prosecco and Wodka Gorbatschow contributed to the strong performance in Germany, with double-digit growth, while German premium sparkling wine Fürst von Metternich suffered double-digit sales losses after several years of growth due to a supply disruption related to price increases. In Austria, Henkell performed particularly well, extending its market leadership. In Switzerland, Freixenet recorded significant gains, and Mionetto and Wodka Gorbatschow also contributed to growth in Switzerland. Schloss Johannisberg stood out with awards. For example, Schloss Johannisberg ranked 5th among the best wineries in the world in WORLD’S BEST VINEYARDS 2022, while Schloss Johannisberger Goldlack was awarded 100 points by James Suckling.

With revenues of €385 million, the Western Europe region, which includes the UK, Scandinavia, Benelux, France, Spain and Italy, contributes the largest share of the group’s revenue, up +4.3%. Despite the success of Bolney’s 50th anniversary celebration, the UK was facing a difficult market environment due to Brexit. Italy, Spain and France particularly benefited from the reopening of the gastronomy sector. Mionetto and Freixenet obtained a good sales performance. Freixenet captured attention with a relaunch of its premium cava Elyssia, and Mionetto completely updated its range under the joint slogan “Orange Soul” and also launched the new Mionetto Alcohol Free 0.0%. Products from the region also set standards in terms of quality. For example, Mionetto Millesimato Extra Dry DOC Prosecco Rosé “Luxury Collection” was awarded the “Best of Show Prosecco Rosé” by Mundus Vini, while Alfred Gratien Millésimé won the “Grand Gold” at the Berliner Wein Trophy.

The Eastern Europe region has been an important part of the business for many years. Revenue in Eastern Europe increased by +9.2% to EUR 210 million in 2022. National companies with very powerful brands, such as Bohemia in the Czech Republic, Törley in Hungary and Hubert in Slovakia, successfully introduced innovations such as Bohemia Ice Rosé and Hubert Ice to the markets. With the impetus of Mionetto, the Polish business continues to develop dynamically and approaches the leadership of the Polish sparkling wine market. Sales in the Baltics are growing at a good double-digit pace, while Romania is growing in the single digits.

The Americas grew strongly and reached in 2022 its highest turnover to date, with a year-on-year growth of +28.7%, to a net turnover of 216 million euros. In the U.S., Mionetto performed especially well. In Brazil and Mexico, Freixenet is the engine of growth. In the Americas region, we see one of the greatest growth opportunities for our business now and in the future.

Capital outlays reached a new record of €39 million, an increase of +50.2%. The focus was on the development of the site in Italy, whose new visitor centre will soon be completed. Purchases of machinery and equipment to expand facilities in Germany, Spain and Eastern Europe also contributed to the notable increase in investment volume. The new investments follow the Group’s strategy of improving sustainability and efficiency.

The average number of employees increased to 3,564 in 2022. The DACH region had 759 employees, an increase of 72 employees. The number of employees also increased in Western Europe and the Americas, while a decline was recorded in Eastern Europe and Asia.

In view of the dynamic increase in prices along the supply chain, the biggest challenge is to master the entire process, from the purchase of grapes, wine and dry materials to delivery to customers. Glass, in particular, became scarce and extremely expensive as a result of the Ukrainian war. In short, price increases at all levels are causing continuous uncertainty among customers, suppliers and consumers, so that the general conditions for this year 2023 remain a challenge.

“As a family-owned company, we believe Henkell Freixenet is well positioned and, despite numerous challenges, we have forecast slight revenue growth in 2023 to offset continued price increases, especially in raw materials, but also in logistics,” comments Dr. Andreas Brokemper.