Henkell Freixenet grows to €1.3 billion
Henkell Freixenet, the wine and spirits division of Geschwister Oetker Beteiligungen KG, closed 2021 with a sales growth of 11%, with turnover above that of the pre-pandemic level.
CEO Dr. Andreas Brokemper said that “despite major challenges, the past business year was extremely successful…Our `House of Brands`, with which we are consistently continuing our focus on strong global and local brands, was the driver for the double-digit sales growth.”
Freixenet broke the 100 million bottles sold barrier for the first term, and Mionetto grew by a third to 35 million 1/1 bottles. Though the IWSR suggests that Henkell Freixenet is the market leader for Prosecco in 34 countries, it has become the dominant force in Cava sales in 98 countries. Sparkling wine sales overall increased by 15.2% to €843 million.
The company’s strongest region was Germany, Austria and Switzerland (or DACH), where they closed the financial year having seen a 0.3% increase in sales, valued at €464 million. However, it was in Western Europe (which includes the UK, Spain, France, Italy, Benelux and Scandinavia) that they saw a double-digit increase of 16.9% to bring turnover to €402 million. It was noted that the Prosecco portfolio, which includes Freixenet and Mionetto, performed particularly well in the UK.
Much of the rise has been attributed to the reopening of the hospitality industry as pandemic-related restrictions were loosened, and nowhere was this more apparent than the Americas. Overall, net sales increased by 26.1% to €169 million. Prestige brands such as Cava from Segura Viudas and Gloria Ferrer winery in Sonoma performed particularly well in the US, achieving double-digit growth.
Brokemper noted that Henkell Freixenet is “experiencing increased quality awareness in all markets, greater interest in the origins and diversity of wine and sparkling wine.” He also expressed a desire “to serve this increasing interest in enjoyment with our international portfolio, which stands for almost all origins and methods”.
2021 also coincided with the tenth anniversary of the i heart Wines brand developed in the UK. Appropriately, a new sales record of 32.5 million 1/1 bottles was set, an increase on 2020 of 3%. Though the brand performs well in the UK, it is beginning to make significant headway in Scandinavia too.
Looking ahead to the rest of 2022, the company notes that the Russian invasion of Ukraine has caused logistical issues and political uncertainty which present significant challenges. Brokemper stated that “the decisive factor will be mastering the entire supply chain from grape, wine, casing and packaged goods purchasing to delivery to our global customers.” However, though he acknowledges that in the current circumstances “a reliable forecast for the full year is hardly possible”, Henkell Freixenet sees “opportunities in the continuing trend towards higher-quality consumption.”