Dec 17: Wiesbaden- based German sparkling wine producer, which bought a majority stake in the Freixenet Cava in 2018 crossed a turnover of over €1 billion with the merger reflecting results of the first full year in 2019, writes Subhash Arora who thinks Freixenet being imported into India by Aspri Spirits and Wines has a good potential as a Cava market for India with Codorniu and Gramona being the only other labels present
Representing the first full year after the 51% acquisition of Freixenet in Sant Sadurni d´Anoia, near Barcelona, Henkell Freixenet increased its net sales excluding sparkling wine and alcohol tax by to €1.056 billion in the 2019 financial year, a jump of 28% over the previous year, making it perhaps the biggest sparkling producer in the world, with the production presence in Cava, Champagne, Prosecco and Cremant though it also makes still wine and spirits like gin, vodka and brandy.
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With the current 8.5% share in volume (and a 9.7% in value), the company was very close to its target of attaining 10% of the global share. Of course. Like most other wine companies in the world, including those in India, the current pandemic is expected to reduce the revenues by around 15% this year.
Producer of Mionetto Prosecco in Valdobbiadene believes this category will bounce back faster, because it is consumed more on a daily basis. Champagne will need some time more, as it is affected further by a crash in sales in the duty- free circuit thanks to much reduced air traffic.
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Post the merger Henkell Freixenet has become a sparkling wine market leader in 35 countries and the international market leader in Prosecco and Cava, the two largest and most international categories of the sparkling wine market. Group is also the market leader for cava in 104 countries (Freixenet) and for prosecco in 26 countries (Mionetto). It has now its own sales organizations in 30 countries with wineries spread across 11 countries.
Henkell Freixenet CEO Dr Andreas Brokemper reportedly says the company has now bought the remaining 39% stake in the UK distributor Slurp which it had acquired in 2017.
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Freixenet in India
Although Mionetto Prosecco has a minimal presence in India through Hi Spirits and Champagne Alfred Gratien is not imported at all, Freixenet has been imported by Aspri Spirits and Wines for over 5 years. Two basic labels Negro and Brut are available in retail as also at several restaurant outlets. Says Arun Kumar, Director of Aspri ‘it is a well-made value-for-money Cava that we have been promoting with a very good response'. He says that barring the first year that was difficult, they have been recording a growth of around 20% every year. Available in Delhi, Gurgaon, Mumbai, Bangalore, Goa, Kolkata and Haryana including Gurgaon, the price varies from Rs. 1200 in Goa to Rs. 2500 in Mumbai, thanks to the different duties in different states and the Retail and VAT structure. We are making lots of efforts to promote the label and know it has a great future potential.’
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Talking about the change in ownership, Arun says the change has been seamless. ‘We did not feel any difference. The management before and now has been excellent to deal with. A company rep had come to promote the label last yearsFrankly we are very happy to deal with such principals- the transactions are hassle-free on both the ends. They are very responsive and understand the commercial limitations in dealing with India,’ says Arun who knows that the portfolio of the billion dollar majorly sparkling wine producer Henkell Freixenet is really huge but demand for sparkling wines is still limited in India.
Subhash Arora
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