Henkell Freixenet Financial year 2021

Henkell Freixenet achieves significant growth

• Double-digit growth to 1.3 billion euros

• Turnover above pre-Covid year 2019

• Record sales Freixenet, Mionetto and i heart Wines

Wiesbaden, 28 April 2022 Henkell Freixenet, the sparkling wine, wine and spirits division of Geschwister Oetker Beteiligungen KG, closed 2021 with a sales increase of 11% to €1,326 million (including excise taxes). With this record turnover, the global sparkling wine market leader (market research institute IWSR) with brands such as Freixenet, Mionetto, Henkell, Mangaroca Batida de Côco  and i heart Wines exceeds the turnover level before the Corona crisis.

"Despite major challenges, the past business year was extremely successful. Led by our top brands distributed worldwide, we were able to grow significantly in practically all regions. 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 sold more than 100 million bottles for the first time, while Mionetto grew by an impressive 33 % to 35 million 1/1 bottles. Henkell also grew double-digit in 2021, led by international markets (+21 %, primarily in Austria and Australia). According to IWSR, we are the market leader for Cava in 98 countries, the market leader for Prosecco in 34 countries and the sparkling wine market leader in 29 countries," comments Dr Andreas Brokemper, CEO of Henkell Freixenet, on the publication of the annual figures.

Driven by the House of Brands, sparkling wine sales increased by +15.2 % to 843 million euros. This led to market share increases in Germany and Spain, among other markets Global sales in the wine segment grew by +1.4 % to 226 million euros, while spirits sales rose by +5.6 % to 232 million euros. The best-selling spirit brand in the Group was once again Wodka Gorbatschow.

DACH region

In Germany, Austria and Switzerland (DACH), Henkell Freixenet closed the 2021 financial year with stable sales of 464 million euros (+0.3 % compared to the previous year).

In Germany, Fürst von Metternich, the leading German premium sparkling wine, once again record sales (13.6 million 1/1 bottles) with an increase of +18 %. Mionetto and 

Henkell also increased significantly. Wodka Gorbatschow, the best-selling German vodka, grew by +2.8 % to 22.5 million 1/1 bottles and Mangaroca Batida once again achieved a double-digit growth.

In Austria, Henkell Freixenet defended its clear market leadership in the sparkling wine segment. With a market share of 15 %, Henkell is closely followed by Kupferberg as the second strongest brand in Austria. In Switzerland, Mionetto and Wodka Gorbatschow achieved double-digit growth. Schloss Johannisberg from Germany's Rheingau region also achieved significant double-digit growth in 2021 and was able to further expand its global reputation with international quality awards.

Western Europe region

Western Europe, the Group´s second strongest region, includes the UK, Spain, France, Italy, Benelux and Scandinavia. Influenced by the recovery of the gastronomy in the Southern European markets starting in 2021, the Western Europe business recorded a double-digit increase of +16.9 % in the financial year and was able to expand its turnover to 402 million euros.

In the United Kingdom, turnover again showed double-digit growth. Freixenet and Mionetto, i.e. the Italian portfolio with Prosecco, rosé sparkling wine and Italian still wines under the Freixenet brand developed particularly well.

Freixenet is thus the leading sparkling wine brand on the English market. Spain and Italy developed disproportionately positively thanks to the reopening of the gastronomy sector. While in Spain Freixenet and Segura Viudas grew by a clear double-digit percentage, in Italy it was Mionetto driving the growth by 25 %. France also gained thanks to Freixenet and Mionetto, but Champagne Alfred Gratien and Gratien & Meyer Crémant also achieved significant increases. Scandinavia and Benelux also contributed to the positive development with successful sales of Mionetto (Nordics) and Mionetto and Freixenet (Benelux).

Eastern Europe region

The Eastern Europe region is characterised by the strong local brands Bohemia in the Czech Republic, Törley in Hungary and Hubert in Slovakia, which each have a market share of more than 60 % in the national sparkling wine market, as well as the dynamically growing import business with the Mionetto and Freixenet brands in Poland. In addition, there are the distribution companies in the Baltic States, as well as in Romania and Ukraine. In 2021, the region's turnover increased by +16.0 % to 240 million euros. Successful contributions included Bohemia Sekt and Mionetto Prosecco in the Czech Republic as well as Törley and Hungaria in Hungary. Hubert de Luxe and Mionetto Prosecco were among the growth brands in Slovakia. In Poland, Mionetto Prosecco developed extremely dynamically and is advancing to become the leading Prosecco brand. The Baltic States also achieved double-digit growth. The growth driver here was Lithuania with the Mionetto and Freixenet brands. Romania also saw double-digit growth with its local brand Angelli as well as with Mionetto Prosecco and spirits. In Ukraine, the business with our international core brands expanded significantly.

Region Americas

Net sales in the Americas region increased by a remarkable 26.1 % to 169 million euros. The important growth region of North and South America benefited from the reopening of gastronomy at its own locations as well.

In the USA, both the global brands Freixenet, Mionetto Prosecco and the prestige brands Segura Viudas and Gloria Ferrer achieved double-digit growth. The wineries Gloria Ferrer in Sonoma and Finca Sala Vivé in Mexico again welcomed more than 200,000 visitors and were thus able to significantly increase sales. In Canada, Henkell Freixenet is the market leader in the sparkling wine market with its Henkell, Mionetto, Freixenet and Segura Viudas brands. The still young group company in Brazil was able to almost double its turnover to 10 million euros, thanks in particular to the success of Freixenet Cava, the Freixenet Wine Collection and Freixenet Mia.

Region Asia-Pacific

The Asia / Pacific region includes the activities of the Henkell Freixenet companies in Japan, Australia and China as well as all other export activities in the region. Overall, the region achieved sales of 39 million euros in 2021, which was -6.8 % below the previous year. Due to Corona-related restrictions, there was a loss of business in Japan at the seasonal peaks. In Australia, following the sale of the Deakin and Katnook wineries, the group is concentrating on the import business with Henkell, Freixenet and Mionetto Prosecco, which is developing positively despite existing container delivery bottlenecks. Henkell sold more than                  1 million 1/1 bottles in Australia for the first time last year.

Global Export

In Global Export, the group combines business with importers and distributors including Global Travel Retail business. Thanks to strong growth in various markets, turnover increased by +128.1 % to 12 million euros. The positive development was driven by the growth of brands such as i heart Wines, Mionetto and Freixenet.

Global core brands

The global core brands developed positively throughout 2021 and thus formed the basis of the Group's overall successful business performance.

Freixenet, by far the strongest brand, exceeded the 100 million bottle mark for the first time. By the end of the year, sales had reached 107.7 million 1/1 bottles (+8.5 %). The positive developments in Freixenet Prosecco and Italian Rosé as well as the newly introduced Italian and Spanish wine ranges contributed to this.

Mionetto Prosecco, the best-selling international Prosecco brand, grew dynamically by +32.6 % to a total of 35.2 million 1/1 bottles in 2021. The increases were distributed across almost all regions and countries. Growth was particularly strong in the USA, Italy, Poland, France, Germany and the UK. The innovations Mionetto Prosecco Rosé and Mionetto 0.0% Alcohol free also contributed to this.

Henkell, the most exported German sparkling wine brand, also achieved double-digit growth of 14.3 % to 12.9 million 1/1 bottles. Besides Germany, growth came mainly from Austria, Australia and Canada. As the namesake of an entire category, Henkell Piccolo in particular contributed to the brand's success with disproportionate growth.

The i heart Wines brand celebrated its 10th anniversary in 2021. In the anniversary year, the wine brand developed in the UK, set a new sales record with 32.5 million 1/1 bottles and an increase of +3 %. In the UK, i heart Wines is now one of the most important wine brands and is also successfully marketed in Scandinavia and in Duty-Free.

Mangaroca Batida de Côco also achieved double-digit growth again. With a clear plus of +23.6 %, the coconut liqueur increased to 2.8 million 1/1 bottles sold. In Germany in particular, the brand was able to make significant gains and continue to expand its market share in the cream liqueur segment.

International Prestige Brands

The International Prestige Brands also made an important contribution, developing positively throughout the business year. Champagne Alfred Gratien, which has been 

produced by a family of cellar masters for four generations, showed equally dynamic growth as its sister brand Gratien & Meyer Crémant from Saumur on the Loire. The same applies to the Spanish premium Cava Segura Viudas and the sparkling wines of the Gloria Ferrer winery in Sonoma, USA. Last but not least, the world's first Riesling winery, Schloss Johannisberg, achieved a double-digit increase in sales of its worldwide highly awarded wine specialities.

"We are experiencing increased quality awareness in all markets, greater interest in the origins and diversity of wine and sparkling wine. And we want to serve this increasing interest in enjoyment with our international portfolio, which stands for almost all origins and methods - from Cava to Champagne, Crémant, Prosecco and German Riesling," comments Dr Andreas Brokemper, CEO of Henkell Freixenet.

Investments

Investments increased significantly by +43.2 % to 26.1 million euros in the 2021 financial year. The new plant construction at Mionetto in Valdobbiadene in the Italian Veneto was completed, and a representative visitor centre is currently being built on the site at the historic location. Further investments follow the group's strategy to increase sustainability and efficiency. 

Employees

The number of employees worldwide in 2021 was 3,499 (2020: 3,494). There were 669 employees in Germany, an increase of 54 employees. The international group companies accounted for 2,830 employees.

Outlook

The economic impact of the Russian war of aggression in Ukraine will be decisive for 2022. In addition to the strong political uncertainty, the war is causing significant price increases and supply bottlenecks throughout the supply chain. The price developments for glass, packaging materials, energy and logistics are particularly burdensome. In addition, wine has become more expensive due to the harvest, and in some cases availability is limited or non-existent. Added to this is the inflation associated with the tense overall situation.

“The decisive factor will be mastering the entire supply chain from grape, wine, casing and packaged goods purchasing to delivery to our global customers. All in all, the year 2022 will present us with enormous challenges,” comments Dr. Andreas Brokemper, CEO of Henkell Freixenet. “We see opportunities in the continuing trend towards higher-quality consumption. We see these in particular in strong brands such as Freixenet, Mionetto and Henkell internationally as well as Fürst von Metternich and Wodka Gorbatschow in Germany. Risks lie in the lack of availability of specialities, above all Champagne Alfred Gratien and Gratien & Meyer Crémant. Finally, the Corona pandemic will still be with us in 2022. Although there are signs that the pandemic is weakening, whether this will be the case and what this means for the economy and purchasing behaviour cannot yet be definitively predicted. Against the background of the current uncertainties, a reliable forecast for the full year is hardly possible.”