Henkell Freixenet achieves significant increase in sales: double-digit growth to 1.3 billion euros

"Despite major challenges, the past fiscal year was extremely successful. Led by our top brands distributed worldwide, we achieved significant growth in virtually all regions. Our House of Brands, with which we are consistently continuing our focus on strong global and local brands, was the driver of the double-digit sales growth. Freixenet sold more than 100 million bottles for the first time, Mionetto increased by an impressive 33% to 35 million 1/1 bottles. Also Henkell grew at double-digit rates in 2021, above all in the international markets (+ 21%, primarily in Austria and Australia). According to the 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 brands, sparkling wine sales increased by + 15.2% to 843 million euros. This led to market share gains in Germany and Spain, among others. 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. Once again, the best-selling spirit in the Group was Vodka Gorbachev.

DACH Region

In Germany, Austria and Switzerland(DACH), Henkell Freixenet closed fiscal 2021 with stable sales of 464 million euros (+ 0.3% year-on-year).

In Germany , Fürst von Metternich, the leading German premium sparkling wine, once again posted record sales (13.6 million 1/1 bottles) with an increase of + 18%. Mionetto Prosecco and Henkell also made significant gains. Wodka Gorbatschow, the best-selling German vodka, grew by + 2.8 % to 22.5 million 1/1 bottles, and Mangaroca Batida de Côco once again shone with double-digit growth.

In Austria, Henkell Freixenet defended its clear market leadership in the sparkling wine segment as number 1 on the market. With a market share of 15%, Henkell leads the field, closely followed by Kupferberg as the second strongest brand in Austria. In Switzerland, Mionetto and Vodka Gorbatschow achieved double-digit growth. Schloss Johannisberg in the Rheingau region also achieved significant double-digit growth in 2021 and further extended its global reputation with international quality awards.

Western Europe region

The Western Europe region is the Group's second strongest region and includes the UK, Spain, France Italy, Benelux and Scandinavia. Influenced by the 2021 recovery of the catering industry in the Southern European markets, the Western Europe business recorded double-digit growth of + 16.9% in the fiscal year, increasing its sales to 402 million euros.

In the United Kingdom , sales 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, performed particularly well.

Freixenet is thus the leading sparkling wine brand on the UK market. Spain and Italy developed disproportionately well thanks to the reopening of the restaurant trade. Whereas in Spain Freixenet and Segura Viudas achieved significant double-digit growth, in Italy it was Mionetto which grew by 25%. France also made gains 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 characterized by the strong local brands Bohemia in the Czech Republic, Törley in Hungary, and Hubert in Slovakia, each of which has 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, sales in the region rose by 16.0% to 240 million euros. Successful contributions included Bohemia Sekt and Mionetto Prosecco in the Czech Republic, and Törley and Hungaria in Hungary. Hubert de Luxe and Mionetto are 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 overall. 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 and spirits. In Ukraine, business with our international core brands expanded significantly.

Region Americas

Net sales in the Americas region rose by an impressive 26.1% to 169 million euros . The important growth region of North and South America benefited from the reopening of the restaurant trade, including at our own locations.

In the USA , both the global brands Freixenet, Mionetto and the prestige brands Segura Viudas and Gloria Ferrer achieved double-digit growth. The Gloria Ferrer winery in Sonoma and Finca Sala Vivé in Mexico again welcomed more than 200,000 visitors, significantly increasing sales. In Canada, Henkell Freixenet, with its Henkell, Mionetto, Freixenet and Segura Viudas brands, is the market leader in the sparkling wine market. The fledgling group company in Brazil nearly doubled sales to €10 million, thanks in particular to the success of Freixenet Cava, the Freixenet Wine Collection , and Freixenet Mia.

Asia-Pacific region

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 generated sales of 39 million euros in 2021, down - 6.8% on 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 supply bottlenecks. Henkell was able to sell more than 1 million 1/1 bottles in Australia for the first time last year.

Global Export

In Global Export , the Group combines its business with importers and distributors and its Global Travel Retail business. Thanks to strong growth in various markets, sales increased by + 128.1 % to 12 million euros. The positive development was driven by the growth of the i heart Wines, Mionetto and Freixenetbrands.

Global core brands

The global core brands performed positively throughout 2021, forming the basis of the Group's overall successful business performance.

The strongest brand by far Freixenet exceeded the 100 million bottle mark for the first time. At the end of the year, sales were

107.7 million 1/1 bottles (+ 8.5%). The positive developments at Freixenet Prosecco and Italian Rosé contributed to this, as did the newly launched Italian and Spanish wine lines in the wine range.

Mionetto Prosecco, the best-selling international Prosecco brand, saw dynamic growth of + 32.6% to a total of 35.2 million 1/1 bottles in 2021. The increases were spread 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.

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

The brand i heart Wines celebrated its 10th anniversary in 2021. In its anniversary year, the wine brand developed in England 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 duty-free.

Also Mangaroca Batida de Côco was again able to achieve double-digit growth. With a significant increase of + 23.6 %, the coconut liqueur rose to 2.8 million 1/1 bottles sold. In Germany in particular, the brand made significant gains and continued to expand its market share in the cream liqueur segment.

International Prestige Brands

An important contribution was also made by the International Prestige Brands, which developed positively throughout the fiscal year. Champagne Alfred GratienThe International Prestige Brand, which has been produced by a family of master cellarers 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 premiumCava Segura Viudas and sparkling wines from the winery Gloria Ferrer in Sonoma, USA. Last but not least, the world's first Riesling winery, Johannisberg Castle, achieved double-digit growth in sales of its highly awarded wine specialties worldwide.

"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 pleasure interest 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 in fiscal 2021. The new plant construction at Mionetto in Valdobbiadene in the Veneto region of Italy was completed, and a representative visitor center is currently being built on the site at the historic location. Further investments are in line with 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 a key factor in 2022. In addition to the high level of 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 burdening. 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, this means that 2022 will present us with enormous challenges," comments Dr. Andreas Brokemper, Chairman of the Management Board. "We see opportunities in the continuing trend towards higher-value consumption. We see these particularly 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 specialties, above all Champagne Alfred Gratien and Gratien & Meyer Crémant. Finally, the Corona pandemic will continue to occupy 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 behavior cannot be definitively predicted at present. Against the background of the current uncertainties, it is hardly possible to make a reliable forecast for the year as a whole."