Financial year 2022: Henkell Freixenet grows to new record

Financial Year 2022
Henkell Freixenet, the sparkling wine, wine and spirits division of Geschwister Oetker Beteiligungen KG, closed the 2022 financial year with a new sales record thanks to dynamic business development in America. Without excise taxes, revenue increased by + 8.5% to 1.181 billion euros. In a challenging year, Henkell Freixenet was able to continue its growth path and strengthened its position as global sparkling wine leader (market research institute IWSR).

"The focus on strong brands leads to growing market-leading 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. "Currently, we are the market leader for Cava in 104 countries, the market leader for Prosecco in 38 countries, and the market leader for sparkling wine in 33 countries," adds Dr. Andreas Brokemper.

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

With a global market share by value of 9.5% (+0.3% points year-on-year), the IWSR market research institute identifies Henkell Freixenet as the global sparkling wine leader (ahead of the market runner-up with 4.6% and the market third with 4.1%).

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

Western Europe Region
With revenue of 385 million euros, the Western European region, including the UK, Scandinavia, Benelux, France, Spain and Italy, contributes the largest share of the group’s revenue with an increase of + 4.3%. Despite the successful celebration of Bolney's 50th anniversary, the UK was facing a challenging market environment due to Brexit. Italy, Spain and France in particular benefited from the reopening of the gastronomy sector. Mionetto and Freixenet showed strong sales performance. Freixenet attracted 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 "Best of Show Prosecco Rosé" by Mundus Vini, while Alfred Gratien Millésimé won "Grand Gold" at the Berlin Wine Trophy.

Eastern Europe Region
The Eastern European region has formed a significant part of the business for many years. Revenue in Eastern Europe increased by + 9.2% to 210 million euros in 2022. National companies with very strong 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. Driven by Mionetto, the Polish business continues to develop dynamically and is coming closer to Polish sparkling wine market leadership. Sales in the Baltic countries are growing at a good double-digit rate, while Romania grows upper single-digits.

Americas Region
The Americas grew strongly and achieved its highest revenue to date in 2022, with + 28.7% year-on-year growth to a net revenue of 216 million euros. In the USA, Mionetto performed particularly well. In Brazil and Mexico, Freixenet is the growth driver. In the Americas region, we see one of the best growth opportunities for our business today and in the future.

Investments
Capital expenditures reached a new record of 39 million euros with an increase of + 50.2%. The focus was on site development in Italy, whose new visitor center will soon be completed. Purchases of machinery and equipment to expand capacities in Germany, Spain and Eastern Europe also contributed to the significantly increased investment volume. Further capex follow the Group's strategy to enhance sustainability and efficiency.

Employees
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 declines were recorded in Eastern Europe and Asia.

Outlook
In view of the dynamic price increases along the supply chain, the greatest challenge is mastering the entire process from the purchase of grapes, wine, and dry materials until the delivery to customers. Glass in particular became scarce and extremely expensive as a result of the war in the Ukraine. All in all, the price increases at all levels are causing continuing uncertainty among customers, suppliers and consumers, so that the overall conditions for the current year 2023 will remain very challenging.

"As a family business, we believe Henkell Freixenet is well positioned and, despite the numerous challenges, we have planned a slight growth in revenue in 2023 to compensate for the ongoing price increases, especially in raw materials, but also in logistics," comments Dr. Andreas Brokemper.