Henkell Freixenet, the sparkling wine, wines & spirits division of Geschwister Oetker Beteiligungen, set a new revenue record of €1.23 billion (excluding excise taxes) for the fiscal year 2023. It represents a rise of +4.1% year-on-year.
Disproportionate growth was achieved in the categories of sparkling wine (+6%) and spirits (+11%), though there was negative growth of -8% for the company in the wine category.
Henkell Freixenet attributed the strong overall revenue performance to a good understanding of consumer needs, anticipating trends in global markets and a consistent focus on strategic brands.
These factors have enabled Henkell Freixenet to continue its growth path and consolidate its position as the global market leader for sparkling wines in a challenging year, the company noted.
“We are grateful that consumers have remained loyal to us in a challenging market and competitive environment,” commented Henkell Freixenet CEO Dr Andreas Brokemper.
Brand performance
Brands which Henkell Freixenet classes as ‘Global Icons’ achieved strong growth of +6% in 2023. Included in this category are sparkling wine Freixenet (+4%) and Prosecco brand Mionetto (+11%).
In the ‘Global Stars’ category growth of +9% was achieved, led by the brand I heart Wines, which achieved double-digit revenue growth (+12%).
‘International Prestige Brands’ slightly exceeded the previous year’s level (+1%). Stand-out performances came from French prestige brands Alfred Gratien (+16%) and Gratien & Meyer (+13%), which benefitted from the high demand for Champagne specialities and the growing Crémant trend, respectively, according to Henkell Freixenet.
However, wine and cava brand Segura Viudas was affected by customer-driven inventory reductions in its core US market and recorded a decline in revenue of -7%.
In the ‘Local Icons’ category, Henkell Freixenet reported positive development of strong local brands in Germany, Czech Republic, Hungary and Slovakia, which collectively grew +8%.
“By focusing on core brands, having a vision for trends such as alcohol-free and aperitifs and the resulting product innovations, we have been able to convince our consumers and expand our position in many markets,” remarked Brokemper.
Regional performance
Henkell Freixenet noted it is continuing to grow its share of many markets across the world, including Germany, Poland, Canada, USA and Brazil. The DACH (+12% year-on-year) and Eastern Europe (+8%) regions were strong growth drivers in 2023.
Western Europe as whole achieved growth of +3%, largely due to the strong performance of the Mionetto (+5%), Freixenet (+4%) and I heart Wines (+15%) brands.
In the Americas there was a revenue decline of -4%, though in the USA and Canada market share increased in the sparkling wine category. There was significant growth in South America, where Brazil led the way (+30%).
The Asia Pacific market saw revenue fall -17%. Henkell Freixenet noted challenges included exchange rate effects and price competition with local products, though Australia recorded a gain in market share.
Brokemper offered this outlook: “Volatility will continue and create a challenging economic market environment in the current year. At the same time, we see opportunities relating to our customers’ strong loyalty to our brands and the changing behaviour of Gen Z consumers. The ‘Aperitivo moment’ and low/no alcohol trends are key opportunities for us.
“As a family-owned company, we focus on the sustainable development of our global business. By consistently focusing on the needs of our consumers, the highest quality of our products and the expansion of our strong brands, we want to continue our success story in the future.” ✈
