Freixenet, the world leader in cava, expects to beat its historical record of bottles sold this year and exceed 110 million, which is between 6 and 7% more than in 2021, in a year in which the brand expects to increase its turnover by around 10% and register a good Christmas campaign again.
The vice president and CEO of this group, Pedro Ferrer, explained in an interview with EFE that, so far this year, sales growth has been around 9%, a percentage that at the end of the year estimates that it will end up being between 6 and 7%, given that at Christmas sales volumes are very large and year-on-year growth is usually lower than in other months.
Of the more than 110 million bottles that Freixenet estimates it will sell this year, 65% will be cava, 25% still wines and the rest prosecco and other sparkling and non-alcoholic wines.
TURNOVER WILL INCREASE BY AROUND 10%
The turnover, whose figure is not provided by the company, could increase by around 10% in 2022, since, in addition to the boost in sales, the company has passed on part of the increase in costs in the current inflationary scenario on its products.
Ferrer stressed that this year the national market “is going very well”, largely because tourism has returned strongly to our country and the restaurant channel no longer has the restrictions it suffered last year due to covid.
“After a difficult 2020 and 2021, 2022 has been a year of recovery,” said Ferrer, since the brand has lived a good summer, autumn “is holding up well” and expects a good Christmas campaign, given that last year was still conditioned by the pandemic, he recalled.
However, and although the group is already above pre-covid turnover levels globally, in Spain normality is expected to recover in 2023.
Freixenet, a company controlled equally by the German group Henkell Freixenet and by Josep Ferrer and Josep Lluís Bonet, sells 85% of its production abroad, most of it to Germany, followed by the United Kingdom, the United States and France, which is becoming a very important market for the group.
In fact, the French market is the first for the Cordón Negro brand, which was recently awarded as the best cava in the world.
In addition, the entry of the German group Henkell in 2018 was an important boost for Freixenet in markets such as Germany and Eastern Europe.
For Ferrer, after the rise in the price of champagne due to the poor harvests that have occurred, “cava once again has a new opportunity” for growth.
In this sense, he pointed out that Freixenet, which is present in some 140 countries, has among its priorities to grow in the Spanish market, where it has a 20% share at Christmas and is the leader in volume of bottles sold.
The launch in Spain of still wines with the Freixenet brand, which began last year with a rosé and a white and has continued this year with a red, “has worked very well” and all the production has already been sold.
TRIPLE THE CURRENT PRODUCTION OF ORGANIC CAVA
The company’s environmental commitment is, among other things, to triple the production of organic cava in about five years, from the current 5% to 15%, approximately.
Immersed in an expansion of the Sant Sadurní cellars, with a planned investment of 30 million euros, Freixenet will dedicate more than one million euros to put solar panels in these facilities to advance in the use of sustainable energy.
According to Ferrer, the priority that Freixenet gives to the environment is demonstrated in the council’s decision that, if 2023 brings a recession and investments have to be slowed down, “everything that has to do with climate change and sustainability goes ahead.”
OPEN TO INCORPORATE NEW BRANDS
Freixenet, the most important and global brand of the Henkell Freixenet Group, to which it contributes approximately 40% of total turnover, continues with the ambition to grow.
“We are always with the antennas on in case an opportunity arises,” said Ferrer, and has assured that, although at the moment there is nothing concrete, they are always looking at dossiers and with conversations underway.
In Spain, the company is interested in buying companies with brands of cava, sparkling wine and wine “powerful and complementary” to theirs to incorporate them into the group.
As in recent years, Freixenet has left behind the ads with Hollywood stars and this Christmas will repeat last year’s announcement, in its usual television campaign.