The growth in the sparkling wine category shows no signs of slowing, turbocharging the profitability of the newly-formed Henkell Freixenet. Just-released figures reveal that revenue increased by more than 56% in 2018, to revenue of €823.7m ($925.97m). Sales of Grupo Freixenet, acquired by Henkell & Co in 2018, grew by 4.9%.
But the company announced it has even greater ambitions.
“Both Henkell and Freixenet have enjoyed a successful start to the new alliance,” said Dr Andreas Brokemper, spokesperson for the Henkell Freixenet Executive Board, in a statement. “We have set ourselves the goal of selling every tenth glass of sparkling wine worldwide by 2025.”
Henkell & Co grew by 9.3%, taking it to €575.6m, while Grupo Freixenet grew to €248.1m.
The core brand of Mionetto, the world’s bestselling Prosecco, increased sales by 9.7% to 23.9m bottles, in part thanks to sales growth in Eastern Europe, Sweden, the USA and Canada. I Heart Wines, the fastest growing brand in the UK, grew an extraordinary 28.2%, to 19.5m bottles. The range includes both a Prosecco and a Champagne.
Henkell, Germany’s most exported sparkling wine brand, however, saw a sales decline of -3.3%.
Since 1 January 2019, Henkell & Co Gruppe and Grupo Freixenet operate under the Henkell Freixenet umbrella. The Group is represented by subsidiaries in 30 countries, and distributes its brands in 150 countries. The company has announced it wants 10% of the world sparkling wine market by 2025.