Henkell reveals plans to build new Prosecco winery

The makers of Mionetto Prosecco, Henkell & Co, have reported on a record performance for the 2016 fiscal year, revealing plans to build a Prosecco winery to keep up with demand.

Henkell recorded sales revenues of €691.3 million in 2016, an organic growth of €24.5m, up 3.6% on the previous year.

Henkell & Co.-Gruppe, based in Germany, closed out the 2016 financial year with sales revenue of €691.3 million, an organic growth of €24.5m, up 3.6% on the previous year.

Its international business was the source of nearly 60% of its revenue at €414.1 million, compared with domestic sales which totalled €277.2m. However growth was impacted by fluctuating exchange rates, stemming from the falling British pound and declining spirits sales in the Czech Republic, which it said combined to wipe €22.3m off its revenues.

Reporting on its 2016 financial results this week, the company said its core international brands Mionetto and Henkell Trocken had driven much of its growth, with sales volumes of Henkell Trocken increasing 4% to 1.09 million 9-litre cases.

Mionetto saw sales volumes increase by 8.2% to 1.64 million 9-litre cases, despite recent price increases. To meet growing demand, the group revealed it is building a new winery in Valdobbiadene, due for completion in 2018.

In its domestic market of Germany, the group maintained its position as the country’s leading sparkling wine producer, recording growth for all core brands while shifting away from the low-margin business and repositioning with a more premium offer. Together, its Fürst von Metternich, Mionetto and Menger-Krug brands gained a 5.8% market share taking its share of Germany’s sparkling wine market to 54%. Fürst von Metternich saw the biggest rise, with sales up 6.1% to 0.68 million 9-litre cases.

In Western Europe, Henkell & Co.-Gruppe posted 7.7% growth on a currency-adjusted basis for revenue of 156.0 million euros, driven by Mionetto, which is especially strong in the UK and Benelux.

UK subsidiary Copestick Murray, which it acquired in May 2016, again recorded double-digit growth in local currency, driven by its “i heart WINES” brand and accompanying marketing campaign.

Outside of Europe, the subsidiaries Mionetto USA Inc. and Henkell & Co. Global, recorded growth of 6.4% at €60m, driven in large part by sales of Henkell Trocken and Mionetto brands in Canada, the US and Australia.

Most recently company acquired the coconut liqueur brand Mangaroca Batida de Côco, currently sold in more than 20 countries, in line with its aim of furthering its international profile.