In an ever-evolving wine market, consumer preferences are increasingly leaning toward premium, sustainable products, and the tastes of Gen Z are reshaping industry strategies. To gain insights into how a leading wine company navigates these trends, we spoke with Robin Copestick, Managing Director of Freixenet Copestick. With a portfolio that includes renowned brands like Freixenet, I Heart Wines, and Mionetto, Robin shares the company's strategies for staying ahead in a competitive market, their commitment to sustainability, and leveraging technology to enhance consumer engagement.

Image: Proseccos from Freixenet, I Heart Wines, and Mionetto

Robin, consumer trends in the wine business have shifted significantly, particularly toward premium, sustainable goods, and the preferences of Gen Z consumers. How has Freixenet Copestick responded to these trends, and what strategies have you found most effective in meeting evolving customer demands?

In the UK we are faced with macro factors such as the cost of living crisis, health, and increased choice having an impact on wine and sparkling wine consumption.  Our category vision highlights opportunities across 5 platforms encompassing, making wine relevant, mindful consumption, wine for all occasions, exploration and discovery, and wine lovers club to identify opportunities for the wine category to drive sustained growth.  Within our portfolio, we have a breadth of brands that are positioned across different price points to suit different consumers and occasions.   We offer product selections in different formats (e.g. 20cl / bag in boxes) as well as alcohol-free variants to support mindful consumption.  We encourage recycling and up-cycling of our bottles and all POS that we use in-store is recyclable and made from a high % or fully recycled card.

Image: (L-R) Personalised I heart Prosecco bottles and Italian Sparkling Rose & flowers gift set

We also look to add value to our brands through gifts with purchase at key times of the year (e.g. Valentine’s Day) and within our portfolio (e.g. Freixenet) we have also championed spritz and cocktail serves with our customers through social media communications, in-store/online partnerships and on trade collaborations.

With the increasing importance of digital transformation in the beverage industry, how is Freixenet Copestick using technology and data analytics to improve its market positioning and consumer engagement?

We utilize media analytics to fully understand and define our target audiences across the different brands.  This data also enables us to understand the different media platforms across which our target audience is spending time and where it is most effective to support our brands.

We also utilize social media listening and engagement levels to assess what resonates in terms of posts, activity, etc.

Our eComm is supported by a full suite of analytics which gives us in-depth detail into customer behaviour and promotional effectiveness.

The 'House of Brands' strategy at Henkell Freixenet has been a key driver of growth, shown by the success of brands like Freixenet, I Heart Wines, and Mionetto. How has this strategy evolved, and what unique challenges and opportunities have you encountered in managing and promoting these brands across diverse global markets?

The wine category is extremely competitive in the UK but with our portfolio of brands, we are perfectly placed to offer choice both in terms of different options (prosecco, cava, crémant, still wine, etc) but also across different price bands in order to suit different consumers and/or occasions.  We work closely with our retailer partners to devise plans throughout the year that best serve the consumer and brands.  Clear communication, campaigns, and investment helps us to differentiate the brands and support the overall category.

Henkell Freixenet focuses on the global expansion of its strategic brands, especially the three Global Icons Freixenet, Mionetto, and Henkell, the Global Stars (I heart Wines, Mangaroca Batida) as well as our International Prestige Brands (e.g. Alfred Gratien, Gratien Meyer or Segura Viudas). The “House of Brands” increases its share of total sales steadily and makes a significant contribution to the positive development of the company. 

Image: Freixenet's brand portfolio includes sparkling wines – Sekt, Cava, Prosecco, Champagne, and Crémant – exquisite red and white wines.

With this unique portfolio of brands, Henkell Freixenet can offer the full variety of sparkling wine categories such as Cava, Prosecco, Crémant, Champagne, and Sekt and can perfectly serve different consumer needs and consumption occasions. Also, by focussing 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 market position in many markets.

Image: House of Brands

Innovations such as Mionetto Spumante 0.0% and Freixenet Sparkling Wine 0.0% reflect the rising trend of alcohol-free products. How do you foresee the no/low alcohol segment evolving, and what role will Freixenet Copestick play in this growing category?

Alcohol-free forms an important part of our mindful consumption pillar as identified within our Category Vision.  The alcohol-free Wine segment continues to show strong YOY growth in the UK at +20% albeit still from a relatively small base and we are seeing Freixenet white 0.0% growing ahead of the segment at +27% YOY (Circana data to 17/3/24).  We see growth continuing within this segment as consumers continue to adopt a more conscious approach to mindful consumption of alcohol.  The quality of both Mionetto 0.0% and Freixenet 0.0% is superb and leading the way within the alcohol-free wine sector in terms of improving quality perceptions within this segment. 

The launch of Mionetto Aperitivo taps into the Aperitivo trend. Can you share insights into how consumer preferences are shifting towards these types of products and how you intend to leverage these trends?

The aperitivo occasion has evolved and been widely adopted over the last 3-5 years.  It has evolved from an established drinking moment to a broader occasion and although several products can and have played in this arena (sparkling wine, beer, G&T, etc), Aperitivo products are now gaining increased traction and share of these occasions.  The category is in strong YOY growth and we believe we have a fantastic suite of products to best suit consumer expectations and requirements.  With a range across alcohol and alcohol-free, developed from a special Italian recipe, 100% natural flavours and combined perfectly with Mionetto Prosecco or Mionetto 0.0%, the Mionetto Aperitivo Collection delivers a perfectly balanced spritz made to perfection.

Image: Cocktails-based Mionetto Aperitivo 0% Alcohol.

Your recent distribution partnership with Wakefield Wines is part of a broader strategy to diversify your portfolio with blue-chip wineries. How do these partnerships enhance your overall distribution capabilities and market presence?

They complement our existing distribution and provide us with a more complete and comprehensive portfolio across the sparkling and still wine categories. This provides a full portfolio of solutions to our customers and makes Freixenet Copestick one of the top wine suppliers in the UK and Ireland.

Image: Gold Winning brands from Wakefield wines at 2024 London Wine Competition, (L-R) The Pioneer Shiraz, St. Andrews Cabernet Sauvignon, St. Andrews Shiraz, St. Andrews Chardonnay, St. Andrews Riesling

Henkell Freixenet has reported strong growth in regions like DACH and Eastern Europe. What specific strategies have contributed to this success, and how do you plan to sustain this growth amidst potential economic volatility?

A good understanding of consumer needs, anticipating trends in global markets as well as a consistent focus on strategic brands 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 (IWSR market research institute). 

DACH: Double-digit growth of +12 %. In Germany, Henkell Freixenet recorded market share gains in sparkling wine and spirits and maintained its sparkling wine market leadership in Austria.

- Eastern Europe: Positive development in a challenging market environment with revenue up +8 %. Poland grew by +14 % and was able to extend its market leadership in the categories of sparkling wine and non-alcoholic thanks to Mionetto’s strong brand performance (+40 %). The Local Heroes (Bohemia, Hubert, and Törley) have developed steadily.

The Americas showed a decline in revenue, particularly due to destocking effects in North America. How are you addressing these challenges, and what steps are being taken to regain market share and drive growth in this region?

We have extremely strong brands and strong companies in the Americas so we expect to return to growth very soon.  

Sustainability is becoming increasingly important in the wine industry. How is Freixenet Copestick addressing sustainability within its operations and product offerings?

Sustainability is an important part of our day-to-day working approach.  We have overall global targets and UK targets to work towards in order to improve our position and impact.  On a local level at Bolney, we constantly look at how we can act and operate more sustainably – from planting, climate change awareness, utilization of AI to support vineyard management, and learning from the experience of other wine regions from our Henkell Freixenet group.

At all sites we offer electric vehicle charging and company schemes and several of our Jascots delivery vans are electric.

Image Source: Freixenet - Bolney Wine Estate

Looking ahead, what are your primary goals for Freixenet Copestick over the next five years, and how do you envision the company's role in shaping the future of the global wine and spirits market?

Our Category Visions is leading the way here and we believe we can deliver substantial growth within the UK and Ireland wine industry over the next 3-5 years. 

Vision: Making Time for Wine - Huge opportunity over the next 3-5 years

Making Wine Relevant – engaging and recruiting new audiences

Mindful Consumption – providing wine choices to resolve particular concerns (ethical / health)

Wine for All Occasions – driving wine consideration and purchase to new occasions

Exploration & Discovery – increasing wine repertoire through knowledge and experience

Wine Lovers Club – driving premiumisation with loyal wine drinkers.

We confidently expect our brands to gain market share. We will also add growth via our key supply partners and of course there are always plans for exciting NPD ideas to come to market. 

As the UK leader in Sparkling Wine and one of the top wine suppliers in the UK and Ireland, we have a key role to play in shaping and delivering this vision.

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Conclusion:

As consumer preferences continue to evolve, Freixenet Copestick remains committed to staying ahead of the curve by embracing sustainability, leveraging digital transformation, and maintaining a diverse and premium product portfolio. Their proactive approach to addressing market challenges and opportunities positions them well to continue shaping the future of the global wine and spirits market. With a clear vision and innovative strategies, Freixenet Copestick is poised for sustained growth and success in the years to come.

In conversation with Malvika Patel, Editor and VP, Beverage Trade Network