German sparkling-wine group Schloss Wachenheim is doubling production capacity for its non-alcoholic sparkling wine to meet growing demand for alcohol alternatives, it said.
Speaking to Just Drinks at the London Wine Fair last week (20 May 2024) Dan Harwood, UK and Ireland sales manager, said it has purchased a second dealcoholisation machine.
The new machine, which produces non-alcoholic wine through vacuum distillation, is expected to be up and running by July.
Harwood said: “We see the market growing, in fact, that’s why we are putting up another dealcoholisation machine right now. So we are doubling capacity.”
The company has capacity to produce 40,000 litres of non-alcoholic wine a day, which will be doubled with the move.
“It opens up more markets for our products as well,” Harwood said.
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By GlobalDataCurrent export markets have capacity to absorp the increase in production, but the company is looking to expand into new geographical locations and new customers in existing markets, Harwood said.
“What we see in the UK, is that consumers start to drink more and more alcohol-free or dealcoholised, and they want more choices. They don’t want to go to a shelf and be offered one option, it’s a white, red or rose,” he said.
“We want to give consumers a choice to have different varieties like Sauvignon Blanc, Chardonnay, Merlot or Cabernet Sauvignon.
“And the same principle with quality. You can have our everyday range, Signature, or you can spend a bit more if you are having a party or if you want something with food, go for Selection. We also have mulled (wine) for Christmas time.”
Schloss Wachenheim has subsidiaries in Eastern Europe, France, the UK and owns wineries and retail chains in its domestic market. In February, it bought online wine retailer Geile Weine.
It produces sparkling wine and RTDs, both in dealcoholised and regular versions with different brands.
Eisberg the brand started to produce non-alcoholic wine in the 80’s and the German company has acquired the business in 2001. Eisberg, available only in the UK. Eisberg’s “premium line”, Selection, retails for £8 ($10.17) a bottle, while its “everyday line”, Signature, has an RRP of £3.75 – £4 ($4.77- $5.09) in the UK.
Sparkling wine now forms around on third of the company’s production, alcohol-free another third and the rest is formed by RTDs and other drinks.
The business’s main markets are Germany and the UK, but it exports in more than 80 countries including the US, Canada and Australia.
The Trier, Germany-headquartered company sells approximately 250m bottles a year, and its annual revenue is approximately €450m a year. Most of this is made up of sales in Germany, and Eastern Europe is a “big part of it as well” said the commercial director. In the UK, the company sells approximately 2.2m bottles of drinks.
It sold approximately 234 million bottles in the 2022-23 financial year.
The company’s brands include wines Nymphenburg and Schwansee, alcohol-free wine Faber and Light Live, Feist, and its namesake brand Schloss Wachenheim.
