Daily Newsletter

17 July 2024

Daily Newsletter

17 July 2024

Familia Martínez Zabala invests in white, rosé wine as global consumption slows

Director general Francisco Honrubia said the group's whites and rosés could form 30% of its portfolio in ten years, up from 15% today.

Jessica Broadbent

Family-owned Spanish wine group Familia Martínez Zabala is investing in white and rosé wine production as it tries to adapt to changing consumption trends.

The group produces around 25 million litres of wine a year – almost half of which is used for its flagship brand: Bodegas Faustino.

Of that, around 15-17% is used for white and rosé production – up from less than 5% ten years ago.

Speaking to Just Drinks yesterday (19 July) director general Francisco Honrubia said: “It wouldn't surprise me if we reach 30% in ten years.”

The group has been investing in increasing the volume and quality of its white and rosé portfolio as well as production capacity, particularly in Rioja, Honrubia said.

Rather than buying more land, he said: “Our strategy is to set up long-term contracts with cooperatives and with external producers.”

With wine consumption declining globally, Honrubia said shifting its focus towards white and rosé is part of the group’s strategy to reach new consumers.

“The percentage of white wine that we are selling worldwide is increasing a lot. We understand with climate change, with the new consumers getting into the market, whites and rosés are going to be categories that continue growing,” he said.

Familia Martínez Zabala is also looking into developing low-and-no-alcohol wine and has recently “refreshed” the Faustino brand, reducing the abv of several SKUs.

In terms of varieties, Honrubia said: “In Spain, we have we have two visions. From one side, we are really commercialising local varieties like Viura (Macabeo), Verdejo, Albariño and so on.

“In Castilla La Mancha we have the facility to produce international varieties like Sauvignon Blanc, which are in quite high demand from some of our markets and suppliers.

“We are really focusing first on local varieties but every international variety that is showing a good adaptation to our land is also being taken into account.

“We are focusing on many different things in order to have a broader portfolio.”

The group has six brands, each with its own winery, across Rioja, Ribera Del Duero, Navarra and La Mancha.

Of its 2,200 hectares of vines, 650 are in Rioja – the home of Faustino, Bodegas Campillo and Marques de Vitoria – and it works with growers covering an additional 650 hectares in the DO.

Its domestic market forms around 40% of group sales – though Faustino is more export-focused, with 75% of sales driven by export.

In volume terms, Bodegas Leganza is Familia Martínez Zabala's second-largest brand. In value terms, Bodegas Portia and Bodegas Campillo follow Faustino.

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