MILAN, Aug 29 (Class Editori) — “Although we often focus on China, when it comes to actual sales, neighboring countries have more promising turnovers,” Alessandro Mutinelli, President and CEO of Italian Wine Brands (IWB), Italy’s top non-cooperative wine Group, said. In 2022, the company sold 180 million bottles, resulting in 430.3 million euros in sales, a 5.2% increase from 2021. However, the EBITDA decreased by 11% to 37.2 million euros. The net income for the period was 14.2 million euros, a 21.8% drop from the previous year.
“The decrease in profit margins was a result of insufficient materials, particularly glass. Although we had the materials in-house, we were unable to bottle or ship due to the double impact of the glass and supply chain issues, impacting our financial accounts,” Mutinelli continued. As a result, IWB is prioritizing expansion in the APAC region, which encompasses Asian-Pacific countries, in order to sustain growth.
“We have key accounts in Vietnam and South Korea,” Mutinelli explained. “We are currently in the process of finalizing an agreement to establish a permanent organization in China, where we plan to open our own office in Shanghai by the end of the year. Our goal is to replicate the 12% market share we have in Switzerland throughout all of our markets,” the Manager added.
An extra boost could come from online sales. “It is a channel where we will keep investing, because it also provides us with trends and immediate answers about which direction the consumer is taking. Currently, we do not handle online sales directly in China, although we have our own customers who do that. We handle online sales directly where logistics are manageable, such as in Europe. Managing logistics from Italy to China would be unfeasible,” he explained.
Boosting the online channels may be the next focus for the Shanghai office. “The office will primarily cater to business customers who purchase in bulk and resell. There will be personnel responsible for managing online sales. Our customers in China are mainly distributors selling to large restaurants and hotel chains. In China, wine is frequently given as a gift, particularly in corporate contexts. However, consumption remains low, with less than one liter per capita, due to wine’s association with Western culture,” the Manager explained.
(Source:Class Editori)
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.
A single purchase
