The king of Spanish sparkling wine Freixenet, Cava, wants to take advantage of the upturn in the market to make Henri Abele , its only champagne, a benchmark brand in gourmet restaurants and wine shops.

Freixenet is determined to give real notoriety to its unique brand of champagne, Henri Abele . The Spanish family group, best known for its Cava, a sparkling wine , wishes to impose its French brand as a benchmark in gastronomic catering , among wine merchants and abroad .

" We estimate that we have comfortable development margins in high -end Parisian restaurants, as well as for export " , says very confidently, Philippe Laqueche , general manager of Yvon Mau, the French subsidiary . The company has strengthened its sales teams and is working a lot on the quality of the wines by changing supplies, modifying blends and creating a new range offered to the consumer from 30 euros onwards. The prestigious vat ́ e , mille ́ sime ́ e , is sold for 130 euros a bottle.

Henri Abele now exports 40% of his 600,000 bottles to countries bordering France, but also to Japan, the United States and China. The house should soon be listed on a Chinese Internet sales site. The former Middle Kingdom is not a traditional market for champagne, but things have come to a standstill recently.

Freixenet also intends to rely on the distribution network of its French subsidiary , Yvon Mau, which specializes in the sale of grands crus, to promote its champagne. " It 's not so much a question of increasing volumes as of recreating the image , " comments the general manager.

From " cide " to bringing Henri Abele into the big leagues, Freixenet has engaged in " painful work " to create a new range and rebuild the brand since its takeover in 1985, notes Philippe Lacquer ̀ che . In previous years, Henri Abele had entered the distribution circuit, but had lost his notoriety and prices had collapsed . Freixenet took years to convince new winegrowers to deliver their grapes to him to improve the quality of champagne.

Freixenet invested 1.5 million euros in a new fermentation room in 2007, which facilitates upgrading . Henri Abele has gone through difficult years , especially during the crisis . In 2010, with a turnover of 5 million euros, the house returned to equilibrium .

 

The first Freixenet bar in the world opens its doors in China

The Spanish sparkling wine brand's Shanghai bar is small, but its ambitions are big: add chilled bubbles to Chinese glasses.

Shanghai adores nothing more than its ability to fit a new idea into any size nook. Located in the basement of a clothing store , the aptly named Alfie 's by KEE is a good example.

The latest is Bubbles Bar, which opened last fall in the third-floor attic of Spanish restaurant El Patio.

What 's interesting about the 15- square - meter watering hole is the drinks menu, which is uniquely dedicated to Cava, the Spanish equivalent of champagne.

Specifically , the bar serves a single brand of Cava, Freixenet , the wine known for its ad campaigns featuring Antonio Banderas, Sharon Stone, Kim Bassinger, Shakira and others .
 

The first Freixenet bar in the world

" This is the first Cava Freixenet bar in the world," says clare Gil Serra, 27, director in China for Freixenet.

The company had previously set up temporary drinks stands in Brazil and Croatia, but the Bubbles Bar is ́die 's first permanent establishment in Freixenet .

́ ea ̀ Barcelona based brand has been promoting Cava in China for over 20 years. However, according to Serra, the Chinese sparkling wine market is very young compared to its neighbor Japan, the country to which Freixenet exports more than five million bottles a year.

Serra notes that with the new bar in Shanghai , the company is " trying to understand [Chinese] drinking behaviors and taste profile . "

Chinese culture vs Cava culture

In addition to innovative cocktails and free tapas, Freixenet still has to go through some steps in order to pour more Cava into Chinese glasses.

" While in big cities, more and more middle-class Chinese are tasting real French champagne , most people still do not understand the difference between champagne and

sparkling wine , " notes Lawrence Lo (卢 浩 研), 39, from Shanghai, founder of LHY Etiquette Consultancy.

" Me ̂ me opening a bottle of sparkling wine can be a challenge for many Chinese consumers " , de ́ clare Lo.

One of Lo 's activities , born in Hong Kong, is to introduce the culture and etiquette of Western consumption to the Chinese. According to Lo, the Chinese market has yet to fully appreciate the culture of sparkling wine.

" Cava should be drunk cold, but many Chinese consumers follow traditional Chinese medicine, believing that drinking cold drinks is not good for the body " , de clare Lo.

Although China is now the world's seventh largest wine market, Lo is realistic about the future of sparkling wine in the country.

" While the sparkling wine market will grow , it will never be part of the culinary culture [like in Europe]. In China, it will most likely be a lifestyle. »
 

Sparkling wine: new in the running for Chinese consumers

Wine has been very successful in China for several years now . However, while red wine has always dominated sales , the wine market in China is changing. The purchasing power of the Chinese has greatly increased over the last few years , which has therefore changed their way of consuming . They covered themselves with new needs and new desires. They have become more curious about foreign products , especially gourmet products like wine. Wine consumption has therefore risen at the same time as their purchasing power. Which represents a big market in China.
 

China: the world's largest wine importer

China is today the fourth largest market in the world for wine . But this market continues to progress. Sales have increased on average by more than 30% over the last five years . Which is therefore very promising for the future of the sector! Pre -market experts even say that China is on course to become the world's largest importer of wine.

Moreover, more and more Chinese are joining the middle class every year. Foreign wines therefore still represent a promising market in China. Because more and more of them can afford to buy this type of product. However, while traditionally red wine was more successful there . New flavors have been introduced in China and consumers are raving about them. Trends are changing and white and sparkling wine are gaining more and more momentum on the market . This market , moreover , brought in $ 75 million last year .

This is partly explained by the evolution of consumers . Indeed, in China, the inhabitants are getting richer and richer, but also younger and younger. Wine consumers are no longer the same as before ! Who says new profiles, says new tastes. While older consumers tend to prefer red wine . Wine consumers are younger today and there are also more women. These two factors influence their tastes and red wine is less and less popular. It is white wines and sparkling wines that are more and more popular with Chinese consumers. They are also gaining more and more market share against red wine.

Most of these wines come from France, Australia and Chile. Italy and Spain are also major importers of sparkling wines . French wines are very appreciated because they are famous and the image of France gives a luxurious aspect to the drink. Moreover, the Chinese love France. However, most of these wines remain out of reach for most consumers. Although they are between the middle class , they are still not all able to put so much money in a bottle of wine. They will therefore mostly be looking for products of similar quality, but for a lower cost . Wines of Argentinian , Spanish and Portuguese origin are therefore stealing the limelight from the others. They are more in line with the expectations of Chinese consumers.
 

How to conquer the new wine market in China? Adapt to Chinese tastes

Before launching new products that the Chinese don't even know exist , you have to know their tastes . In Asia and in the West the flavors are very different and we don't necessarily have the same tastes . The Chinese will prefer fruity and sugary wines , low in alcohol .

Some brands have created drinks specifically for the Chinese market. This is notably the case of Mo ̈ and & Chandon which released two wines (a white and a pink ́ ) called ́ " Chandon Me " only for Chinese consumers. They are considered sweet with floral aromas , hints of fruit, and a smell of honey. It was a great success for the brand . It is therefore necessary to know how to adapt to the Chinese to conquer them . In addition, they still have a whole variety of products to cover : the diversity of champagnes, cremants , prosecco, etc.
 

Freixenet turns to Brazil , Russia, India and China

Grupo Freixenet seeks to expand its presence and establish itself in Brazil , Russia, India and China to take advantage of the business opportunities that arise in these emerging countries . , explained to the CEO of Freixenet, Pedro Ferrer, as part of the celebration of the 25 anniversary of the Gloria Ferrer winery in Sonoma (California).

"In the Far East , they are waiting for us with open arms ," said honorary president of Freixenet , Jose ́ Ferrer , who assured that Japan was a big market . and that the group would take advantage of opportunities in China .

 

QUESTIONS

1. Based on the intercultural model (of Mooij , 2011), build a strategy for adapting the Cava de Freixenet product to the Chinese market. 

2. Based on the intercultural model (of Mooij , 2011), build a strategy for adapting the communication of Cava de Freixenet for the Brazilian market . 

3. What pricing strategy do you recommend for Cava in order to access the Russian market? Justify your answer based on product aspects. 

4. In cultural terms, to which market will it be easiest to internationalize Cava ? : Brazil, Russia, India or China? Base your explanations on the social process of the intercultural model of Mooij (2011) .