Sparkling wine producer Rotkäppchen-Mumm expects a difficult year

FREYBURG / UNSTRUT (dpa-AFX) – No exuberant jubilation at the sparkling wine manufacturer Rotkäppchen-Mumm: The company expects 2023 to be a challenging year. “The times are not easy for any of us at the moment, not for the consumers and not for us,” said Christof Queisser, CEO, on Tuesday. He pointed to high energy and raw material costs, inflation, supply chain problems and the effects of the Ukraine war. “We will all have to adjust to a new, sustainably higher price level,” he said. Sparkling wine is expected to be between 50 cents and 1 euro more expensive per bottle.

“In 2022 we were confronted with unprecedented cost increases in all areas of the company,” said Queisser when presenting the balance sheet. This is very mixed. The sales level of the previous year 2021 was maintained, but under very challenging and volatile conditions, said Queisser.

“The massive increase in costs hit us quickly and severely, especially due to the use of energy-intensive glass. As a result, we also had to adjust our sales prices last year, but were only able to absorb part of the cost increases,” said Frank Albers, Managing Director for Finance , IT and staff. Packaging such as cardboard boxes and pallets for storing goods have also become more expensive.

Queisser rated it positively that after two years of restrictions caused by the corona pandemic in 2022, consumers visited restaurants more often, celebrated and went on vacation. As a result, more was consumed outside the home again. The company expects that in 2023, despite or perhaps because of the mood of the crisis, people will not want to do without pleasure, “little breaks”, according to Queisser.

According to the information, the total turnover of Rotkummel-Mumm in 2022 was around 1.2 billion euros, as in 2021 (2019: 1.1 billion euros). Of this, 582 million euros was for sparkling wine, 397 million euros for spirits and 260 million euros for wine. The range also includes Prosecco and non-alcoholic sparkling wine and wine variants.

In terms of the industry, the sparkling wine market in Germany increased sales by 1.6 percent in 2022 compared to 2021, with Little Red Riding Hood increasing by 3.3 percent, said Queisser. The family business generally does not provide information on profits. Rotkummel-Mumm Sektkellereien GmbH, based in Freyburg (Unstrut), is Germany’s market leader for sparkling wine. The company employs a total of around 1,000 people at nine locations.

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