THE MATARROMERA GROUP WILL TRIPLE ITS SALES IN 2015

It will base its expansion on conventional wines, alcohol-free wines, grape-extract cosmetics, olive oil, distilled spirits and wine tourism.

The Matarromera Group will triple its sales in 2015 thanks to the weight of its foreign trade and its diversification

In 2010 the group’s sales amounted to 13.8 million euros, 27.4% more than the previous year.

• ·The Strategic Impulse Plan 2011-2015 will give the company a turnover of 47.8 million euros at the end of the period, three times more than at present.
• ·The Matarromera Group is present today in 50 countries, and with the application of the Plan it will expand its presence to 80 countries, with its own structural implantation in large markets.
• ·The company has constituted its first two international subsidiaries, Matarromera China Ltd. (Shanghai) and Matarromera USA Inc. (New York), to attend to the good growth expectations in both markets.
• ·In 2010, international sales signified 30% of the total. In 2015 they will represent 45%, with China and the USA accounting for 28% of the group’s total sales.
• ·In 2010, sales from winemaking represented 94% of turnover. In 2015 it is expected that alcohol-free wine will signify 40% of turnover.

The Matarromera Group has designed its medium-term future and expects in the coming years to carry out a significant expansion of its corporate dimensions. If today it is among the leading winemaking groups in Spain and on the international stage, on completion of the 2011-2015 expansion plan drawn up by the senior management, the goal is to become one of the country’s top agrofoodstuffs firms, based on a policy of product diversification, internationalisation in new markets and capture of new consumers.

“In the last few years we have constructed our bases of competitiveness, resting on a commitment to innovation and product diversification, and now we are in a position to harvest the fruits. To put it another way: we have created the highways and now we are going to speed along them,” says Carlos Moro, the Chairman of the Matarromera Group, which in 2010 recorded sales of 13.8 million euros, 27.4% up on the previous year.

“The assets we have endowed ourselves with mark out our strategy for the coming years: foreign growth, based on the quality of our wines and the strong demand for alcohol-free wine that we have found in large markets like China and the USA,” Moro says.

The great leap forward in turnover in the period 2010-2015 will come in 2011, rising to 24 million euros (76.8% growth), driven by the group’s capacity to publicise wine brands that have had a ‘soft landing’ in the market, like Cyan, Valdelosfrailes and Rento, the increased capacity to export alcohol-free wine thanks to the new molecular deconstruction plant now being built in Valbuena de Duero (Valladolid), the largest in the world, which in 2011 will enable its production of this product to be multiplied by ten, and finally, the commercialisation of other products like extra virgin olive oil (Emina Picual and Emina Arbequina), fortified or liqueur wines (Emina Oxto) and high-range cosmetics (Esdor Cosméticos).

The weight in the 2010 sales was distributed as follows: the various wine brands (Matarromera, Emina, Renacimiento, Valdelosfrailes and Cyan) represented 94% of total sales, 4% was alcohol-free wine (EminaSin and EminaZero) and 2% was shared between eaux-de-vie, olive oils, cosmetics (marketed from the second half of the year) and tourism, with 14,000 annual visitors to the various wineries.

The business diversification chart will be different in 2015. The scenario foreseen by the company is an increased participation of alcohol-free wines in the total sales (close to 40%), although the wines from the company’s seven wineries will continue to generate the largest part of the turnover (50%), and 10% will be distributed between the other product lines mentioned above.

From 2012 onwards, the growth plan will maintain a strong pace of growth, although rather less than in 2011, with annual increases in the two-digit range.

MATARROMERA GROUP. Forecast turnover (in thousands of €):

China and the USA: priority targets for consolidation

The Matarromera Group takes a giant qualitative and strategic leap in its structure with the creation of its first two foreign subsidiaries. The company has recently set up a stable commercial and corporate structure in both China and the USA, with the aim of increasing its presence in both countries. The plan is to open up in new countries in the coming years.

Matarromera has established these foreign branches with its own staff, who will be complemented with the hiring of local personnel, which will enable this ambitious project of international expansion in both countries to be undertaken with ample guarantees.

In the case of Matarromera China, the recently inaugurated branch in Shanghai will have the primary objective of channelling the sale, marketing and distribution of all the references of the Matarromera Group, with special emphasis on the largest cities, and with the aim of becoming the Spanish winemaking group with the greatest implantation in China in the next five years. The complexity and size of the Chinese market have been decisive factors in making the major decision to create this subsidiary.

The strategic plan in this gigantic country is to meet a very demanding turnover schedule in the next five years, almost multiplying sales fourfold within the period. In fact, the company expects to invoice €1.7M next year and €6.1M in 2015, with constant double-digit increases. The planned investment in China is €700,000, and the return will be close to 10%.

Matarromera USA, for its part, begins its activities with offices located in New York, with the goal of expanding from there throughout the United States. With regard to turnover in the USA, the figures are slightly larger than those for China, with an investment of €1.2M and forecast turnover of €2.5M in 2011 and €7.3M at the end of the period in 2015. The expected return on investment will be similar to that of China, around 10%.

These two actions signify a landmark in the history of the Matarromera Group, since they represent a strengthening and reorganisation of the company that are indispensable for it to face the future.