More than 74 million euros distributed to grower-members
Soave. The 2018-19 financial report won unanimous approval during the course of Cantina di Soave’s general membership meeting, held at Rocca Sveva on Friday, 8 November. Echoing that satisfaction were Roberto Soriolo and Bruno Trentini, respectively Chairman and General Manager of Cantina di Soave, as well as the entire Cantina di Soave Board of Directors. The final results were particularly positive for the 2.300 member-growers, who saw their remuneration payouts for grapes delivered rise to over 74 million euros and their average income per hectare almost reach 13.500 euros, two truly record amounts.
- Cantina di Soave closed out its 2018-2019 financial report with a consolidated turnover of 136 million euros, in spite of generally lower prices in the markets
o In terms of value, sales performance in the year ending in June 2019 was represented 65% by domestic sales and 35% by international. Good performances in Germany, Switzerland and Austria led to a slight increase (+6%) in european sales, which compensated for declines in the UK and Denmark. The most satisfactory results, however, came from across the ocean, in particular from Canada (+71%), which prizes our prestigious and multi-medalled Ripasso and Amarone, and from Japan (+154%), which shows a predilection for our Soave. In a year characterised by significant volumes of wine on offer and by falling prices, it is worth note that the average price per litre of branded wine rose +9% for Rocca Sveva and +15% for Cadis.
o The relationship between bottled and bulk wine sales, 42% and 58% respectively, is once again reassuringly positive. The latter grew by +9% in volume and dropped by -6% in value, because of the generous 2018 harvest. Bottled wine, on the other hand, advanced 13% in volume and 11% in value, an impressive figure, given currently complicated conditions in the market and the technical challenges involved in switching over, in mid-processing, to the new bottling lines in the main production facility in Viale della Vittoria, in Soave. The bottled wines assume a position of great importance, since this is the wine category that protects average prices from being unduly affected by market fluctuations.
o The bottled-wine category exhibits a healthy division between brand and private label wines, 46% and 54% respectively, which is an important indicator of the winery’s success in keeping each sector strong. The branded wines bring in higher revenue, thanks to their overall higher retail prices, but the private-label wines are excellent performers, which ensures them a strong market share.
- In terms of capitalisation, winery assets exceeded 65 million euros, with an operating cash flow of 9.5 million euros and profit for the year of 1.9 million euros. Liquidity was likewise positive, at 25.4 million euros, even taking into account investments of 18 million euros over the course of the fiscal year.
- Grape deliveries totalled 91 million euros, and remuneration payouts to member-growers set a record: over 74 million euros.
«Over recent years, Cantina di Soave has undergone a profound transformation – stated General Manager Bruno Trentini – we developed an overall strategy focused on heightening awareness and value of our denominations and on a vigorous commercial policy for our own brands. Pursuing this strategy has entailed, over the years, the integration of the Cantina di Cazzano, Cantina di Illasi, and Cantina di Montecchia, which in turn allowed us to expand our growing area and broaden our wine portfolio. That growth made it possible above all to strengthen our identity as a vertically-integrated operation, from grape to bottle, using our own grapes. That factor constitutes our quality main guarantee to the consumer and is at the same time a security for our member-growers, who can rely on having a reliable establishment in which they can have confidence. Our growth has been managed in such a way that we can guarantee a remuneration for our grapes considerably above the going market rate and that of our competitors. In addition, the winery has succeeded in modernising its grape reception centres and production facilities; in acquiring new facilities; and, most recently, in enlarging our headquarters in Viale della Vittoria. That project now gives Cantina di Soave an ultra-efficient, modern complex that provides us with a forward-looking future. Managing the construction work was challenging this year, too, as was the economic side: 18 million euros in the fiscal year just concluded. Overall, the three years of construction required an investment of around 90 million euros, one of the most significant in the Italian wine sector in the last ten years.
Thanks to all these factors, the prestige and reputation of Cantina di Soave have grown enormously over the years, so much so that it has become a true benchmark in the wine scene in Italy and internationally. The title of “Italian Wine Producer of the Year,” awarded us in November 2018 by the prestigious IWSC competition is a much-appreciated confirmation of that status».