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ZAMORA COMPANY ENDS A CHALLENGING 2020 WITH A €172.2 MILLION TURNOVER AND STEPS UP ITS EFFORTS IN INNOVATION
Zamora Company, the family business based in Cartagena and owner of brands such as Licor 43, Ramón Bilbao, Martin Miller´s Gin, Lolea and Mar de Frades, ended 2020 with a €172.2 million turnover, of which 55.8% comes from spirits.
The company produced an EBITDA of €27 million in 2020, which is 3.8% lower than in 2019. Although the group’s €172.2 million turnover meant a -17.2% drop compared to the previous year, it was still not as sharp as the rest of the sector in Spain, that is suffering one of its worst spells with an average drop of 30%.
“We have been able to curb the business loss to only -3.8% of the EBITDA, which clearly shows the success of our management. We have managed to achieve these savings by cutting down operating-related expenses and/or reducing structures,” said Emilio Restoy, General Manager of Zamora Company.
Our expansion in the international market, that already accounts for 47.5% of Zamora Company’s turnover, is clearly one of the major factors that has made the company stronger against the effects of the pandemic. Its presence in the food channel in strategic markets has driven the company’s flagship, Licor 43, to experience a rise in Off-trade sales of 21% in USA, 12% in Holland and 3% in Germany. In the UK, the company’s super premium gin, Martin Miller´s Gin, saw its sales grow by 19.4%, whereas in Germany we witnessed the sales of Ramón Bilbao soar a further 44% on this channel.
However, Zamora Company’s turnover was hit in markets where restaurants and bars have a greater relevance, such as Spain, where the closings and restrictions forced on these establishments between September and December entailed a 31% drop. Nevertheless, household demand has risen 11% and the online channel is 300% higher.
“The trend varies depending on the specific market. In Spain, the food channel has grown dramatically, but the recovery we began to observe during the first quarter of 2021 is still accompanied by bad news. It’s true that daytime restaurants and bars look as if they may rally in the medium term, but the nighttime bars and clubs continue to suffer greatly,” added Mr. Restoy.
Another determining factor for the company’s positive results is its focus on people. “When we were living through the worst spell in 2020, we strengthened our commitment to our human team, embracing remote work and guaranteeing 100% of their base salary. We have also contributed to support restaurant owners through our brands and helped people and groups who were badly hit by COVID-19 by donating €400,000,” explained Mr. Restoy.
COMMITMENT TO INNOVATION
Despite the pandemic , Zamora Company has continued to invest in innovation with a view to quickly addressing new and changing trends in consumption. The increase in household consumption has opened new paths and opportunities for the brands. “2020 marked the birth of Lalomba, Ramón Bilbao’s single-vineyard wine project, and we launched more than 8 new products globally. In fact, RTD Cocktail 43 Fresco was one of the 50 top new products according to Spirits Business in 2020, and our launch of RTD Carajillo 43 in Mexico has proved to be very popular, as well as our latest addition to the portfolio in other countries, our Villa Massa Amaretto, in 2021,” said Emilio Restoy. This year, the company will continue to innovate with as many as 7 new products. “We firmly believe that stepping up our investment in innovation will greatly help to build the brand and speed up the recovery in the next few months, as our trampoline for growth,” he added.
Adapting to the shifts in consumption habits by boosting innovation has been key to positioning Ramón Bilbao among the 50 most admired wine brands in the world and to make the Licor 43 RTD products the new product of the year in Holland.
THE FIRST RESULTS OF 2021
The 2% rise in sales in this first quarter (compared to a year ago without the COVID-19 effect) encourages a certain amount of optimism supported by the gradual improvement of the market and the opening of restaurants and bars in Spain and worldwide. “We estimate a double-digit growth for our main brands, Licor 43, Ramón Bilbao, Mar de Frades, Martin Miller’s Gin and Zoco,” explained Mr. Restoy. This optimistic outlook is greater in major international markets, such as USA, Holland, Germany, the UK and Australia, that reflect a gradual return to normalcy.
This 2021, Zamora Company will continue to work to consolidate its previously established strategic plan, adjusting it to the current scenario and aiming to return to pre-pandemic turnover figures. The company will continue to work on its digital transformation as one of the pillars of this plan, that involves an investment of about 3 million euros. It will also further its efforts for sustainability through its Conscious Company project. For the coming years, from 2021 to 2023, Zamora Company has estimated an investment of about €4 million in this area, which adds to the other €2 million invested this past year. Some of the goals is to source 90% of its power consumption from renewable energy by 2025 –already at 60%– and boost the use of sustainable wine-growing techniques. Zamora Company recently strengthened this commitment by joining the United Nations Global Compact.