Sergio Fuster (Codorníu): “The ‘Spain brand’ has enormous potential. We are a bit myopic”

Sergio Fuster (Gandia, 1974), industrial engineer and marketing expert, has just completed one year in the Raventós Codorníu group as CEO. It arrives at the cradle of cava, Sant Sadurní d’Anoia, with an ambitious growth plan: doubling the current turnover (about 180 million euros) of the former company controlled by the Raventós family and returning to profits after a period of ‘ Red numbers’. For that, he was signed by the Carlyle investment fund (now owner of 68% of the company). He went to look for him in Chicago.

The Valencian executive directs the well-known empire founded in 1551 in which 18 generations of the aforementioned Catalan family have participated. He runs 15 wineries and 3,000 hectares of vineyards. Before that, he worked at Kellogg’s Company, Procter & Gamble, United Biscuits and Danone, among other multinationals. In addition to his experience in Spain and nearly a decade in the US, Fuster has led businesses in Mexico, the UK and Switzerland. His passion for computers and video games led him to study Telecommunications at the Polytechnic University of Valencia. There he found his first job (technical director of the first building of the Ciutat de les Arts i les Ciències).

After 20 years ‘expatriate’, traveling the world and with American nationality in his pocket, he returns happy and convinced that “like in Spain you don’t live anywhere”. Quail renews its image on a global level at the gates of 2022, the year in which it will celebrate in style the 150th anniversary of the first cava, created in its winery in 1872 by Josep Raventós.

The supply crisis is beginning to subside, although the omicrom virus is now appearing. Do you see other obstacles to the recovery of the economy?

Good times and recovery are ahead. The key is to know the magnitude of this process, which depends on the sources and agencies that are consulted. I am optimistic. Spain is one of the economies that has suffered the most and will also be one of the ones that will rebound the best. Since June of last year, the cava sector has already grown at a double-digit rate. That trend can be maintained.

So, will Spain and other countries toast with more cava this coming Christmas?

Yes. As I am not a scientist, I cannot comment on the evolution of the virus. I read the news with concern but not with panic. We have a lot to learn about this variant. We will see.

The ERTE in the wineries, are they already history?

In ours, at the moment, we do not have planned any movement on the horizon in that sense. We employ about 600 workers in all wineries in Spain, the United States (California) and Argentina (Mendoza).

Germany’s Henkell has taken control of Freixenet and the American group Carlyle, from Codorníu. What is the future of family-owned businesses?

It is very difficult to generalize about the succession of a family business. I come to a gem that has been relatively calm, or asleep; where there has been a change of shareholding that the family itself sought to promote the company. The change in shareholders and strategic partner is positive because it allows society to regain its growth path. The various branches of the Raventós family sit on the board of directors.

In large family businesses there is much talk now about Marta Ortega, the daughter of the owner of the Inditex empire, who will take over the group in 2022. How do you see it?

The outgoing president (Pablo Isla) has done an extraordinary job and has projected the company around the world. The replacement in the remote is one option among many possible. It is a different case from Cordorníu because the ownership of the company has not changed at Inditex.

Once the ‘battles’ of the Raventós saga have been settled, what are the group’s objectives now?

We have two fundamentals. The first is that of internationalization. When we started on this ‘business adventure’ 70% of our sales were in Spain. Now we are 60% in the domestic market and 40% abroad. The long-term objective, between five and ten years, is that 80% of our turnover comes from abroad without losing sales in Spain. We are present in 200 countries. The United States, the United Kingdom, Japan, China and Belgium are the main markets. And the second axis is to bet on the ‘premium’.

We have cavas in the medium and medium-high ranges that have nothing to envy to those of other nationalities and many times the prices do not reflect what they could reflect. There are plans to integrate more businesses into the group either through winery purchases, inside and outside of Spain, to complement our offer. We are at the beginning of Carlyle’s investment journey in Codorníu.

What future do organic wines have?

In the five hundred year history of the company we have always been distinguished by quality. And that must be maintained. We are the group with the most vineyards in Europe with 3,000 of our own hectares. Codorníu is committed to completing the process from the vineyard to the bottle. We have also opted for organic wine. In fact, we have 35% of the organic cava in the world. Agricultural businesses are complicated. It is difficult to value crops. And with ecological practices we are returning value to the land.

Fires, frosts, droughts & mldr; Climate change. There are many dangers to long-term wine production, right?

Wine production will have to adapt to climate change because each year the vintages are harvested earlier. You have to take into account the effect of more heat in production and know how it is mitigated. For example, planting higher and with tools that help cover the vineyards in sunny hours. Solar panels, in addition to producing electricity, can help to cast shade. There will be an adaptation that will force the wine sector to innovate and adapt.

How do you see the ‘Spain’ brand?

Spain is fashionable in the world. Olive oil or cava have a long history. The quality-price ratio that we have in Spanish products is competitive in the world. However, from the point of view of commercialization and marketing no, we have always done a competitive job with respect to other cultures such as French or Italian. Sometimes we become a bit myopic because the potential of the ‘Spain’ brand is enormous.

Has cava consumption peaked in Spain?

The ‘horeca’ channel and large distribution share our sales equally. White label we do not do in Spain but we do in other parts of the world. We do not renounce those standards in Spain. As a business person I do not give up anything if it has a strategic value. The distribution chains are my partners and they ask for private labels.

The current ‘target’ for cava consumption is between the ages of 35 and over. The new generations, will they drink cava?

Yes. The first thing to do is speak the language of the younger generations. That is why we evolve our communication plans, advertising or programs with the youngest ‘target’. The message works with suitable visual communication codes. Our marketing will continue to show this. It is a product that everyone likes.

Should the planting rights of new cava vineyards be restricted in the territories authorized by the Ministry: Catalonia, Valencia, Extremadura and Aragon?

The union of the regulatory council of the DO Cava makes the force. In order to guarantee the value strategy, it is necessary to control the quantities and qualities that are produced. As a business concept that makes sense.

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Will Codorníu go public?

There is no concrete plan. The options are far away because Carlyle’s journey is only at the beginning. Although in the end all options are open.