How 5th Largest Cava Producer Covides Restrategized their Japan Wine Market Entry With GourmetPro’s Expertise

Company size
501-1,000 employees
Cava wine
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Wine exporter COVIDES Viñedos - Bodegas knew how important it was to seek increased market share and expand in the Japanese market as the EU-Japan Economic Partnership Agreement, which improves business for companies with reduced tariffs on European exports into Japan, entered into force from February 2019.

Recognizing that the Japanese market has specific needs, Covides needed market expertise and distribution insights to adapt its offer. After approaching GourmetPro as a consulting partner, they got a fresh perspective of the market and re-strategize on a new plan to extend into the Japan wine market.

In 2008, Covides recognized the potential of Japan wine market

In 1963, Several Spanish grape farmers joined hands to form COVIDES Viñedos – Bodegas. These 600 farmers desired to become the number one wine cooperative in Catalonia. Mechanization offered to increase the quality and quantity of wine produced. Through their efforts, two wineries were built with modern facilities. Using technology did not stop the farmers from creating a wine with a unique form and taste. Covides is still focused on quality over volume. The expansion has increased production to 24,000,000 kg of premium grapes.  

From their headquarters in Catalonia, Covides wines and Cava has reached many parts of the world and 65% of this wine is exported to 50 other countries. The cooperative adopts a long term sales approach and is successful in securing places despite facing large competitors. With discipline, vision, and flexibility, Covides knows the key to successful market entry is to adapt its offer to foreign markets’ specific needs. The wines and cava are tailor-made for the consumers with the entry into each market.

In 2008, Covides recognized the discerning palate of the Japanese wine drinker and that they would fully appreciate the beauty of Cava. Early on, their research showed that the Japanese wine market has very specific needs that would need to be met.

Japan Wine Market Expansion Challenges

Covides needed a fresher perspective on the Japanese wine market under the light of the EU-Japan Economic Partnership Agreement

As one of the top five Cava producers, Covides knew the timing was right to seek increased market share and expand deeper into the Japanese market. But their sales team lacked the fresh insights needed to review their expansion strategy. Japan’s wine market is complex and a global understanding may not be enough to overcome the obstacles. They also needed to find the right partners, with whom they could develop a long-term good partnership.

Expertise-based solution

GourmetPro delivered the key insights Covides needed and effectively supported their project each step of the way.

GourmetPro experts provided a market snapshot, along with a diagnostic and strategic consultancy on expansion strategy. Their fact-based analysis demonstrated that the core category is fast-growing with a need for a new segment. This need would be covered by Covides portfolio. Assisting Covides further, GourmetPro built a compelling customer story supported by a 10-page presentation.

After organizing a prospecting market visit with the sales director, GourmetPro experts set-up and follow-up meetings with 3 major distributors. Covides strategized on a new plan to extend their market share, leveraging on the dynamic nature of the Japanese market, with the right contact.

Do you need valuable expertise on how to navigate Japan food and beverage market landscape? We can help your company.

GourmetPro helps companies like Covides every day to achieve successful market entries, by providing the much needed expertise required to confront and tackle market expansion challenges. We offer end-to-end customizable market-entry solutions in areas of; value chain assessment, competition analysis, conducting store checks, and carrying out negotiations supported by tailor-made sales presentations in Japanese.

We also assist F&B companies by identifying prospects and placing them in strategic positions through; recognizing potential areas, screening distributors, matching them with the appropriate businesses, setting up supply chains, and a lot more.

Is your company envisioning the prospect of Japan’s wine market? Let us assist you with market-entry.

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