Varma signs an exclusive distribution agreement in Portugal

 

The leading Spanish company in the distribution of spirits, wines and liquors, Varma, has signed an exclusive distribution agreement in Portugal, by which it expands the export capacity in its beverage portfolio, led by its business unit Varma Imports and Exports. In line with the company's strategic plan, which has among its main objectives the internationalization of its own brands, the agreement signed with the Portuguese company Garcias Wine & Spirits, will allow the brands owned by Varma - Ron Barceló, Vermouth Yzaguirre, Master's, Malavita and the wines of Bodegas y Viñedos del Marqués de Vargas - to progressively be available in Portugal and its islands.

 

Two family businesses guided by the same values

 

Founded in 1981, Garcias Wine & Spirits is a family company with a solid reputation in the industry thanks to values ​​such as a culture of effort, entrepreneurial spirit and great capacity for innovation. Like Varma, the current presidency falls to the third generation of the family in a business entirely run and controlled by Filipa Garcias, CEO of Garcias Wine & Spirits. Their route-to-market model allows them absolute access to the different distribution channels (hospitality, food and online business), and they have their own facilities covering the entire national territory in continental Portugal and the Islands, which allows them to reach to more than 14.000 clients directly.

 

To Carlos Peralta, General Director of Imports and Exports of Grupo Varma, “this distribution agreement with the neighboring country and, through a leading distribution company such as Garcias, highlights our development strategy in a market that has many possibilities of growth and synergies. “We are sure that Ron Barceló, the leading brand in our country, will expand its market share in a very positive way in the Portuguese market, obtaining very beneficial results for both companies.”

 

The spirits segment in the Portuguese market foresees that the income of this sector in the neighboring country will amount to around 6.000 million euros by the end of 2022

 

Varma Group and Portugal, a commercial relationship that began in 2020

 

This new agreement consolidates the presence of Grupo Varma and its brands in Portugal. Specifically, in 2020 the Varma Food & Personal Care division established a distribution alliance with the company Unibrands, that
allowed the presence of its products in the neighboring country. This new contract with the Portuguese company Garcias means that Grupo Varma acquires a new dimension in terms of distribution throughout the entire
Iberian Peninsula.

 

Meanwhile Teresa Martin de la Mata, President of Grupo Varma, points out that “entering the Portuguese market with a company like Garcias makes us feel very satisfied. Both companies are companies created by a family, and we share values ​​such as the culture of effort, the entrepreneurial spirit and the great capacity for innovation, and the same vision of the sector with the hospitality industry as a key channel for construction.
of brands. With this alliance we further reinforce the objective of internationalization of our own brands, such as Rum Barcelo, fulfilling one of the key objectives of our strategic plan.”

 

Filipa Garcia, CEO of Garcias Wine & Spirits, indicates that “having brands in Portugal with such strength as Ron Barceló or Vermouth Yzaguirre that come from the hand of a family business like Grupo Varma, is undoubtedly the beginning of a prosperous relationship. In 2021, Grupo Varma managed to position Ron Barceló as the absolute market leader with 1 million cases distributed and we hope that the Portuguese market responds with the same strength to such a consolidated brand.”

 

The spirits sector in Portugal, a market with growth prospects

 

The spirits segment in the Portuguese market expects that the income of this sector in the neighboring country will amount to around 6.000 million euros by the end of 2022. Looking ahead to the coming years, growth forecasts continue to be on the rise, since between 2022 and 2025, the market is expected to grow annually by 12,70% in sales value. In terms of volume, this sector is expected to show a growth of 15,3% in 2023 and will rise to 1.222,3 million liters by 2025.