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SPAIN: Estrella to expand in wine and water

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Spanish brewer Estrella Galicia is to invest €30m between 2006-08 to grow its domestic wine and water businesses, a company spokeswoman confirmed to just-drinks.

As part of the two-year strategy, Estrella will expand its Cabreiroá, Manzanova and Adantis mineral water, cider and wine brands respectively. It will also grow its main brewing business by launching new products under its Estrella Galicia trademark, the spokeswoman noted. Estrella also recently launched new Tequila brand Quenzal and is reportedly interested in tapping the juice market.

Estrella's beer franchise accounts for 85% of the group's revenues, while its other beverage businesses make up the rest. Since 2000, the company has invested €85m, with €65m going to its brewing franchise.

Estrella sells its beer and water labels in the international markets, mostly in Andorra and Mexico. However, the company intends to focus on consolidating these businesses before embarking on further international expansion, the spokeswoman noted.


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