Ready to exploit the trend for trading up

The off trade wine category has continued to see some good growth this year with value growing ahead of volume signifying the trade up trend in the market. The Australian category still retains a premium over all other countries of origin (with the exception of New Zealand) which represents a great margin opportunity for the retailer. Naturally Foster’s EMEA is pleased with this trend given its products all sit above the market average in terms of price.

Penfolds senior brand manager Rachel O’Shea says: “The convenience sector remains very important to us and reflecting this we continue to expand our dedicated sales and marketing team in this channel to bring our customers sector specific sales solutions.” She says the Christmas period is a tremendously important time for Penfolds and its retailers as this is the time of year when there is an increase in some of its more premium lines, matching the consumer trend to ‘trade up’ at Christmas time.

She says: “With a recently launched global advertising campaign on Penfolds, there has never been a better time to buy into the brand. Penfolds is a brand with real heritage, having a history of 160 years of wine making. There is some great depth within the portfolio of products starting from Rawson’s Retreat, which represents great value for money at pound;5.99 right through to the iconic Grange pound;150.”

Penfolds has recently launched its first global advertising campaign in six years, focusing predominantly in printed media globally. The creative above the line strategy features some of the Penfolds team who do things “for love not money”.

The campaign introduces some of the characters at Penfolds, from chief winemaker and creator of Grange, Max Schubert, current chief winemaker Peter Gago, to those who care for the vineyards.

O’Shea says: “This campaign is a significant investment that will build our position as one of the world’s most coveted wine brands. Penfolds represents timeless excellence and a journey of discovery, learning and reward. Our ambition was to capture passion and pride within the Penfolds family and share it with our consumers all over the world.”

In the UK, Penfolds new advertising campaign will be seen in a collection of magazine titles including The Week, Spectator, New Scientist, The Features > Business, FT Magazine, Economist, Private Eye, and National Geographic.

O’Shea adds: “Readers of these titles are the ideal Penfolds target consumers. They are busy people and therefore more likely to be reliant on their nearby convenience outlet due to being time poor. It makes sense to stock up with Penfolds now to ensure you can capitalise on the increased sales opportunity this Christmas.”

Rawson’s Retreat, the entry level tier into the Penfolds range, present classic single varietal and varietal blends in an approachable, fresh-flavoured style. The range has a recommended retail price of pound;5.99 and includes shiraz cabernet, cabernet sauvignon, semillon chardonnay, chardonnay and Riesling.

Koonunga Hill is aimed at the more discerning customer. Like Rawson’s Retreat the range is made up of blends and single varietals, and it has a suggested retail price of pound;7.49.

The advertising push on Penfolds will continue into 2008 with a concentrated focus period around March/April/May.

In addition to its dedicated sales team for the convenience sector, Foster’s EMEA has been working closely with the wholesale sector to increase sales. This has included trialling a new fixture at Parfetts’ depot in Stockport designed to showcase the products and educate retailers about the wine category. In addition, Foster’s EMEA has worked closely with the FWD’s MSYS campaign. It has a member of its team on the PR Action Group which runs the campaign, and was actively involved in National Independents’ Week.

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