Treasury Wine Estates (TWE) has this week announced the launch of a second wave of price marked packs (PMPs) ifollowing a successful trial of initial range launched last year. TWE’s research has shown the first phase of PMPs performed “exceptionally well” with figures highlighting an increased rate of sale over and above the standard packs. Feedback from wholesalers also highlighted that the PMPs were attracting new customers into the wine category and driving distribution of the range as a result.
Shaun Heyes, business sector controller – impulse, EMEA at Treasury Wine Estates, commented: “It’s fantastic to have received such great feedback on our PMPs from customers, especially given it’s the first time we’ve launched them on any of our wine brands. As well as delivering great value for shoppers through attractive price points, our aim was to increase profits and rate of sale for our customers. Figures on the rate of sale are extremely positive but we’re keen to ensure that we’re also offering strong profit margins for customers, which is why we’ve taken the decision to revise the pricing of the range.”
Available from mid-June, the new PMP range will include the same top-selling impulse SKUs within the £6-8 price bracket, but with some at a slightly higher price point. These include Wolf Blass Yellow Label Chardonnay and Cabernet Sauvignon priced at £7.99, as well as Lindeman’s Bin 65 Chardonnay and Bin 50 Shiraz which will now be available at a £6.99 price point. The price of Wolf Blass Red Label Chardonnay Semillion and Shiraz Cabernet PMPs will remain at £6.49.
“With the £6-8 segment now growing by 4.9% year on year and holding a 24.5% share of the total wine category [Nielsen Off Trade Scan Track Data from w/e 28.03.15], the new price point will allow customers to continue delivering visible value to shoppers, while enabling them to take home more profit and unlock their share of the £200m category opportunity we identified last year,” said Heyes.
Bottles from the new PMP range will highlight the prices on the bottle neck, providing stand out for the range on shelf while also encouraging shoppers to trade up to more premium wines within the growing £6-8 price bracket.