Brands yes but not so cheap?

Treasury Wine Estates launched a range of price-marked bottles for its top-selling wine brands in the £6-8 price bracket, Wolf Blass and Lindeman’s, last month. The firm says the new PMP range is one of the ways it is helping convenience retailers unlock what it argues is a £200m category opportunity that it identified earlier this year.

WINE shoppers are very different to those in other fast-moving consumer goods categories, according to wines giant Treasury Wine Estates.

Including a very wide variety of demographic groups, wine shoppers consider taste and quality of greater importance over and above price, said Shaun Heyes, head of customer marketing at TWE.
“Wine shoppers buy less frequently but spend more when they do and this behaviour presents convenience retailers with a great sales opportunity,” he said.
“Wine shoppers also spend more than double that the average convenience shopper spends, buying more items per visit and spending longer in store than the average shopper.
“By ensuring they have the right range on offer, Scottish retailers can attract these higher value shoppers into their stores and grow their sales as result,” he argued.

Treasury Wine Estates is introducing new branding for its Australian wine brand, Lindeman’s. The new look, above, will reach Europe in March 2015.

With a total market of £1.1bn at present, the wine category presents a great sales opportunity for convenience and independent retailers, the firm suggests.
It says that as consumer interest in wine continues to grow, so does the repertoire of wines that wine fans buy. But, TWE argues, Scottish retailers tend to stock entry-level wines to deliver value for money to convenience shoppers and miss out on the opportunity presented by shoppers who are willing to pay a bit more for quality.
Quoting Nielsen statistics, the firm says latest figures support its argument, showing that sales of wine within the £6-8 price bracket are growing by 5% year on year in impulse.
It also says brands remain important, some 65% of convenience shoppers want branded wines compared to 55% on average for all other products. Its own brands such as Lindeman’s, Wolf Blass and Matua account for £37m worth of impulse wine sales, it says.