Home' National Liquor News : NLN JUNE 2016 Contents 14 | JUNE 2016 NATIONAL LIQUOR NEWS
Following on from a year of
company restructure and portfolio
rationalisation, McWilliam's Family
Winemakers has turned its attention
to creating innovative new products that will
unlock profits for the independent trade.
From October 2014 to December 2015,
McWilliam's reduced the number of wines in
its portfolio from approximately 440 to 285,
while the sale of Brand's Laira added a further
reduction of around 20 SKUs. According to
national business manager -- independents
Jamie Single, this period of rationalisation
allowed the company to gain a clear picture
across the business of what its core portfolio
would look like for the next three years.
"This [rationalisation process] has enabled
us to identify any gaps and be more disciplined
in our approach to NPD to ensure any new
wines we are creating actively drive category
growth by resonating strongly with Australian
wine drinkers," said Single.
WORKING HARD TO
INCREASE YOUR PROFITS
So the question is, which categories are seeing
the most growth? According to the ALSA-IRI
State of the Industry Report released in March,
Pinot Grigio is the fastest growing and most
significant dollar contributor to Bottled White
growth, having accounted for 46 per cent of the
segment's dollar growth in 2015.
In line with this, McWilliam's has introduced
a Pinot Grigio into its High Altitude series.
McWilliam's has been championing the
emerging Tumbarumba wine region, which
according to IRI Data MAT 20/3/16, is the
fastest growing region in NSW.
That same IRI data shows wines priced at
more than $12 are driving the wine category
growth as consumers are trading up to more
premium offerings. So, all of the new release
wines from McWilliam's are positioned within
this price segment.
In April, during a panel discussion held at the
IRI head office in Sydney, David Reberger from
Kemeny's and LSA NSW, said that Rosé appears
to be increasingly popular in the wine sector.
"If there's one big trend, it is Rosé. Historically,
we would look at our reds and our whites,
but you can take Rosé out now as a separate
category and I think Rosé is definitely here to
stay," he said. Evans & Tate Breathing Space has
introduced a Rosé into its line-up, in order to
capatalise on this growing trend.
Pinot Gris is the other positively trending
varietal, according to the ALSA-IRI State of
the Industry Report, recording solid growth of
eight per cent in 2015 on the back of 13.8 per
cent gains in 2014, and Evans & Tate Breathing
Space is pleased to announce its Pinot Gris is
now back in stock.
WINE QUALITY THAT OVER
DELIVERS ON PRICE
According to McWilliam's Wines brand manager
George Stupart, the past six months have been
difficult, having to have the conversation with
independent retailers around de-listing products.
But now, there are new products to take
their place, products which have been largely
customer-led and products that are going to
deliver great margins for retailers.
"Whilst the Australian wine market is seen
as mature, engaged higher spending consumers
will always have a thirst for new and
innovative offerings. By catering to their needs
retailers can drive higher margins and loyalty,"
As for brand new products, McWilliam's has
created Bad Henry Shiraz (RRP $18), sourced
from Australia's leading Shiraz regions, and the
Evans & Tate Time & Place Dry Red and Dry
White (RRP $13).
According to Stupart, these wines have been
aligned to retailer's needs around profitability
and customer loyalty.
"There's four main insights that we're
aligning to. Two are based on the retailer's
needs, which is about profitability -- so the
margins in these products are great; and
over-deliver on category norms. The other
is around loyalty -- by introducing new
independent exclusive products from well-
loved brands, we are helping retailers create
a point of difference that shoppers will keep
coming back for," he said.
"I would challenge retailers to review their
current offering with the same level of rigour as
we have reviewed our own portfolio and if any
wines on their shelves aren't over delivering on
their or their customer's needs, make space for
one that does."
MCWILLIAM'S DRIVING PROFITS
FOR THE INDEPENDENTS
MCWILLIAM'S FAMILY WINEMAKERS HAS TURNED ITS FOCUS TO INNOVATION RELEASING FIVE NEW SKUS TO HELP
DRIVE CATEGORY GROWTH AND PROFIT TO THE INDEPENDENT TRADE. DEBORAH JACKSON REPORTS.
"I would challenge retailers to review their current
offering with the same level of rigour as we have
reviewed our own portfolio and if any wines on
their shelves aren't over delivering on their or their
customer's needs make space for one that does."
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