Justin Knock MW predicts trusted wine brands will make a comeback in 2015

By Erin Smith

Published: 23 January, 2015

Justin Knock MW, one of the partners behind the recent acquisition of wine merchant Philglas & Swiggot, and a consulting winemaker for Encirc Wines, sees wine brands making a comeback with consumers, Italy facing potential supply problems and questions whether New Zealand can keep its momentum going as hot topics to watch in 2015.

Justin Knock MW, one of the partners behind the recent acquisition of wine merchant Philglas & Swiggot, and a consulting winemaker for Encirc Wines, sees wine brands making a comeback with consumers, Italy facing potential supply problems and believes New Zealand can keep its momentum going as hot topics to watch in 2015.

With the economy improving and following the fall out of several supermarket scandals, consumers are primed to turn to trusted brands once again predicts Knocks.

Knock said: "Several things seem to be moving in the favour of brands again, although many may not be feeling that much improvement at the moment. Brands are back at the table in terms of trust. There is no doubt that over recent years, and in particular since the horse meat scandal of exactly two years ago, consumers' trust in supermarkets has been shaken."

Although slowly, the economy is improving which could encourage consumers who have relied on own label brands from supermarkets during the financial crisis to once again explore trusted wine brands. Knock believes that cost cutting measures implemented by some supermarkets had disappointed some consumers and as a result now offers brands an opportunity to win back wine consumers.

"Their parsimony that favoured own labels, exclusive labels and consumers' leaner wallets during the depths of the global financial crisis and beyond is now beginning to look like it has cut too many corners, and as a result, damaged trust with consumers. Brands are well placed to drive a wedge into this during 2015 and trust will be high on peoples' agenda as their disposable income improves," said Knock.

Knock also predicts that for 2015 suppliers may want to stock up on Italian wines as 2014 was a challenging harvest for Italy. With the rocketed success of Prosecco, Knock recommends stocking up on 2013 Italian wines to ensure that enough supply is on hand to meet the growing demand.

Knock said: "It's clear that out of all the European nations, Italy suffered most during 2014. A wet summer continued into a cool, damp autumn and, across all the major regions but especially the north, harvest quality and quantity is, or should be, down. With a low likelihood of such yields in 2014, the question remains - how can Prosecco maintain its growth and popularity? Elsewhere in Italy, it may be prudent for UK retailers and importers to go long on their 2013 Italian volumes."

New Zealand, following two record harvests may be facing a Sauvignon Blanc grape glut, but for 2015 Knock predicts the popularity of New Zealand wines will continue through 2015. Beyond this coming year however, Knock speculates there may be slow down in demand for the region's wine.

"Having punched out consecutive record harvests, New Zealand is swollen with Sauvignon Blanc and no global market seems to be crying out for more... The crunch time is now as 2015 intake looms. I'd back the Kiwis to keep momentum this year, but trade interest has already waned in the wines and consumer tastes are sure to follow. It's just a matter of when," said Knock.

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