|Treasury Wine Estates launches Beringer Classics to hit premium US wine market in UK|
|Written by Richard Siddle|
|Tuesday, 22 May 2012 11:42|
Treasury Wine Estates is launching Beringer Classics in a bid to capture a significant share of the premium £6+ US wine category in the UK.
Treasury believes Beringer has the appeal both with the trade and consumers to make a real impact on what is the fastest growing area of the market with wines over £6.
To date the US category has "seriously under-performed" in the £6+ premium wine category, said Dan Townsend, with the vast majority of US sales below £5.
Beringer Classics, he added, will give it an opportunity to capitalise on the consumer's growing interest in more premium branded offers.
Whilst the US is the third largest wine category by volume its representation over £6 is "tiny", said Townsend.
He pointed to figures that show only 7% of US sales are between £6-£7, 4% are between £7-£8 and 3% is over £8. Compared to 42% of US sales between £4-£5.
Beringer Classics, which have been developed exclusively for the UK, features a Cabernet Sauvignon, Zinfandel, Chardonnay and Zinfandel Rose with abvs between 13.5% and 10% for the rose. The wines have all been bottled in the UK by Quinn and feature a label design from Amphora.
The wines are being targeted across all off-trade sectors with a focus on the major multiples, cash and carry and convenience sectors. They are priced at £8.99 but will be promoted down to £5.99 at least four times during the year.
"We see this as a real opportunity to grow the US category," said Townsend and could be the "key to unlocking the US premium category" which he estimated was currently around 1.5million cases a year.
The launch is an example of the new kind of working that Treasury is now able to exploit through the branded wine structure around the world. The wine group is split between its five major brands, Penfolds, Beringer, Rosemount Estate, Lindemans and Wolf Blass, each with their own managing director and global brand development team.
"We are really excited about the present and the future. The new branded structure means we are well placed to bring the right brands to the market," added Townsend.
He said the company was also well placed to continue to develop branded wine ranges that hit the "sweet spot" between £5 to £7, wines that give them a premium price point but also scale to build volumes.