Treasury Wine Estates commits to multimillion pound spend in UK off-trade after soaring sales

Treasury Wine Estates is committing itself to a multimillion pound spend across the UK off-trade this summer as it announces a 17% increase in its own off-trade sales to £193 million in 2013-2014 (Nielsen MAT March 29, 2014).

It is to focus its unspecified investment in its core brands, Wolf Blass, Lindemans, Rosemount Estate and Matua, and target the key £6-£8 category which is enjoying 21% year-on-year growth in UK grocery outlets.

Key activity will include a new addition and a fresh new look for Rosemount Estate’s Blends range, an on pack promotion for Matua in the convenience channel, and the return of Lindeman’s Sunshine campaign. 

TWE has revealed strong growth for each of these core brands in 2013-2014 (Nielsen MAT March 29, 2014) with Wolf Blass increasing overall sales by 16% to £83m, Lindemans by 12% also to £83m, Rosemount by 8% to £12m. Matua has grown to be a £4m brand in its first year.

In the impulse category Lindemans increased sales by 19%, Wolf Blass Yellow Label by 11% and Red Label by 1%.

Specific brands activity will see a new Rosemount Estate Pinot Grigio Sauvignon Blanc Vermentino blend launched in August with a promotional price of £6.49 down from £8.99.  It is also introducing a packaging redesign on its Blends range to be introduced in July. 

Shaun Heyes, TWE’s customer marketing controller, believes the new look and promotional activity can bring “higher spending shoppers” into the Australian category and “unlock £6.5m worth of category growth by converting wine shoppers into higher spending Australian wine shoppers”.

Matua is looking to build on its first year performance with a on pack promotion exclusively for the impulse channel between May and September. Consumer will be given the chance to win a trip for two worth £10,000 to “experience the real New Zealand”.

Lindemans is to repeat “It’s the Sunshine that makes it” annual campaign with a range of media spend including outdoor, digital and press tie-ups. TWE will also be running Lindemans promotions in some grocery retailers with a special symbol group and cash and carry competition to win extra stock and other business prizes.

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