UK: Pernod Ricard targets 'floating voter' with premium wine push
Pernod aims to convert consumer interest in premium wines into sales
The 'Building Premium Wine Brands' scheme is based on fresh research that showed that 58% of shoppers are willing to spend between GBP6.50 (US$10.20) and GBP8.50 per bottle, but only 11.2% of all still wine sold in the UK off-trade is in this price bracket. Pernod said the strategy aims to drive “value sales growth” in wine, as volumes drop, by “accelerating” the trend for consumers to trade-up on special occasions.
Premium wine is currently the fastest-growing wine segment by value in the UK.
The company has identified two key problems, however; a lack of engagement at the point of purchase for consumers, and a focus on “mass” wine on shop shelves.
Speaking at the launch of the initiative in London today (March 15), Chris Shead, Pernod UK commercial strategy director said: “We think the premium market offers a very accessible opportunity to grow the market.
“People are treating themselves at home and that trend is set to continue with the current economic climate.”
Pernod also highlighted that premium wine offers greater margins for retailers as, on average, it brings in GBP2.74 more per bottle than mass-market wines. This means a 1% rise sales would increase overall retail value by GBP15m.
Among the company's plans to boost premium sales is increasing product messages in-store, promoting special occasions and highlighting matches at fresh food counters.
Shead added: “There's lot to go on with the floating voter.”
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