UK: Treasury Wine Estates targets convenience channel boost
TWE believes there is a major opportunity for wine producers in the UK convenience channel
Treasury Wine Estates (TWE) is upping its focus on the UK convenience retail sector as it claims there is a “significant opportunity” to boost wine sales in the channel over the next five years.
The Lindeman’s producer believes the wine industry has the chance to grow annual sales to around GBP1.2bn (US$2.02) in the UK impulse sector by 2019. Current wine sales in the channel total around GBP1bn.
At a media briefing in London today (2 May), Shaun Heyes, TWE's customer marketing controller for Europe, said: “Two hundred million (pounds, of extra sales) sounds like a really, really big number, and it is. But, when you break it down, it's about getting six existing shoppers to buy wine regularly when they are in the (convenience) store.”
Figures show that only 5.3% of convenience retail shoppers buy wine within these stores. Around 95% of wine sales within the impluse sector are branded products.
“We believe there is a significant opportunity within the convenience channel,” said Heyes.
TWE is encouraging retailers to stock a more “balanced” range of wines, particularly those around the GBP6 to GBP8 price point. The price segment has seen 21% growth in the last year in the UK off-trade as a whole, TWE said.
The company also revealed today it is launching new blends for its Rosemount Estate brand, which will be available in the UK from August, backed by a major marketing campaign. The brand's packaging is also being updated.
TWE plans to run retailer trials to show the impact of changing wine fixtures to simplify consumers' experiences in stores. It will also be presenting at trade shows and giving literature to convenience retailers explaining how to boost wine sales.
Earlier today, the Australia-headquartered firm denied reports that it in discussions with Pernod Ricard to sell the US arm of its business.
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