Treasury Wine Estates targets "underdeveloped" Travel Retail channel
TWE believes there is a major untapped opportunity in Travel Retail
Treasury Wine Estates (TWE) has unveiled a new strategy to boost its Global Travel Retail sales as it claims the channel for wine producers is “underdeveloped” and has a “lack of focus”.
The Melbourne-headquartered group believes there is an opportunity for the wine category as a whole to boost its annual Travel Retail sales from US$2bn to US$3bn by 2019. TWE research shows that wine currently represents only 21% of sales in the channel.
TWE employed market analysts Counter Intelligence Retail to survey around 2,000 wine shoppers in 15 airports worldwide. “The results clearly show that, while there are a high number of engaged wine shoppers in GTR, this interest is not being converted into sales,” Treasury said.
The group's new strategy focuses on:
- Find your wine – 'Category navigation' – research showed 80% of wine shoppers do not plan their purchase and therefore are very open to "positive influence" at the fixture
- Know your wine – 'Category education' – 60% of shoppers do not understand the different grape varieties and flavours,
- Love your wine – 'Brand engagement' – the research found one in four shoppers are motivated by in-store sampling
- Buy your wine – 'Optimising spend' – the survey found that purchase drivers, such as gifting opportunities and exclusivity, positively influence shopper buying decisions
Tom King, TWE's Global Travel retail GM said: “The purpose of the research was to better understand purchase motivations of shoppers. The category is underdeveloped and there has been a lack of focus and investment from the supplier base.”
Meanwhile, as just-drinks reported last week, Moët Hennessy has opened its first permanent airport store at Paris Charles de Gaulle airport.
Late yesterday, Diageo announced the divestment of part of its wine operations to Australia-based Treasury Wine Estates (TWE). Here, we take a closer look at what the deal includes: ...
- Pernod Ricard's Q3 2017 trading update - Preview
- Why Scotch must drop the 'malts good, blends bad'
- How soft drinks brands manage to offend consumers
- Heineken Q1 2017 by region - results data
- Remy Cointreau Fiscal-2017 sales - results data
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Scotch sales set to soar, despite recent struggles
- William Grant snaps up Tuthilltown Spirits in US
- TWE's Beringer Main & Vine Dry Rosé - NPD
- Edrington shifts innovation to US in shake-up
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Myanmar - ISA Country Report
- Global Wine Market 2016-2020