TWE believes there is a major untapped opportunity in Travel Retail

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.