SOUTH AFRICA: Wine must follow FMCG route
Wine producers should treat their brands as a fast-moving consumer product, an expert has advised. Addressing a Wines of South Africa Marketing Intelligence Conference in Somerset West yesterday, Alexandra McPhee, associate director for the Australian KPMG Wine Industry Group said that, over the past 30 years, supermarkets in the UK, US and Australia had grown and now dominated off-trade wine sales, but they were property managers.
McPhee also said that for a wine producer to successfully gain or expand shelf space in this channel, they had to understand the psychographics and demographics of the target consumer.
All successful FMCG companies such as Frito Lay and Coca-Cola today invested in consumer research, and wine was slowly catching up, she said.
The age of Convenience or Destination shopping had arrived for both the on and off-premise trade, McPhee added.
From a wine perspective, however, consumer purchase emphasis could be simplistically segmented into high or low involvement, McPhee said. High-involvement consumers required breadth in the product offer across price points and interaction with the retailer, while low-involvement consumers wanted to purchase recognised brands easily and quickly.
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