UK: Spier drops multiples presence to target UK on-trade

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South African wine producer Spier has abandoned the multiple grocer retail channel in the UK, focusing instead on the country's on-trade.

The company confirmed today (6 November) that it has restructured and extended its on-trade portfolio, in the belief that a presence in the multiple grocer channel is "detrimental" to its wine brands.

The change in strategy will see Spier's portfolio withdrawn from the multiple grocer channel early next year, but still available in the specialist independent and the wholesale sectors.

"Spier is not a GBP4.99 (US$8.25)/GBP3.99 brand, but a multi-award winning producer of premium wine," Spier's sales director Eve Jell told just-drinks. "We have made this decision as we believe that having Spier in the multiple grocer channel is detrimental to the long-terms ambition of the brand.

"In the UK, we have historically concentrated on the multiple grocer channel, thus positioning Spier as a large volume brand at the more price accessible end of the market. This is at odds with our overall brand positioning and what the Spier brand represents.

"We were struggling to gain listings in the on-trade and independent sector whilst still having a presence in multiple grocers, therefore we have withdrawn the brand, restructured the portfolio and are looking forward to carving a niche for Spier within the UK on-trade.

"We see the on-trade as a real area of opportunity for South Africa and Spier, and are committed to growing our brand in this channel," Jell added.

The newly-created Spier on-trade portfolio will be composed of five tiers - the premium positioned Private Collection tier, the Creative Block range, the Vintage Selection and Signature labels and the Colours range.

The portfolio and move into the on-trade will be supported by a number of brand activities and initiatives designed to secure listings and establish Spier as an on-trade specific brand.

Sectors: Wine

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