Pernod in premium wine push

Pernod Ricard UK is turning the spotlight on its premium wines in order to bridge the gap between shoppers who are willing to trade up on wine, and those who actually do.

A mock-up merchandising unit

Of 2,500 consumers surveyed by the company, almost 60% said they were willing to spend more than £7 on a bottle of wine, though in reality only 11% do.

Pernod’s premium focus has been spurred on by the fact that light wine is in decline, with volumes down 2.3% on last year.

“The market is flat for the fist time in many years, so we need to inject value into the category,” admitted Pernod’s deputy managing director Simon Thomas.

“Premium wine is our fastest growing category, and with such a high percentage of consumers willing to trade up, it’s a compelling growth proposition,” he added.

According to Thomas, retailers could expect an average of £2.74 more a bottle from premium wine.

Defined by PRUK as priced between £6.50 to £8.50, research showed premium wine is appealing to both connoisseurs and aspirational wine consumers, though Pernod has chosen to focus its energy on “floating voters” that dip in and out of the category.

The company aims to make the most of its premium offering in the off-trade by making the wines readily available, attractive to look at and built around a special occasion.

Chris Shead, Pernod’s category insights director, believes the “enormous gap” between consumers’ intention to buy premium wine and actual buying habits provided a big opportunity.

“The intimidating wall of wine in supermarkets drives consumers pick wines by price. We desperately need to improve the in-store experience to entice shoppers to trade up,” he said.

Describing premium wine as “the engine room for growth,” Shead believes the current economic climate has lead to more people entertaining at home, who are treating themselves to better quality food and wine as a result.

To allow retailers to capitalise on the premium sector, PRUK will be offering help with in-store marketing, focused around promoting occasions.

“Special occasions provide the best opportunities for trading up, so we’re giving them a big push with on-shelf video barkers, occasion neck collars and occasion cases,” said wine channel director Lee James.

Pernod is also looking to maximise opportunities at deli counters with suggested premium wine pairings for cheeses and meats, and recipes on the back labels of Campo Viejo.

According to Neilsen MAT data to February 2, Brancott Estate’s average price is £6.53 – ahead of New Zealand at £6.29; Campo Viejo £6.50 – ahead of Spain at £4.62; and Jacob’s Creek premium still wines, average of £6.56, ahead of Australia at £4.93.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Press Officer

Speciality Drinks
London, UK

UK Private Clients Manager

Ditton Wine Traders
London, UK

London Business Development Manager

Maisons Marques et Domaines UK Ltd

Head of Buying - Spirits

Enotria&Coe
West London, UK

Liquid Production Supervisor

ATOM Supplies
Tonbridge, Kent, UK

Sales Account Manager – Cotswolds

Haynes Hanson & Clark
Gloucestershire, UK

Communications & PR Manager

Bruichladdich
Islay, UK

Senior London Account Manager

The Drinks Club
London, UK

On-Trade London Sales Executive

Domaine Direct
London, UK

Trade Marketing Manager

Boisset, La Famille des Grands Vins
Either, within the M25/ Cheshire/ Southampton , UK

Vinisud

Montpellier,France
18th Feb 2018

International Bulk Wine and Spirits Show

London,United Kingdom
26th Feb 2018

Spirited London

London,United Kingdom
15th Mar 2018
Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more