Coona-Where-A

When it comes to creating strong regional identities for its wines, the Old World has a head start over the New World of at least 2,000 years.  How long before the New World catches up? Patrick Schmitt reports

IT’S INTERESTING to note that, while we are meant to be in the grip of globalisation, driven by multinationals and their mass approach to marketing, it is in fact all things local that seem to be receiving the greatest emphasis.

In particular, individual regions, defined by certain characteristics, not merely countries delimited by borders, are providing a point of difference for products in a world of increasing homogeneity.

In the arena of wine, regional peculiarities driven by a mix of soil, climate and history are being actively promoted by producers in an attempt to give identity to their wines.  Further, this sense of place focusing on terroir as a determinant of diversity, is being used to brand wines – seen at its extreme with the emergence of supermarket own-brand Rioja, Chablis or Champagne.

The approach is also not confined to the Old World, and although wines from the likes of Australia, New Zealand and North America once notably relied on nongeographical factors, for instance product presentation, variety or flavour as their differentiating factors, it seems origin is now playing a greater role in their marketing (especially due to the increasingly international nature of grape varieties and the resulting more uniform styles).

The Old World, of course, is a step ahead, historically home to the most famous wine producing regions.  

And so powerful are they as generic brands even the New World was tempted to "borrow" names from the most memorable areas, for example Californian Burgundy.

Such regional brand recognition could even be said to extend to the actual packaging, with producers in the New World, for example, using Bordeaux-shaped bottles to help shift their wines.

However, even these comparatively ancient appellations need to be carefully marketed to ensure their future place in an increasingly competitive industry.  Furthermore, any inconsistency in quality or price can quickly cause lasting damage and an image that may have taken centuries to develop can be destroyed almost overnight if a poor or overpriced wine leaks onto the market.

People will only pay a premium for Chablis over Australian Chardonnay, for example, if there is a noticeable difference in taste, one that they prefer and that’s consistent. Furthermore, the profile of wine drinkers is changing and a new younger generation of consumers is encouraging producers in the Old World to reconsider not only their image but the style of their wines.

In short, it seems the battle is between producer’s brands, varietal labelling and regional recognition when it comes to the marketing of wine.  But let’s consider first what regions already enjoying widespread distinction are doing to protect, as well as enhance, their image.

For instance, Burgundy, which although comfortably classed as the most well known of all wine producing regions along with Bordeaux and Champagne, is planning a makeover.

The famed appellation will soon be embarking in the UK on a generic promotional push to modernise its image as well as raise awareness of the diversity of its wines, according to Catherine Manac’h, senior account manager for wine, Sopexa.

This will be evident in a press campaign during autumn themed "Revelation" with the idea "to reveal what Burgundy has to offer" according to Manac’h, and to "encourage consumers to rediscover what Burgundy is all about".

Tied in with this, is a new logo that is not only meant to suggest a more modern feel to the place but also, being labelled Bourgognes (ie in plural form) it aims to "underline the complexity of the area and multitude of regions", Manac’h explains.

Although the drive is to highlight variety, the aim is also to increase the generic stamp of Burgundy and unify the five wine growing areas.  To do this the Bureau Interprofessionnel des Vins de Bourgogne has decreed that the words "Vin de Bourgogne" or "Grand Vin de Bourgogne" should appear on all labels of wines produced in the Chablis, Côte d’Or, Côte Chalonnaise and Mâconnais districts regardless of appellation category.

Chablis, in particular, may have become a regional brand in its own right, but the new aim is "to work together",according to Manac’h.

Another region which has developed a strong following but still requires ongoing branding is Rioja. Much of its fame, in fact, has come from 100% generic campaigns which began in 1975.

Despite this, however, although the area has a high name recognition, people don’t know much about the details of the wines – the same could, of course, be said of Burgundy and its appellations.

The Spanish term "crianza", for instance, is not one many understand or are even familiar with. And Bill Rolfe, marketing director at United Wineries, actually attributes much of the region’s particular identity not so much to the style of wine but to the name Rioja, which as he says "has three syllables, it is easy to remember and quirky".

He also believes some of Chablis’ success could be due to a similar reason, ie the simple but memorable sound of this two-syllable place name. 

But although "Rioja as a region is very well known," according to Daniel Brennan, marketing manager at Laurent Perrier, it does still require promoting generically, which revolves around increasing awareness of the soils, geography, ageing process and food pairing.

And hence a spend of €200,000 on advertising in the first four months of this year for Rioja – a campaign which Tom Perry, managing director of the Rioja Wine Exporters describes as "quite controversial" in its approach.

The aim of this generic marketing activity was not only to attract the attention of consumers but also "to emphasise the singularity of Rioja, define the terroir and try and promote it", according to Perry, "as well as the message: nothing has distracted Rioja from producing good wine".

And along with the advertising, Rioja has ensured the region’s future image of producing high quality as well as distinctive wines is secured by setting up a new institution. This occurred on April 9 when six winery associations and nine producers’ organisations signed a document creating the Organizacion Interprofesional del Vino de Rioja (OIPVR) to handle the medium- and long-term planning for the region.

This, however, will not replace the Rioja Regulatory Council which manages the day to day planning of the DO.

Furthermore, certain producers are experimenting with more New World styles for their wines to appeal to less seasoned drinkers.  For example, United Wineries’ Concordia which is a Rioja containing 20% Syrah, giving it a fruitier taste.

In this case an exception to the DO rules was made, granting the brand experimental status and allowing this variety in the blend.

However, beyond the already established regional entities keen to retain particular identities, are several areas which although yet to trip off the consumer’s tongue are working hard to promote themselves generically. Alsace, for instance, which has always lacked the recognition many feel it deserves, is attempting to gain a wider audience using a food-pairing theme in its "Eat/Drink" campaign which began in May.

This involves illustrating occasions when drinking Alsace becomes an obvious choice, for instance, "Eat Chinese – Drink Alsace".  Already the region is experiencing an uplift in exports to the UK according to the Alsace Wine Committee.

The Loire Valley is also trying to brand itself, but not as a region producing spicy food-friendly wines.  No, its point of difference stems from the "freshness and elegance" of its wines and this is being marketed through an association with plants.

In practice this involves the sponsorship of a show garden – this year was the second design – at the RHS Hampton Court Flower Show with the purpose of matching the aromas of the wines from the Loire Valley with the scents of the plants.

Extending this exercise the region has launched the Rosé d’Anjou Collarette Competition. The prize is a £20,000 garden makeover, details of which are found on neck labels on over 350,000 bottles of the pink wine.

All consumers have to do to enter is complete the phrase "Everything is coming up Rosé d’Anjou because…" It is worth noting that a similar competition in 2002 resulted in a 27% rise in sales.

An example of a longer running regional branded approach, but again for an area somewhat lacking the awareness of Bordeaux or Burgundy, is the Côtes du Rhône campaign. 

In its five-year span the "Think Red, Think Côtes du Rhône" Concordia was granted experimental status to allow Syrah into the blend Marques de Riscal hopes its Frank Gehry-designed bodega will act more tourists to Rioja, helping the region as well as the producer’s brand Bodega promotion has managed to build a striking and recognisable image for the appellation, clearly setting it apart from other French regions and attempting to give it a contemporary feel.

As well as advertising extensively, particularly in the London Underground system, the campaign involves a fully branded Côtes du Rhône eight carriage train – now in its second year of service – on the South West Trains network.

This is apparently seen by 9.6 million people each year.  But what about the New World? Are there any real regional brands? Well, to consider Australia, it is only in the last 10 years the country has defined official wine regions – its Geographical Indicators (GIs) – but most of these are new identities virtually unknown in the marketplace.

Nevertheless, as Wines of Australia comments, "We are aiming at the next level of regional recognition and regional styles [beyond promoting brand Australia]. 

The message centres around the fact that Australia is composed of different wine growing regions which will provide a useful means of orientation around the category.

The aim is not to create an ‘appellation system’, although the GI system is in place, but to create a sense of place."  And key to promoting generic regional brands in the New World is tourism – an approach certainly used to effect in Australia.

For instance, many consumers know the Barossa, Hunter and Margaret River from visiting wineries on holiday," says the Wines of Australia spokesman, "and it is our aim that they recognise the wine styles associated with these and other regions."

But while some may be aware of Australian regions, these are some way off becoming brands.  The Barossa Valley, like Coonawarra, may be famed for its red soils – the result of a cooperative marketing effort to differentiate it from other areas – but it is yet to achieve anywhere near the recognition of the famed French appellations, for example.

One New World region, however, that is reaching a high level of awareness is New Zealand’s Marlborough vineyards, although primarily because of their association with Sauvignon Blanc.

"People actually ask for Marlborough Sauvignon Blanc," says Sarah Watson from the Wine Institute of New Zealand.  "It is definitely a brand with a high consumer recognition." 

This last point is certainly open for debate and the region has a long way to go before it becomes a Sancerre, even if Marlborough is "the new home for Sauvignon Blanc", as Rolfe puts it – a sign among the trade at least that the district has become famed for its distinct and consistently good wines using this grape variety.

Moreover, it has established an image based not only on the quality of the wine but also on its unique taste.  As Brennan comments, "There must be an inherent point of difference."  In Marlborough this revolves around the crisp and exotic nature of the Sauvignon Blanc, while in Rioja, for instance, it comes from Tempranillo, limestone soils and oak maturation.

In Champagne, probably the best known generic wine brand in the world, on the other hand, authenticity comes from the particular terroir as well as the skilled blending process.

And what’s interesting about the New World is that, although its regional bodies don’t believe in a prescriptive approach to wine making, they are beginning to put in place certain controls to protect generic brands.

For example, in March this year the Napa Valley Vintners’ Association launched a new marketing programme called "100% Napa Valley".  This involves adding a voluntary mark to existing wine labels to certify that 100% of the wine contained in the bottle is actually made from grapes grown in the region.

It is hoped that this will not only help to protect the regional brand but also help consumers quickly discern the origin of the wine.

For most of the New World, of course, it seems it’s too early to start really pushing regional brands.  And that goes for some Old World countries too, such as Germany and Portugal.

As Noami Proudlove, account director at Wines of Germany admits, "The UK has not got its head around regions in Germany so we use grape varieties instead to promote our wine, for instance Riesling" – which, of course, is a technique that has been taken from the New World.

Another solution, if regional recognition won’t pull in the punters, is to produce powerful international brands, an approach also spearheaded by the New World.

Waverley’s Oliver and Greg’s is a good example, a brand that’s not only "trying to demystify wine and make choosing it easier for the consumer," according to Diana Thompson, Waverley’s group PR manager, but also a wine made from "wherever we can find the best quality liquid for the best price – the country of origin is not the main message".

Another example is the Thresher Origin brand which, despite its name, is a similar concept to Oliver and Greg.  It is assembled from several wine producing regions, and in its first few months of existence has already sold 2.2m bottles.

But does this pitch producer brand against regional brand? Not really. In fact, ideally the regional brand should act as an umbrella under which many individual brands can exist expressing their own unique style but within a basic framework (usually dictated by the AC or DO system).

However, as with any brand, sustaining a loyal following as well as building a reputation requires a constant commitment to quality.  This is perhaps clearly emphasised in the example of why Chablis’ performance has been poor in the US where too many still have strong memories of cheap Californian "Chablis".

Although in this instance the result is not the fault of the French, it proves the reputation of the region is still dictated by the nature of the product.