France: Trade Talk

We asked: “How can France regain market share and which regions are best equipped to fight back?”

“France has struggled to establish French-owned and produced brands in the UK. Leading countries displaying good growth cover ‘branded options’ very well, and brands are still driving the market. JP Chenet has been successful, and we hope Renaissance can also fill this gap. Mainstream brands need to be established, but the regions must also become more aggressive with their marketing strategies, since they are, in many respects, the ‘brands’ of France. Regions showing promise are Bordeaux and the Rhône, and ‘brands’ making progress include the likes of Châteauneuf-du-Pape.”
Greg Wilkins, director, Brand Phoenix

“France, despite its UK sales decline, still has great un-tapped potential. Given the ‘fine wine’ strategy displayed by Tesco and others there is a clear move to tap this segment, an area France has an opportunity to extract an unfair share of. Increasingly the consumer seeks credibility from the products they consume. France’s vinous role in this appears convincing. The key will be unlocking this door from the outside i.e. looking at what can be done for the market rather than what the market can do for us. Those that are doing this already, such as Laroche, are already making good progress.”
Richard Cochrane, director, off-trade sales, Bibendum Wine

“France has to have a two-pronged attack: one for the mass-volume market and another for the wine-interested consumer. For the former, the game is about making an easy-drinking wine that tastes good, in a packaging that the consumer feels comfortable with. Region is irrelevant in this category. For the latter, they have to emphasise the traditional region, but with a wine style and packaging that resonate with wine drinkers in 2006. The Rhône has the best chance in this category. In both categories, French companies have to forge their own strategy.”
Jerry Lockspeiser, MD, Bottle Green

“France has the ability to regain market share if it makes a concerted effort to do so. It can bring in new consumers who are familiar with New World wines and have become more adventurous. However, France needs to make it easier for the consumer; labels need to be clearer, and a generic campaign would also be beneficial. In terms of the regions best equipped to fight back, the Southwest, Beaujolais, Burgundy and the Rhône appear to be outperforming the overall French market. Regions that are less bound by uncompromising appellation laws will be the first to succeed.”
Lynn Murray, marketing director, Hatch Mansfield

“France has so many assets, it can easily fight back – on paper. However, the French must simplify and clarify their offer. They should then create more brands, and focus on terroir and its amazing diversity. They must communicate in simple, clear language and reflect this simplicity in the way the product is packaged and sold. Each French region has a good offer in terms of quantity and quality, but what is paramount is a level of determination to fight for market share. This is a valid principle for those regions with the guts to succeed, some of which are now increasing their focus (and budgets) on the UK.”
Chris Skyrme, head of PR, Sopexa (UK)

“France is fighting back and will regain market share. Growth will be driven by strong brands that offer good wines at a competitive price in consumer-friendly packaging. This can already be seen in the swathe of new, modern French brands, such as Chamarré, Red Bicyclette, La Belle Terrasse and French Rabbit. The increase of more commercial brands will be the key to converting the new wine-drinking generation; for many of them the Old World is currently unknown. The strength of these brands will also have a positive effect on the more traditional French wines by bringing an increased awareness of the French wine category as a whole.”

Sarah Chilton, marketing manager, Thierrys Wine Services

“France can reverse the current decline by becoming more in sync with consumers. By concentrating resources – winemaking expertise, marketing, branding and promotional investments – on core strengths such as regional diversity and sheer quality, France should be able to compete more effectively. The Rhône and the Loire offer varietals and styles of wine that have been key to New World success, Bordeaux can benefit from the halo effect of its top châteaux, and VdPs (especially Oc and Côtes de Gascogne) can offer varietal-led brands.”
Nadine McCallion, associate sales director, Guy Anderson Wines