Vinarchy to axe 60 wine brands as it targets younger drinkers

Australia’s second-largest wine company is preparing a major overhaul. Vinarchy plans to cut almost half its brands, shift towards smaller formats and lower alcohol styles for a new generation of drinkers.

Having undertaken a drastic review of its grape requirements, Vinarchy, Australia’s second largest wine business, is planning to cull about 60 brands, some 40% of its portfolio, over the next two years.

Danny Celoni, the new chief executive of Vinarchy, says the company has too many brands and needs to focus its efforts on Hardys, Jacob’s Creek and Campo Viejo, the three brands with the most global recognition.

A strategic pivot towards younger drinkers

In addition, Vinarchy is planning a serious drive to tap into a new generation of drinkers by shifting to smaller bottles to appeal to customers who are more selective and drinking less.
This programme will include the launch of mini bottles, a chill-infused rosé and a mid-strength Sauvignon Blanc, further breaking away from the characterisation of Australian wines as high in alcohol.

This will be achieved through new packaging, revamped marketing campaigns and new lighter, lower alcohol wine varieties and spritzers.

The company’s new marketing push is beginning with flagship sponsorship of the Australian Tennis Open in Melbourne in January.

A new chief executive and a new direction

Celoni, a former Diageo executive in South East Asia, took over the reins at Vinarchy only four months ago following the creation of the company through the merger of Accolade and Pernod Ricard’s wine interests in April.

That followed the buyout of debt-laden Accolade by a consortium of corporate investors led by Bain and Company.

Operational restructuring across Australia

Vinarchy has already moved its headquarters from Accolade’s former Melbourne base to Adelaide and is in the process of restructuring its winery operations.

It is investing AU$30 million to develop its Rowland Flat centre in the Barossa Valley. From next year’s vintage that facility will undertake the operations previously based at St Hallett in Barossa and Tintara in McLaren Vale.

Berri Estates will become the primary commercial winemaking, packaging and warehousing hub.

Vinarchy is also closing the Rolf Binder and Banrock Station cellar door operations.

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