Subscriber login Close [x]
remember me
You are not logged in.

How to drive a wine brand in the UK on-trade by Wine Business Solutions

Published:  27 February, 2015

Peter McAtamney, principal at research body, Wine Business Solutions, gives his personal assessment on how best to drive and build a wine brand in the UK on-trade with a particular nod to Kleine Zalze, which has been named number one South African brand in its latest 2014 Wine On-Premise report,and Matthew Clark which is reaping the rewards of an astute wine listing strategy

 

 

Peter McAtamney, principal at research body, Wine Business Solutions, gives his personal assessment on how best to drive and build a wine brand in the UK on-trade with a particular nod to Kleine Zalze, which has been named number one South African brand in its latest 2014 Wine On-Premise report, and Matthew Clark which is reaping the rewards of an astute wine listing strategy 

It's the litmus. It's the ultimate test. No other arena tests the mettle of a wine brand like the UK on-trade.

What does it take to win when faced with such intense global competition? Kleine Zalze provide a great working case study example. I spoke to principal, Kobus Basson back in 2009 after we launched our first Wine On-Premise UK report in which Kleine Zalze was named as the most listed South African wine brand that year.

"People talk to me about our position in the UK on-trade like it has been some sort of overnight success. What they are not appreciating is that for 10 years or more, I've traipsed back and forward across the Midlands and North of England talking to every gastro pub owner and everyone else in the on-trade who would listen to me."

From our research, Kobus, chose well. Beyond Champagne brands, there is very little evidence that wine brands exist at all, for example, in the London market.

The relentless pursuit of fashion by restaurants in the capital has meant that no brand has appeared consistently in our Top 20 most listed during the last six years.

Only five brands - Concha y Toro, Alpha Zeta, Chapel Downs, Bergerie de la Bastide and Spanish Sherry brand, Hidalgo - have made it into the Top 20 on three occasions.

Kliene Zalze by contrast, thanks to the loyalty that all of that hard worked fostered in regional England, has been the number one most listed South African brand nationally three times, number two twice and third only once.

Getting distribution right

Douglas Blyde visits the Hunt family restaurant Pavilion

Success in the UK or any on-trade market is all about distribution partnership.

In 2009 Matthew Clark looked unchallengeable. But then the market changed. With the emergence of the 'Masterchef generation' and the resultant rapidly increasing sophistication of UK restaurants, mainstream mass-market brands were no longer welcome.

Distributors like Bibendum, Liberty and Enotria who placed a great emphasis on portfolio construction based upon the best quality producers from the highest profile regions drew the upper hand so much so that Waverly TBS was driven out of business. Brands like Hardys, Jacobs Creek and Penfolds all but disappeared from wine lists.

Matthew Clark had to respond. How did they do that? They used a dual strategy of developing brands targeting the biggest growth areas - Sant'Orsola (Prosecco), Don Jacobo (Rioja) Rare Vineyards (the Languedoc) - coupled with careful brand management of some of the world's most respected brand names - Louise Jadot, Torres, Cloudy Bay and, as it is turning out, Kleine Zalze. Our research shows Matthew Clark's listing success is directly reflected by their financial results this year.

As Kobus told me years ago: "Other producers used to mock me saying that they had sold their three containers to British supermarkets and now they must go hunting."

As we have all seen, being a small supplier to a major distribution channel is folly. With hard work, focus, good partnerships and solid market understanding through research, small to medium producers can do well, even in this toughest of markets.

* For more information on the Wine On-Premise UK 2014, which costs A$495, contact peter@winebusinesssolutions.com.au

* You can analyse consumer drinking trends in the UK on-trade by age group and for every region in the UK with Harpers exclusive Demystifying the Consumer in the UK On-trade report in our Insights section.

Keywords: