Concha y Toro to 'play long game' with mid-price Chilean wine Frontera

By Gemma McKenna

Published: 23 January, 2014

Concha y Toro UK is upping its marketing spend by 20% with a focus on core brands, a move into "everyday pricing" with Frontera and a shake-up of California at the £6 to £9 level.

Simon Doyle, general manager for CyT(UK) told harpers.co.uk that the global wine firm was "over-investing" in the UK - its biggest export market - to retain its market share here.

Doyle emphasised a renewed focus on flagship brand Casillero del Diablo, which will receive the lion's share of investment. Following a recent review the company changed its strategy on mid-level pricing. "There's an opportunity for Chile to establish itself at the mid-price range of £5 to £6. It needs a strong brand at every day regular pricing. Frontera has got the right credentials to play that role, where Blossom Hill sits for California."

Doyle said it will be using good quality varietals but softer styles with "much more engaging packaging" for Frontera. "We'll over-invest in that to compete. People have tried it before but they haven't played the long game. We think that time is right."

The firm is also releasing Bel Arbor from its Californian Fetzer estate, with an rrp of £7.99. It will be available in Chardonnay, White Zinfandel and Zinfandel. Doyle said it had identified a gap in the market for a Californian wine between £6 and £10. "We have taken our time with Bel Arbor. That's where investing in customer mechanics will really play a critical role."

It also recently listed Fetzer's Crimson and Quartz "brazenly Californian" red and white blends at Tesco, with an rrp of £9.99.

For more details on CyT(UK)'s plans, read our Q&A with Simon Doyle.

Printer friendly version