Reader opinion from Australia & UK

Reader opinion

Reader: “Just got around to reading your report. I think you were actually quite reserved in discussing the Truvée* article. As far as I know, there hasn’t been a successful brand aimed at women (outside of women’s products) in any product category. Looking at actual sales in multiple countries shows that even when companies aim their advertising and promotion to one gender, or for that matter one age group or region, it either survives or dies based on sales across the market. Often these products will gain some small split, like 55:45, but that’s about it.”

* Truvée is a brand that Treasury Wine Estates is developing for women. The team responsible is all women.

Reader: “Research on another attempt to launch a female oriented wine brand showed that women felt condescended to with these frilly and pink-type packages. I am a bit surprised that these obviously successful women at Treasury thought this was a good idea – or probably they had no choice. It seems condescending to them to put such a team together and think it will somehow equate to better market success.”

I was berated for being too soft on TWE, but there was little information available to me at short notice showing whether wine targeted at any specific group had been a success. I voiced my doubts and still hold them.

UK Opinion

In a private exchange with a person deeply involved with the UK wine trade, and a keen observer of all aspects of wine, the following points arose.

On the subject of sterling after Brexit:

“It’s a major time of change, the full effects of the movements of Forex will really start to hit in early 2017. I think at the moment the retailers are in the main holding their prices because of their Christmas campaigns, but as most of their pricing will be in Euros, AUD$, and USD$, so early 2017 will be an interesting few weeks.”

On Australian wine in the UK:

“We are already seeing a slight decline for Australia. A lot of the volume in the Australian numbers here has been due to the promotional strategies of Accolade. But now Paul Schaafsma has resigned as CEO I think more attention will be paid to their bottom line, and less of ‘let’s drive the volume’, so we should see a fall in Australia in the UK market.”

If not Australia, who will fill the popular gap?

“I don’t think that there are any other countries that are willing to take up the volume challenge here, so in six months’ time it will be interesting to see the average prices in the market. They could be 10 per cent higher than currently.”

Interesting points. The sterling-dollar exchange rate has improved this past week. It was down to 49 pence in May.


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