Business

Vinarchy considers selling wine brands

Vinarchy, the global wine business created earlier this year following the merger of Accolade Wines and Pernod Ricard Winemakers, has revealed it is considering selling or retiring 60 wine brands.

CEO Danny Celoni said: “Brands that resonate with consumers are critically important to our business.

“We are rationalising our low volume, non-core labels that no longer resonate with consumers or align with our growth plans.

“In most cases, these are labels that are no longer trading or in single markets or channels in very small volumes. We will be working through this on a case-by-case basis over the coming months.”

The move is designed to help the company focus on building its three biggest global players: Hardys, Jacob’s Creek and Campo Viejo.

Celoni told The Australian Financial Review: “Those brands, we will not leave any stone unturned. We see an opportunity to get really focused on the three-pillar brands.”

Celoni added that Vinarchy would probably move to a consolidated wine portfolio with around 100 brands.

Greater focus on innovation

Celoni said Vinarchy was ramping up innovation by creating products, formats and experiences that consumers want.

“We want to tap into trends around lighter drinking and relaxed occasions to make wine more relevant,” he said.

“By reshaping the portfolio and stepping up innovation, we can put our effort where it counts and drive long-term category growth across our markets.”

Celoni told The Australian that Vinarchy would be seeking to reinvigorate the wine category with innovations such as Australia’s first-ever Spicy Rosé from Cupio.

Made with chillies, Pinot Noir Rosé, watermelon and a splash of citrus, the wine is light, fruity and finishes with a lingering chilli warmth.

“We’re looking to respect wine for what it was and what it is, which is thousands of years of heritage, but we’re also looking to disrupt and do things new in the category to attract new consumers to it,” he said.

Celoni suggested Vinarchy would also pursue innovation in wine bottle sizes, citing that 90% of the category is currently in a 750ml bottle and 14% ABV.

“When we look to FMCG [fast moving consumer goods], whether it’s snacking or confectionery, there’s different packs for different occasions,” he said.

“There’s one for me, one for us two, one for a big party, whereas we [wine industry] tend to box ourselves into one corner.

“We’re looking forward to how we can untap the opportunity that different formats offers, whether that’s things like a half-bottle or an individual bottle for me.”

It follows Australian Vintage’s single-serve Poco Vino brand smashing sales expectations. The brand only arrived on Australian shelves last month, but has already sold more than 100,000 bottles.

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Categories: Business