Wine With a Twist
Luxury, limited edition wines and niche, regional variations are leading the pack in travel-retail this year. Lisa Phillips talks to some of the oldest European wine producers about their latest products.
NO longer the poor cousin of the more margin-friendly spirits category, the wine sector (now worth US$989 million in travel-retail and the eleventh most important product category in the business), is reflecting its growing status with ever more niche, premium and luxury ranges. “There is an increasing demand for high quality wines,” says Philippe Marion, commercial & marketing director for Barton & Guestier, the French wine supplier who joined the Diageo stable in 2001. “The consumer wants to drink less, but they are ready to spend more money on a good bottle of wine.” Sandro Boscaini, president at Masi Agricola adds that the demand is not simply for premium quality, but also for niche, regional variations. “There is a strong interest for wines from specific territories,” he says. “Obviously these wines have a specific history, tradition, culture and personality. They are often made using indigenous grapes and wine-making methods that are typical of the area they come from. These wines fulfil the need of the consumer to try new products of high quality, which are emotionally appealing.” Area export director for Bouchard Père & Fils, Luc Bouchard agrees. “There is no reason for passengers to buy wines and brands in travel-retail that they can find in each supermarket next door to their home at almost the same price. Travel-retail customers want to buy something unique, rare, of high quality, and a well-known brand. Otherwise why carry bottles of wine on a plane?”
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These trends are reflected in the latest product developments to hit travel-retail shelves this year. Bouchard is showing its new twin pack Beaune du Château Premier Cru in Cannes this month, an exclusive gift-pack retailing at around €66, and offering two Premier Crus from the heart of Burgundy. It is also offering a range of limited Grands Crus and Premier Crus in different formats (750ml, 375 ml and 1.5l) for its collector customers. Bouchard is a firm believer that you’re either a mass-market producer of wines, or a high-end player producing wines that reflect their territories and appeal to higher-spending customers. “They are two different categories, and you can’t play in both,” he says. The latter, he believes is most definitely the domain of travel-retail.
This is also the experience of Masi Agricola, which has already witnessed a 50% sales growth in the category since the beginning of the year, particularly with leading products Costasera Amarone Classico della Valpolicella and Campofiorin Double Fermentation. “The strong point for both wines is the originality of the wines themselves, as they are made using indigenous grapes and methods,” says president Boscaini. “They are the result of the fermentation of local Veronese grapes after a long Appassimento (drying of the grapes) on bamboo racks in drying lofts. They are products of the Valpolicella area and Masi Agricola is a leading producer of this wine-making method.” He adds that the company is beginning to trade up its travel retail offer in response to consumer demand. Its Brolo di Campofiorin is a case in point. “This is a special selection of Campofiorin with a more presitigious packaging,” he says. “This wine has been well received by the consumer without cannabalising Campofiorin.” The company has also introduced two SuperAmaroni on the back of its success with Amarone Costasera: the Riserva di Costasera Amarone and Vaio Armaron Serego Alighiere, produced from a single vineyard on the Serego Alighieri estate.
Barton & Guestier’s foray into the growing premium category was underlined with the introduction two years ago of a new range called Thomas Barton, comprising a selection of six wines and one high-end wine from the most prestigious Bordeaux appellations (Saint-Emilion, Margaux, and Sauternes). It has also developed a wooden case with six wines from the range called Bordeaux Experience, aimed specifically at the business market. This year’s focus is on the luxury end. “Thomas Barton is a range that has been developed exclusively for travel retail and on trade markets,” says Philippe Marion. “For the high end, Thomas Barton Réserve Privée, we are developing an exclusive luxury gift pack to support sales.”
For Spanish brand Cordorniu, the focus on premium end lines has long been the company focus, and one which is paying dividends now, as its 12% jump in travel-retail sales last year shows. Ten years ago, when monopolies like Heinemann and SAS only offered limited assortments, Codorniu made inroads with the ferries and inflight pre-order businesses, who at that time were more open to wines with a twist. These days, wine buyers across the board are experts in their field, and travel- retail as a whole is not only open, but positively encouraging more premium, niche wines. Codorniu’s area director Claudia Philippi refers to airports without arrival stores where the wine offer is so respected and sought-after by frequent travellers, that they’ll order their wine on the way out in the morning, and pick it up on the way home, even though they often lose the price advantage and have to pay out VAT. Sometimes the airports create opportunities for limited edition and vintage wines that are not possible domestically simply because they do not require the large quantities demanded by their domestic counterparts. This is becoming known particularly among frequent flyers. Codorniu continues to create products with a point of difference, the latest being a “rebellious new Rioja” from Bodegas Bilbaínas called Zaco. The new brand, modestly priced at around 10 euros and aimed at 20-40 year olds, is something of a coup for Codorniu. “It is a very severe region, with very strict rules,” says Philippi. “We had to be careful not to misuse the Rioja name, but we still wanted to be different.” It took a lot to convince the board, she said, but in the end, the company was successful, and Zaco, the “ultimate modern expression of Rioja” is the result.
With sales on the up in the increasingly quirky and upmarket wine sector, expect to see more of the same over the coming year.
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