Rosie Davenport
The number of wine brands on the market could be substantially reduced unless producers learn from fmcg heavyweights like Heinz, a leading supplier has warned.
John Mills, MD at Grants of St James's Wines, which owns the Stowells of Chelsea label, warned that companies must take control of their "destiny" to combat discounting by the major retailers.
Announcing a £1.5m push for number three off-trade wine brand Stowells, Mills also claimed that one way to stop the multiples selling on price alone was to offer them an alternative marketing strategy.
"In five years' time the Heinz and Coca-Colas of the wine market will be the companies which embrace the full marketing mix with sponsorship and innovative packaging and merchandising, not just BOGOFs," he said.
He added that the wine trade could end up in a similar position to the beer category, which is dominated by a few main players and embroiled in arguments over pricing.
"Small producers are desperate for listings in the multiples and they'll drop their prices to get them. But brand owners need to look at the bigger picture and are responsible for their own destiny. The ones who say they are beholden to retailers on price won't be around in five years."
He said the market was already suffering because discounting was squeezing margins, making investment in brands even more difficult.
The £1.5m spend on Stowells will include a makeover and advertising to flag up the brand's international values.
Mills is talking to buyers about setting up separate branded fixtures to house the entire range in one place and to tie in with the new marketing approach.
{{MARKETING }}
The number of wine brands on the market could be substantially reduced unless producers learn from fmcg heavyweights like Heinz, a leading supplier has warned.
John Mills, MD at Grants of St James's Wines, which owns the Stowells of Chelsea label, warned that companies must take control of their "destiny" to combat discounting by the major retailers.
Announcing a £1.5m push for number three off-trade wine brand Stowells, Mills also claimed that one way to stop the multiples selling on price alone was to offer them an alternative marketing strategy.
"In five years' time the Heinz and Coca-Colas of the wine market will be the companies which embrace the full marketing mix with sponsorship and innovative packaging and merchandising, not just BOGOFs," he said.
He added that the wine trade could end up in a similar position to the beer category, which is dominated by a few main players and embroiled in arguments over pricing.
"Small producers are desperate for listings in the multiples and they'll drop their prices to get them. But brand owners need to look at the bigger picture and are responsible for their own destiny. The ones who say they are beholden to retailers on price won't be around in five years."
He said the market was already suffering because discounting was squeezing margins, making investment in brands even more difficult.
The £1.5m spend on Stowells will include a makeover and advertising to flag up the brand's international values.
Mills is talking to buyers about setting up separate branded fixtures to house the entire range in one place and to tie in with the new marketing approach.
{{MARKETING }}
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