1 RANGE STRATEGY 16 May 2022
Mar 26, 2015
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RANGE STRATEGY
10 April 2023
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Wyndham Estate master brand
BIN still
Old brand architecture
VineyardSelection
BlackCluster
GeorgeWyndhamSuper premium Ultra premium Icon
Premium Premium
Super premium
Line extensions
SR &RS
Corebusiness
BIN sparkling1828 BlockBuster
Icon
Accessible Vitality Founder Channel Place Expertise% of WE LV09 CM……… 91% 1% 6% 2% 0% n/a 0% n/a
[A bit of a mess]
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Wyndham Estate master brand3 core facets: pioneering, genuine, craftsmanship
BIN still wines
New brand architecture
Premium
Corebusiness
VineyardSelection
Black Cluster
Super premium Ultra premium Icon
Embody core facets? √ √ √ √ Peripheral facets? Accessible Founder Place Expertise
Line extensions
GeorgeWyndham
[Simpler andmore attractive to the markets]
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Four core ranges
Range Role Occasion
BIN
A$16
Index 100
Flagship range that embodies the master brand, represents accessible entry into the brand franchise, leads brand
communication and is the engine for volume and profit.Everyday pleasure
George Wyndham
A$22
Index 135
A tribute to the founder and his pioneering spirit (which helps to dramatise the brand story). It targets more
experienced, higher involvement consumers who want to experiment with higher quality, more complex, regional
wines.
Personal indulgence
High end entertainment
Vineyard Selection
A$35
Index 220
Shiraz from 3 different regions to demonstrate how our signature variety responds to different regional terroir. The
Hunter Shiraz would be a tribute to the brand’s Hunter Valley roots to reinforce the brand’s sense of place and
unique heritage (“where Australian Shiraz began”).
Memento
Milestone events
Gifting
Black Cluster
A$99 Index 600
Underline the brand’s expertise by collecting show awards, gaining Spectator ratings, driving gatekeeper endorsement and generating PR buzz. To achieve this, we need to move away from the Hunter and probably become multi-regional.
Ultimate reward
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Rationalising sub-brands
Range Rationale
1828Was de-branded in 2008.
To elevate the entry point and brand image.
Regional Selection
Low volume (has been duty free and cellar door only).
Main SKU is a Hunter Shiraz.
Show Reserve
Low volume, duty free exclusive – but it lacks medals.
GW offers a better expression of the brand story, a more distinctive name, more medals and a wider range.
Vineyard Selection offers terroir story and gift solution at a higher price.
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• BIN range– Core business– Widely available and visible– Represents accessible entry into the brand franchise– Premium price (30% above JC Classic) competing with Penfolds Koonunga Hill and Rosemount Diamond Label– Tight range of popular varietals
• Spearheaded by Shiraz (signature variety)– Central to our brand proposition (upscale Shiraz specialist)– The cornerstone of our vision, advertising creative, gatekeeper education tools, etc.
• Also offering non-Shiraz for developed markets to compete in attractive segments such as Chardonnay– Today, non-Shiraz at BIN level generates CM of >A$13m
• Avoiding low-volume niche varietals• Minimising overlap with Jacob’s Creek Classic and Montana
– No Rose, Riesling, Pinot Grigio, Sauv Blanc, etc.
– Delivering 11% ROCE and CM of $24.5m (LV09)
Portfolio role
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The proposed BIN line up
BIN Signature Tactical New
Shiraz Cabernet Sauvignon Shiraz Malbec
Shiraz Viognier Merlot
Shiraz Grenache Cabernet Merlot
Sparkling Shiraz Pinot Noir
Chardonnay
Semillon Sauvignon Blanc
Verdelho
ROSE Shiraz Rosé
REDS
WHITES
• Focus on signature SKUs
• Add other SKUs based on local varietal segment size / trend and level of brand maturity
• Verdelho and sparkling Shiraz are low volume and competing in small profit pools
• Shiraz Rose has not worked
• PRA and Corby are comfortable with these SKUs being deleted
• Shiraz Malbec is planned for Canada where the Malbec segment grew by 80% last year
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• BIN range is clearly differentiated from JC Reserve on the basis of
– Roots: Hunter Valley versus Barossa Valley
– Varietal proposition: Shiraz specialist (Shiraz and Shiraz blends, but no BIN Rose, Riesling, Pinot Grigio, Sauvignon Blanc) versus varietal generalist
– Brand positioning territory: Intense sensation versus true character
– Wine style: Intense, generous, ripe and luscious versus elegant and refined with a soft finish
– Current users: Males aged 40+ versus males and females aged 30+
– Consumer target: Medium involvement consumers of Penfolds Koonunga Hill and Rosemount Diamond Label versus higher involvement consumers of Peter Lehmann and Taylor’s
– Occasion: Everyday enjoyment (relaxing and unwinding at home) versus high-end entertainment and personal indulgence
• The advantage of having a portfolio of strong Australian wine brands is that it enables us to target a broad variety of consumers with a range of wine styles that meet multiple consumer needs
Differentiation v Jacob’s Creek
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• George Wyndham Founder’s Reserve– A tribute to the founder– Dramatise the brand story– Super-premium price (30% above JC Reserve)– Competing with Penfolds Thomas Hyland– Targeting higher involvement consumers– Driving a more premium perception of the master brand– Shiraz focus / simple range
• The GW range is all about Shiraz• While there are some tactical non-Shiraz SKUs for mature markets, the focus is Shiraz• Minimise overlap with JC Reserve and Montana
– No Cab Sauv, Pinot Noir, Chardonnay, Riesling, Sauv Blanc, etc.
– Delivering 11% ROCE and CM of $1.5m (LV09)• Note: Domestic ROCE is 9% (LV09)
Portfolio role
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The proposed GW line up
GW Signature Tactical New
Shiraz Cabernet Merlot
Shiraz Grenache
Shiraz Tempranillo
Shiraz Cabernet
Semillon Sauvignon Blanc
ROSE
REDS
WHITES
• Focus on signature SKUs (Shiraz)
• Switch Shiraz from Langhorne Creek to McLaren Vale (more premium and better recognised)
• Delete Shiraz Cabernet (cluttered segment, more potential with Shiraz Tempranillo)
• Only sell tactical SKUs where it is justified– In markets where GW is an on trade exclusive (i.e. red with a white partner)
– Markets where there is a large Cabernet blend segment (e.g. Asia)
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• Vineyard Selection– Terroir proposition
• Demonstrating how our signature variety responds to different regional terroir
– Ultra-premium price (mid $30s)– Premium channels
• Duty free, prestige restaurants, fine wine accounts, etc.
– Shiraz focus• Hunter Valley Shiraz• McLaren Vale Shiraz• Coonawarra Shiraz
– The Hunter Shiraz would celebrate our Hunter roots– And reinforce a strong sense of place– Being true to our end tag “where Australian Shiraz began”– Recognised by gatekeepers as outstanding Hunter Shiraz
Portfolio role
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• Black Cluster (1 SKU)– Change it from Single Vineyard Hunter Valley Shiraz– To our best Shiraz– The ultimate expression of ‘intense sensation’ – A trophy hunter that can consistently gain excellent ratings in North America in order to demonstrate the brand’s
• Expertise with Shiraz• Fine wine credentials
– Wine would be rich, powerful, assertive and expressive – but also modern, stylish and creative– Launch timing to be confirmed
Portfolio role
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Proposed range x DP market
SKU Canada Aust. NZ Ireland USA
BIN 555 Shiraz P P P P P
BIN 515 Shiraz Viognier P P P
BIN 525 Shiraz Grenache P P
BIN 525 Shiraz Malbec P
BIN 555 Sparkling Shiraz P P P
BIN 444 Cabernet Sauvignon P P P P
BIN 888 Cabernet Merlot P P P P
BIN 999 Merlot P P P
BIN 333 Pinot Noir P P P P
BIN 222 Chardonnay P P P P
BIN 777 Sem Sauvignon Blanc P
George Wyndham Shiraz P P P P P
George Wyndham Shiraz Grenache P P
George Wyndham Shiraz Tempranillo P P P
George Wyndham Cabernet Merlot P P P
George Wyndham Sem Sauv Blanc P P P
Vineyard Selection P P
Black Cluster P P P P P
More mature Less mature