Treasury Wine Estates (TWE) is to introduce a French portfolio that aims to “disrupt” the traditional old world mould of French wines.
The new proposition will be launched in the first half of 2018 with an initial focus on North Asia. It was announced at the company’s inaugural Investor Day in Napa, California and will build on TWE’s existing portfolios from Australia, New Zealand, California and Italy.
The French portfolio will include three tiers of wines. The top tier will feature a red Bordeaux with a Cru Bourgeois classification and a target price of CNY1,400 (US$202) per bottle, as noted in a TWE investor presentation [the company used the Chinese currency for its target price as the China market is pivotal strategically].
A luxury tier “showcasing the best of France” will feature a red Bordeaux and Burgundy, a non-vintage Champagne and a Chateauneuf De Pape red. Each has a target price of CNY600 (US$87).
An “accessible luxury” tier has a target price of CNY300 (US$43) and includes red Bordeaux and Burgundy, a non-vintage sparkling and a Provence rosé.
After launching in North Asia, TWE plans to market and sell the portfolio across other regions.
TWE Chief Executive Officer Michael Clarke said the company wanted to embed “greater sustainability, discipline and balance across all four regional business models” while strengthening its brand portfolio, with “diversified sourcing to meet global demand”.
Clarke stated: “We have been investing behind the brands that can deliver growth on a global scale for our business with stronger marketing activity to drive consumer demand across all of our regions. We’ve also spent time refreshing and ‘fixing’ many of our brands, with a number of our Californian wine brands recently undergoing packaging refreshes, including Beaulieu Vineyard, Sterling Vineyards and Beringer.
“French wine is now an exciting new addition to our portfolio offering. While the French category is very established globally and regarded as a quality trustmark, particularly in North Asia, we will bring a ‘new world’ mentality to marketing and selling this wine.”
At the Investor Day, Clarke said the French portfolio was the latest step in an ongoing journey of growing TWE’s business model and brand portfolio.
“We’ve set the business up for long-term, sustainable success, while continuing to preserve the scarcity and value of our wines globally,” he explained. “The new French portfolio plays an important role in our strategy, as we look forward to continuing to deliver value for our shareholders.”
