Southbank has landed

The business values of New Zealand’s Southbank brand are supported by a pragmatic "brand to land" philosophy, says Penny Boothman

FROM hobbits to bungee-jumping, New Zealand holds some of the most exciting and glamorous imagery of all the wine producing regions in the world – and one of the country’s newest brands is basking in this reflected glow.

However, as romantic as this picture may be, Southbank Estate was actually created with the refreshingly realistic goal of making a nice big profit.  The brand was started in 2000 by familyowned private investment company Ager Sectus Ltd, which conducted in-depth market analysis to gain a thorough understanding of the target audience and position its marketing, before the first grape had even been crushed.

This forward planning has provided the fledgling venture with swift growth in the UK market.  "They have what they call their ‘Brand to Land’ trading philosophy," explains Mentzendorff marketing controller, Jonathan Stevens.

"They set the brand up in a market-centric way.  Most wine companies are set up by a couple of guys who’ve got a bit of cash and are quite passionate about the product, but Southbank really had a plan from the outset."

UK agent Mentzendorff has been involved since early 2003, and has spent the last 18 months positioning the brand in the UK trade.  "The brand was created for export," Stevens continues, "and that’s quite unique.

Most brands start off on the domestic market and then move overseas, but Southbank Estate was created as a global brand, with a global philosophy."  Southbank is little known in its homeland but other export destinations include Belgium and the US, though the brand is also targeting Eire and the rest of Northern Europe, with the aim of securing listings in up to 12 countries.

Although Southbank is a market-led brand, the company also promotes the importance of its high-calibre production team, which ensures there is high quality wine behind the high quality label.  "We have a winemaker who is a young guy called Matt Mitchell.

He’s quite high profile in NZ and very central to the brand," says Stevens. Mitchell is one third of a "dream team" of New Zealand wine industry VIPs, completed by former Corbans chief executive, Noel Scanlan, and John van der Linden, former senior viticulturist with Montana wines.

"The brand is so young that it doesn’t really have its own strong image yet," explains Stevens. "The recognition it has is mostly about generic New Zealand values, ‘the riches of a clean green land’ and all that."

The Sauvignon Blanc retails at £6.99, a core price point for New Zeland wines, and there is also a Chardonnay, Syrah, Cabernet/ Merlot and Pinot Noir.  Production from the 200 acres of land in Hawke’s Bay and Marlborough is weighted towards red varietals as this was identified as a potential growth area.

"Southbank is about accessibility – in terms of price point, in terms of wine style, wine quality and, therefore, in terms of distribution," Stevens continues.  "The key thing at the moment is that we’re doing a lot of trade marketing to establish a good base for the brand."

Southbank recognises that there are inherent issues in selling wines from a country that produces as little as New Zealand.  "The USP for the trade is really about the business values of Southbank estate, which are based on consistency, continuity of supply and value for money the whole package put together."

The brand strategy for the UK market is to start growth through the independent and on-trade sectors. As Stevens says, "This is where you establish the quality positioning of the brand. We’re not aiming for the strarchy white tablecloth establishments, more regional restaurants and gastro-pubs, and we also have good off-trade distribution through places like Noel Young, Tanners, Lea & Sandeman, Fortnum & Mason and Selfridges."

"We’re looking for a broad spread of distribution through a number of trade channels, with a view to eventually seeding some of the larger multiples," says Stevens.  "But the way the UK market works, a) it takes time to build those markets and b) you have to have established credibility in the trade before you can develop meaningful brand value in the consumer market."

Future plans will be supported by ongoing PR and consumer marketing activity to raise the brand’s profile with the public.  "The foundations are very strong," concludes Stevens, "and that’s key. 

The trading proposition behind the brand is particularly strong and really unique and that gives us good opportunities for further growth."