Pink Potential

The rapid rise of rosé is bringing new consumers into the wine category. But what are the specific opportunities for the rosés of France? French Wines and db staged a seminar to find out

One very busy day in the wine trade calendar in the middle of March, French Wines and the drinks business brought together a panel of trade gurus to discuss the potential opportunities for French rosés within the now burgeoning category. The open discussion took place at one of the biggest French rosé tastings ever in the UK – over 300 rosés to taste and a special focus on dry Rosé de Provence.

The diverse panel of trade experts was comprised of Chris Hardy, buyer, Majestic Wine Warehouses; Carmel Kilcline MW, wine development director, Percy Fox & Co; Paul Waddingham, director, Les Grands Chais de France; Douglas Wregg, sales and marketing director, Les Caves de Pyrene; Allan Cheesman, MD, Cheesman Associates; Emma Nichols, buyer, Oddbins; and Paul Evans, senior brand manager at Mateus Rosé.

Allan Cheesman opened the discussion with the comment that he felt the problems faced by the rosé category are those that the whole wine category faces in the UK at the moment. “Rosé is not alone in the challenges it faces at the moment in this market, the whole still wine category
is subject to the very same challenges, namely retaining profitability and preserving reasonable levels of margin, the consolidation of the retailers and the subsequent range culling that takes place as a result, the restricting price point regime perpetuated by the retailers and the levels of promotional participation required by those retailers.”

Carmel Kilcline, while accepting the challenges, felt that the prospects for the rosé category were relatively positive in comparison to those faced by the red and white sectors. “The growth that we have experienced in the category over the last two years has been exponential and there’s room for more growth through diversification of styles and marketing to the consumer that rosé is not just a ‘pink option’ but also a premium option; it’s not just for women but also can become a more important part of the male drinking portfolio, and rosé is not just a sub-£5 proposition.”

But, as Emma Nichols pointed out, this view is very much one from the multiple grocer perspective. “At Oddbins the category is not split up that much, we certainly do not have any kind of definable segmentation by price or region. I wonder, however, whether this exponential growth in the rosé category is derived? Is it the consumer that is demanding it or is it just that they buy what we put in front of them? Is it really consumer-led? There is not much diversity in the category as a whole, styles and prices are limited, the category is very much product-driven.” She continued, “I don’t know what the case is for Majestic, but our rosé offer is different to that of the multiples.”

Brand power
Chris Hardy agreed: “The branded element is much less significant for us. The rosé category is growing at 50% year on year across our stores, but two-thirds of the offer is French. For us, price is much less of an issue for our consumer and they really do not want brands. France has driven the rosé category for us, which is not the case globally speaking in the sector.”

Paul Evans, who is responsible for the highly visible Mateus rosé ad campaign, feels that rosé “has helped bring consumers into the wine category, branded activity has definitely raised awareness for the category as a whole and, while the current profile for rosé drinkers is 20-35 year-old females, the potential is there to extend outside of this initial core audience.”

Again, Emma Nichols reiterated her question: “This might very well be the case, and all of us are looking to increase the category, but is it really the product itself that is doing that? Brand owners might very well be helping to extend the category as a whole but if the trade continues at the current rate of NPD you just know that somewhere along the line rosé will suffer from the same fate as other product groups and there will be total market saturation. Everyone seems to be developing a rosé at the moment.” And this in a category that most believe is lacking the structure and range to support it.

Douglas Wregg interjected at this point to give his views from an on-trade perspective: “Restaurants are my business, so brands are not an option. We currently have around 20 rosés on our list and, for us too, demand is growing, but at a different level. Rosé offers a great option as an all-round food wine. It’s a good compromise which people are just beginning to appreciate goes well with the now fashionable Mediterranean food styles.”

“This may be the case,” interrupted Allan Cheeseman, “but this is a 5m case market in the UK of which 3m cases are Californian. So really the market is being driven at entry point is it not?”

“Yes, but there is scope for development,” responded Wregg, “for example in further diversification of the market and this is where, perhaps, France could find its niche.”

And so the discussion turned to the opportunities available for French rosés to make their mark. Paul Waddingham pointed out that rosé could be a “potential lifeline for France if they maximise the opportunity. It can help lift the interest in French wines.”

Kilcline agreed: “What France has is diversity. The AOC offering is very different from that of Vin de Pays, and southeastern rosés have a completely different style to that of the Loire, for example. That’s where France’s potential lies.”

“That may be the case,” stated Cheesman, “but a lot of what is on offer can tend to be bland. What we need to see more of is the French producers maximising their versatility and the adaptability of their rosés with food. The different styles need to be developed.”

Wregg agreed: “What French rosé needs to do is preserve its notion of terroir, regionality and the expression of grape varietals – from single varietals like a robust Syrah rosé to the blended complexity of a good Provence rosé.”

“France clearly needs to concentrate on its own point of difference,” agreed Nichols, “not trying to go down the Australian route. There’s enough in France to really push the point of difference.”  db  April 2006