FRENCH WINES: Forging ahead

Dynamic changes in the French wine industry have paved the way for exceptional promotional activity, delivering the everyday excitement of French wines to more UK consumers than ever before

Anyone with an interest in French wines can’t have failed to notice that the seeds of change are currently being sown throughout the industry at all levels. Starting at the top, new president Nicolas Sarkozy has set concrete objectives for his ministers, proving that the French government is determined to support the wine industry. Minister of Agriculture Michel Barnier has been assigned to put in place a five-year restructuring plan, in order to recapture share in export markets.

These plans are being backed up by significant investment from the Ministry of Agriculture over the next three years, which will see increasing amounts spent on promotions in export markets, as well as continuing to fund a press office at the heart of the French wines campaign programme. This is good news for producers, who are also rising to the challenge with a more professional, business-focused approach. Both traditional companies and new entrepreneurial producers have realised the importance of brand building, which has led to the emergence of strong brands such as JP Chenet, Piat d’Or, French Connection, La Châsse du Pape, La Terre, Calvet, Blason de Bourgogne and Renaissance, which are performing well and showing above-average growth.

New legislation
These developments have been supported by new legislation: a reform of AOC and strengthening of the Vins de Pays offer through the creation a new category: Vins de Pays des Vignobles de France. “I believe that Vins de Pays remains one of the best assets for France as it clearly addresses the challenges on the UK and other export markets,” says Nöel Bougrier, president of ANIVIT (the Vins de Pays generic Marketing Board). “A consistent effort in quality, marketing and innovation, led by a new generation of producers, is the trademark of Vins de Pays and I believe this is already leading the category to renewed growth.”

Yves Bénard, president of the INAO is equally optimistic. “Our new reforms will close the door to certain wine professionals who today do not deserve to have the AOC badge on their label, and this will reinstate the AOC as a true kite-mark of quality,” he says.

Increased investment
So how do all these initiatives translate into market realities in the UK? An investment uplift of 30% means that by the end of 2007 a total of 270 wines will have been promoted as a direct result of the French Wines campaign, signalling a huge increase in profile for French wines. Right now, if you go into any major retailer you’ll be likely to find some kind of promotional activity à la française.

Morrison’s for example, has a French wine and cheese promotion running until December 3, while Asda is running a campaign designed to enhance the visibility of selected French wines over an eight-week period to December. This is the first promotion French wines has organised with Asda for four years and it aims to encourage customers to take a fresh look at France. Tesco will be running promotions until December designed to take advantage of special events and new listings, with the ultimate aim of maintaining a longer term promotional presence for French wines.

At Sainsbury’s last month, the French Wines investment led to a 25% blanket discount off the entire French wines range, when six bottles were purchased – meaning the whole French offer was on promotion at the same time. A generic promotion of French wines on this scale was a complete first for the supermarket. The promotion was supported by in-store posters and shelf barkers, as well as a significant above-the-line advertising campaign that included national press and radio spots. A flyer was sent to millions of homes, while an e-bulletin targeted 500,000 Sainsbury’s customers. (For more on the Sainsbury’s promotion, see box below.)

Last month also saw activity in 135 Majestic stores, with 20% off selected French wines. The promotion included 24 wines and was supported by consumer tastings in all 135 stores, as well as an invitation-only tasting for selected customers in 40 of Majestic’s top stores. This promotion was supported by online activity and special mailings.

Finally, earlier this year, from mid-April to mid-May, Waitrose repeated its hugely successful French Wines Showcase, with 48 wines on promotion. The offer was supported through branded POS material, in-store tastings and media activity both online at Waitrose Wine Direct and in Waitrose Thirst magazine. “We saw a 60% increase in French wine sales during the promotion compared with a non-Showcase week and our market share rose from an average of 10% to 13% during the showcase,” says Justin Howard-Sneyd MW, wine buying manager at Waitrose. “Our customers love French wine and it’s fantastic to have the support of French Wines in putting together a compelling promotion such as the French Wines Showcase that allows us to highlight the diversity and interest of French wine and help to educate our customers and not just rely on price promotions to sell more wine,” he adds.

www.wines-france.com/uk