Constellation unveils premium BIB offer

Constellation Europe is launching a major breakthrough in packaging innovation with the introduction of a premium boxed wine offer for the retail sector.

From 1 November, in an exclusive deal with Sainsbury’s, the producer will roll out its Hardys Nottage Hill brand using the new 2.25 litre FreshCase packaging format. Constellation also plans to release its Banrock Station Reserve wines in this new packaging.

The company is also launching FreshCase into Denmark, Norway and Sweden, where the bag-in-box market has a higher penetration among consumers, selling 17 million cases per year.

The FreshCase packaging has been specially designed to be more compact than the existing three litre-box format, with a handle which converts into a prop, tilting the box so that it pours easily from the fridge or sideboard. Once opened, the vacuum seal allows wine to stay fresh for up to six weeks.

The new packaging is also designed with green appeal. Each box weighs 70% less than its equivalent three bottles, and uses up 30% less space, reducing the carbon footprint generated during transport. All wines in this format will be bottled at Constellation’s site in Avonmouth, further reducing transportation and breakage costs.

For retailers, FreshCase offers the potential for increased profitability per square metre, since the packaging takes up the same space as a single bottle. With a suggested selling price of £19.99, reduced to around £16.99 during promotional periods, this format offers consumers an 11-12% discount on a standard bottle purchase, while encouraging a higher spend on wine.

Having spent 18 months developing the idea, David Cunningham, Constellation vice-president for business development, explained: “We believe this is a breathtaking innovation from a packaging perspective for the premium wine sector.

“The type of consumer we are targeting is the high potentials: the young, affluent consumers looking for style and quality. The current bag-in-box with its visibility and functionality is not really attracting them.”

Cunningham believes this new offer will bring growth to the UK bag-in-box market, currently worth just over £300 million a year, or 10% of the market, but which has remained static in recent years.

Holly Lee, wine buyer for Sainsburys, described FreshCase as “one of the most exciting packaging innovations in wine that we have ever seen, offering real benefits to the consumer in keeping premium wines fresh for longer in a stylish and convenient new pack.”

Constellation is supporting this launch with a £500,000 marketing investment plan across consumer PR, print advertising, in-store POS displays and the brands’ websites.

Gabriel Savage, 19.10.09