Tesco defends dealing directly with producers

Tesco has stood by its decision to increasingly work directly with producers, insisting it’s about more than just saving on costs.

“We have dealt directly with a lot more producers recently but it’s not just to cut agents’ margins,” said Pierpaolo Petrassi MW, senior product development manager at the supermarket’s Autumn Tasting in London last week.

“We want producers to ‘get’ what we do,” added Petrassi, using Italian cooperative Cantina di Soave as a “classic” example. “It’s a professional outfit and the key here is to invest lots of time in the relationship.

"Like every successful relationship it’s about getting to know each other better so that each can play to the strengths and manage the limitations of the other for the greater good of the overall business relationship,” he added.
 
Petrassi, who has brought a particular expertise of Italian wine to the supermarket since his arrival in 2007, noted that four out of every 10 Italian bottles sold in the UK off-trade are now sold in Tesco. The country’s popularity is “not just about Pinot Grigio. Gavi, Fiano, Frascati and the Italian white Merlot have been great success stories too,” he said.

While he hinted there may be significant developments surrounding its wine marketing in the near future, Petrassi commented that the “sky is the limit” for wine marketing opportunities at Tesco, even if, “One of our biggest challenges is that we’re the broadest church out there. We’re pulling people out of places like Aldi but we’re also targeting customers from Majestic and Thresher too, that’s to say we cater for people who want to spend £3 or £10.”

Jane Parkinson, 26.10.2009