Molson Coors to expand wine portfolio

Drinks supplier Molson Coors has been expanding its wine portfolio as it looks to position itself as the on-trade’s “one stop shop” of choice.

The beer giant is investing heavily in its on-trade focused wine offering having brokered new partnerships with Bibendum, AdVini and Enotria.

Robert Hilton, wine category controller at Molson Coors, announced that the move represented a “step change in performance” for the group adding: “We decided we wanted to go direct to the source for our wines.”

The company has included wine in its portfolio for nearly 30 years but has tended to work with the likes of Gallo, Constellation and Concha Y Toro and their branded offerings rather than anything made on a smaller scale.

While the contracts with the bigger groups remain in place, Molson Coors hopes that the new partnerships, as well as its established reputation in the industry will help the company gain credibility in wine circles and increase confidence in the range and quality of the new products.

Over the past couple of years Molson Coors has expanded its wine range from 250 to around 750 lines from 15 countries, with increased attention being paid to high-end products and their origin as well as entry level offerings.

In addition to sourcing nearly 170 wines with Bibendum, the group also stands to benefit from previous contacts with Jeanjean, a relationship that has apparently survived the company’s merger with Laroche earlier this year,  to create AdVini,

Furthermore, the addition of wine to what is, primarily, a beer company has meant a complete overhaul of staff and training, as Hilton explained: “We not only changed our range but brought on wine managers to train our sales force and customers.”

Molson Coors has also recruited Gary Keller, former national account manager at Enotria, as senior wine buyer.

Hilton said: “Being heavy in expertise is how we’re trying to build credibility. We are aware that we’ve under-indexed in wine before but we will keep on expanding in line with our customers’ needs.

“Our target for the next few years is to double our wines’ market share.”

Sales director, Steve Ellis, said that, in the face of the recession, the decision was taken to invest and expand rather than consolidate.

“We launched a review into how people in the on-trade buy their drinks and asked them what they wanted,” he said.

“The result is a fantastic range of wines that we believe can add value to the consumer offer in today’s challenging market place, ultimately driving incremental profit for our customer’s businesses.

“Some venues are doing very well and others are struggling. The market is still tough and we’re trying to do our bit to support them by providing them with the best possible service.

He added: “What our clients want is a drinks supplier who can provide everything,”

“Customers don’t want you cutting back and because we haven’t, we’re gaining ground from others who have.”

Ellis also stressed one way of achieving success was through Molson Coors’ extensive distribution network, which enables it to operate all over the country.

“We have a strength in our distribution,” he said. “Others don’t have the same scale. We can combine the power of our infrastructure with the depth of our range.

“Our aim is to be the best drinks supplier in the industry.”

Rupert Millar, 02.06.2010