This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Fosters pulls Wine Australia funding
Foster’s is withdrawing financial support for Wine Australia in the UK, saying it is unhappy with the organisation’s approach to promoting its portfolio of Australian wines to European drinkers.
Foster’s executives are said to be particularly unimpressed with the new "A+" campaign which launched last year. For wines to fit into the A+ category they must be bottled in Australia, come from one of the 62 regional Geographical Indications and be a genuine brand rather than an own-label.
Foster’s Treasury Wine Estates wine division, which owns the Penfolds, Wolf Blass and Rosemount brands, claims it is taking this action as it is aggrieved that despite being one of the main contributors to Wine Australia’s marketing activities in the UK, the "A+" initiative excluded many of its most popular labels.
With its focus on genuine Australian brands, rather than an importer’s own label or Australian bulk wine sold with a generic label, the “A+” campaign excludes the bulk wines sold to retailers which provide a big source of revenue for Foster’s.
"It is disappointing that we’ve got to this point and it comes after some time trying to work through issues with the Wine Australia UK team,” a Foster’s spokesman said.
”We’ve seen declining value over recent years and campaigns which do not promote and represent our total portfolio of Australian brands, for what is a considerable annual investment.”
Wine Australia confirmed that Treasury Wine Estates will still participate in the organisation’s campaigns in Asia and North America and would continue to support the group in other activities.
Alan Lodge, 02.02.2011
Little surprise that Fosters are fed up, but the biggest mystery is why anyone supports Wine Australia and their half-hearted campaigns at all. I never cease to be disappointed…
Matt
[url]http://www.BoozeMonkey.com[/url]
The poison chalice postion that has been heading up Wine Australia UK in recent years, shown with clarity at how quickly people run from a job that obviously is beset with problems and divisons within the Australian wine industry, well yes I am not surprised that Fosters have slumped off with their toys. I think the WA strategy has a lot of merit and certainly could have a good footprint in the newer markets. But shouldnt the brands be the stepping stone up to discovering the rest of what Australia can offer? At the moment Australia is stalled and needs a new boot to kick start attention again. Lets wait and see what Yvonne can do.
Wine Australia are playing the story down, but this will be a huge blow for the organisation: last year they lost the Australian Vintage account (formerly McGuigan Simeon).
And their staff have been jumping ship too: in September last year they lost Lisa McGovern (who resigned after just 18 months as head of Wine Australia’s operations in the UK, Ireland & Europe), and the following month they also lost Paul Henry (who resigned after 7 years in his post as General Manager for Market Development) “to explore broader opportunities and personal development outside the organisation”.
According to a Decanter report yesterday, Yvonne May, (Lisa McGovern’s newly-appointed replacement in the UK, Ireland & Europe) said she is “not especially concerned about the funding lost through Treasury’s withdrawal” but said that she is “bothered by the lack of unity”.
“I’m very keen that we are one united force behind the promotional body for Australian wine in the UK, and it is something that Australian wine has always done so well,” she claimed.
Lady, your finger couldn’t be further from the pulse…