Wine brands need to be local, warns Chile producer

Wine brands need to act locally rather than globally in order to win new markets, a leading Chilean producer has said.

VSPT Pedro Herane said Chile needed to move away from entry level wines and act locally, not globally

Speaking exclusively to the drinks business Pedro Herane, CEO of the VSPT Group, Chile’s second largest wine producer, said wine brands need to concentrate on developing specific brands for identified markets rather than adopting a ‘one size fits all’ approach.

“In order to win, we have to develop local propositions that will work in some markets very strongly, but maybe won’t in others,” he told the drinks business.

There has, he says, been a dramatic shift in the last six years in many markets, not least the UK. “The wine, along with everything else, is changing so fast, as well as the retailer and the consumers – so companies should try to understand the trends and try to make the changes in order to keep playing the game,” he said.

As a result, insight into consumers had become increasingly important, along with a more consumer-focused approach.

The company has been looking at developing styles tailored specifically to millenials for the US market – which was subsequently launched in the US, Chile and South Korea – which drew heavily on consumer understanding to look at what consumers wanted style-wise. “We’re learning not only about the products [they want] but also how to communicate better with the consumers as they are not using the traditional media or the traditional wine language – it is totally different and more about lifestyle so it is about trying to find the right way to connect with them.” Herane said. “It’s not just saying ‘it’s about social media’ but how to drive social media and approach them in the right way.”

UK market

He warned that with the Chilean market in the UK broadly flat, it was important that Chilean producers move away from entry level wines, and create products that more sophisticated consumers want to drink.

“Chile as a country is moving as a country to different valleys and we as an industry are trying to add more value to our wines for the brand. For many years, it was seen as good value, but have much more to offer now, from the cold climate coast from Leyda Valley, to new wines form the north from Elke? And Limari?, and in the South of the country too,” he said.

“If we [Chile] wants to keep playing in the entry level business, I don’t see any opportunity there to be honest. There are more opportunity to bring in products with more premium, with different styles and with more value,” he said.

“And it is a challenge, not only the UK, but also for the domestic market, as people are becoming more sophisticated and pushing the company for new things. We are as a company need to understand and try to bring more sophisticated and new things to them,” he said.

VSPT’s Altaïr winery, San Pedro Wines, Chile