Goode: middle ground pricing is extinct

Countries which have achieved success in the UK off-trade are those with a two-pronged pricing approach, at £5.99 or £10+, according to leading wine writer Jamie Goode.

As part of a panel discussing the potential success of Romanian wine in the UK market, hosted by the drinks business, Goode said: “The middle ground doesn’t really exist anymore”.
 
“The countries who have had success have had a two pronged approach," he said. "They have come in at £5.99 in the supermarkets and then £10 or more in independents.

Another panel member, wine journalist Caroline Gilby MW, believed Romanian success can be found at the cheaper end of these brackets. She said: “You need to start at the £5 to £6 category with the big boys who do well with volume.”

However, talking on behalf of a retailer, Cat Lomax, assistant buyer at Direct Wines, argued that occupying the middle ground made sound business sense, especially when promoting a country’s regions.

“There is still a place for £7 to £8 wines because it’s a useful way of getting people to trade up,” she explained.

“It’s important not to neglect that category. Australia has got itself into a bit of a tangle now. They paid too much attention to branded offerings and are only now trying to communicate regionality and higher end wines,” she added.

One panel member commented that the independent sector is the best category for Romanian wines to succeed in the UK off-trade market.

This conclusion was drawn by Paul Evans of Rumpus Communications, who has been working with eight producers called the Romanian Winegrowers to help them break back into the competitive UK market.

“The independent sector is a crucial one for us,” Evans explained. “Those with loyal customers have a dialogue with them and can promote our wines."

However, even though Evans identified the independent sector was the best category to focus on, he suggested there were certain producers within the group who could provide the quality, price points and volume to satisfy the supermarkets.

“However, there are producers who have the potential to do volume,” he added.

At the debate, Goode concluded that while the quality of the Romanian wine he had tasted prior to the discussion was impressive, if Romanian wine was to succeed on the supermarket shelves it would need to stand out more and promote itself better.

For a full report on the Romanian round table see the August issue of the drinks business.

Rupert Millar, 28.06.2010