Tesco strengthens own label wine range

Tesco has boosted its own label range with the introduction of more than 20 new lines under its core and premium finest* wine range – which it says has seen “significant” growth over the summer.

Tesco hosted a pop-up bar in Soho for its finest* brand last month (photo: Tesco)

The team has rolled out 39 new wines in total – twenty-two of which are own-label – with a further twelve available exclusively online. The move follows the revamp of 118 wines in its own label range in June, which saw it ditch the “confusing” ‘Vineyards World Wines’ and ‘Simply’ sub-brands, and move six wines previously available under the finest* range to the standard own label.

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Tesco BWS team said the its wines has grown 2.9% since the revamp and it had seen a “significant increase” in the number of new customers and returning customers”.

However the move appears contrary to supplier research believed to be presented to the retailer over the summer which suggested Tesco had stripped out too many wines at the premium end during its range review last year, alienating a core section of its 40-something, middle-class customer-base.

Db has learnt the retailer had called in suppliers to investigate boosting its £8-20 range bracket to plug the potential gap – but of the new additions to its store-range, only four (including a new finest* English sparkling from producer Hush Heath) retail above £10. Ten will retail on or below £5.50 with a further seven at the £6 – £6.99 ‘sweet spot’ and six retail between £7 – £8.99.  A further twelve new wines are available exclusively online, priced from £54 and £120 per case (equivalent to £9-£20 per bottle).

Product development manager Graham Nash said the team’s simplification of the own label range had made it easier for consumers due to clear labeling and pricing. “Evolution is very much to get the own label tiering – [the range] is always evolving to cater for customers’ needs. As lot work done in the last year was in establishing a core range. The first phase was in June, and a lot is coming to fruition now,” he told db.

The new core own label range includes an “amazing” Tempranillo that Nash said offered “incredible value” (RRP: £3.50), as well as an Tesco Australian Shiraz 2016 from supplier Accolade (RRP: £3.95), and an Old Vines Garnacha 2015 (RRP: £5.00). New additions to the finest* range include finest* Limestone Coast Chardonnay 2015 (RRP: £6.00) from LCW, finest* Cahors Malbec 2015 (RRP: £8) and finest* Hautes Côtes de Nuit, 2012. It has also added a Chardonnay and Pinotage from Bellingham Homestead (RRP: £10) and Offspring red and white blends (£7.00).

Twelve wines were also added to its online wine site. Tesco Wine by The Case buyer Nick Juby said the online operation gave great opportunity to vary the offering on a parcel-based approach and add favourites in terms of style, adding that key countries boosted online recently included France, New Zealand and Spain, which Juby said “complemented” the in-store range.

Highlights include a ‘fun-looking’ Muscadet, which Juby said was enjoying a renaissance, Muscadet Sevre et Maine Sur Lie La Marinère 2015 (RRP: £54/case) from a new cooperative of winegrowers, Vignerons du Pallet, a Beaujolais Villages Baron de la Vauxonne 2015 (£72/case), Chateau Chatain Lalande de Pomerol 2012 (RRP: £90/case) and two one-off parcels from Château Camplazens, a Syrah 2014 and Château Camplazens Maximus 2013 (RRP: £60/case), which Juby said were “a bit different” and ideal for online retailing as they could be better explained to consumers.

Last October saw the retailer slash its lines from around 900 to 660 following an extensive category review, with the new range hitting shelves in October 2015, accompanied by a new, simpler pricing model.

Last month Tesco launched a pop-up store for its premium own label range, Tesco *finest in the centre of Soho, with the aim of presenting its wines to consumers out of the context of the wine aisle.