WINE SUPPLIERS WORK TO RESTORE PRICES IN U.K.
Wine companies like Constellation, E&J Gallo and Diageo are taking extra lengths in the U.K. to help turnaround sagging wine prices. U.K. consumers have gotten used to abnormally inexpensive wines thanks to international grape gluts, particularly in Australia, but suppliers hope to reverse the harmful trends by educating consumers.
Richard Sands, chief of Constellation, told the Financial Times: “The U.K. consumer hasn’t evolved to the degree that the U.S. consumer has in terms of having an interest, a taste for, finer wines.”
Apparently, Americans are more readily receptive to expensive brands, be it wine or clothing, than their British counterparts. And while marketers have tried to develop more wine brands in the U.K., they’ve had much less success with critter brands – which do quite well in the U.S.
One way to increase promotions is to convince U.K. consumers that a particular brand is of high quality, and therefore worth the extra bucks (or pounds). Meanwhile, Diageo is making efforts to educate consumers about wine regions, while Constellation is investigating the development of low-alcohol wines and considering narrowing its range.
A lot of criticism has surrounded U.K. supermarket chains who are blamed with taking advantage of wine surpluses and driving down prices much to the dismay of the suppliers. Supermarkets, however, argue that wine producers have done little in terms of research and development, and that providing innovative products are much more important that price promotions.
Richard Sands, chief of Constellation, told the Financial Times: “The U.K. consumer hasn’t evolved to the degree that the U.S. consumer has in terms of having an interest, a taste for, finer wines.”
Apparently, Americans are more readily receptive to expensive brands, be it wine or clothing, than their British counterparts. And while marketers have tried to develop more wine brands in the U.K., they’ve had much less success with critter brands – which do quite well in the U.S.
One way to increase promotions is to convince U.K. consumers that a particular brand is of high quality, and therefore worth the extra bucks (or pounds). Meanwhile, Diageo is making efforts to educate consumers about wine regions, while Constellation is investigating the development of low-alcohol wines and considering narrowing its range.
A lot of criticism has surrounded U.K. supermarket chains who are blamed with taking advantage of wine surpluses and driving down prices much to the dismay of the suppliers. Supermarkets, however, argue that wine producers have done little in terms of research and development, and that providing innovative products are much more important that price promotions.
posted at 3:04 PM
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