The Changing Face of Retail
Tesco says it will continue its store expansion on July 2 after taking a three month hiatus, which prompted speculation that its Fresh & Easy stores in the U.S. were failing. According to Dow Jones newswires, a Tesco spokeswoman dismissed those fears and said the business was “thriving.” She also reiterated Tesco’s prior commitment to opening 200 U.S. stores by February 2009. Tesco has not yet released any sales figures for Fresh & Easy, but did reveal higher than expected sales densities per square foot in April.
WAL-MART AND SAFEWAY COMPETE. Tesco must be viewed as something of a threat (despite reports of failure) because Wal-Mart and Safeway are coming out with new, competitive grocery store formats. Wal-Mart has created Marketside, which will be built around a premium rather than low-cost offering. Fresh & Easy tends to focus more on price. Marketside will be 15,000 square feet and offer meal solutions prepared and served on the premises.
Safeway also launched its “Market by Vons” in Long Beach, CA last month to compete with Fresh & Easy.
TIM MASON SPEAKS. Tim Mason, chief executive of Tesco’s US operations addressed the company’s negative press earlier this year in an interview with the Financial Times. Here is a snippet of what he said:
“I think there are plenty of people who don’t have any great desire to see us successful and, you know, they will say stuff that is not, but you have to put up with it and get on with it.”
On Marketside and The Market by Von’s:
“You always have to assume that competitors will respond...I have been to the Safeway, it is a very pretty store."
But “it [Market by Von’s] is very expensive and it has got an awful lot of service counters in it, a meats counter, a bakery counter, a fish counter which take an awful lot of service in a small store so it is doing a slightly different thing... we are hoping that our business has a broader appeal.”
WAL-MART’S OAK LEAF THE NEW TWO BUCK CHUCK?
In a world where cheap wines generally hail from other countries, Wal-Mart’s private label Oak Leaf wine is joining the ranks of Two Buck Chuck, selling for less than $3 a bottle but to a much bigger consumer base than Trader Joe’s. Oak Leaf took gold and bronze at this year’s wine competition at the Florida State fair and even appeared in Oprah’s “O” magazine. Wal-Mart partners with The Wine Group to produce Oak Leaf. Oak Leaf is almost sure to see a spike in sales as the sour economy encourages consumers to save money, trade-down, and – as you’d have it – shop at Wal-Mart.
NEW ZEALAND SEES LARGEST VINTAGE
New Zealand has just recorded its biggest ever vintage, with yields up almost 40% from last season, according to the New Zealand Wine Growers. Data shoes that 285,000 tons of grapes were harvested in 2008, due mainly to a combination of an increased producing area and favorable growing conditions.
New Zealand is reportedly seeing strong demand in Australia, the UK and the U.S., among other markets. Could New Zealand wines replace Australia as the next big import?
WSJ ON CONSUMERS TRADING DOWN
Consumers’ annual income could determine the amount of money they spend on a bottle wine, reports the Wall Street Journal. Which category do you fall in?
Mid-tier consumers who fall in the $50,000 to $100,000 income range is "selectively deselecting" in what Thom Blischok, president of IRI Innovating and Consulting, called a "substitution strategy." They're choosing to trade-down and buy cheaper wines.
People who earn $100,000 and above are “deprioritizing.” They are “asking themselves, 'Do I really need a $100 bottle of wine? Wouldn't a $40 bottle do,'" said Blischok.
GINA GALLO EMPHASIZES FAMILY
The Press Democrat’s Virginie Boone conducted an interesting interview with third-generation winemaker Gina Gallo, Julio’s granddaughter. Here’s an excerpt:
“The philosophy for our family is, sure, we have our family wines that we produce and create, but we know there’s a thirst out there to try other wines. We have to be sustainable and our way is not just buying, buying, buying but partnerships with families. They’re all family relationships.”
WSD BRIEFS:
ABSINTHE MATA HARI has signed 21 distributors (including Georgia Crown and Opici) in the U.S. after receiving TTB approval six weeks ago, the company said. It will hit shelves in the beginning of July in the central U.S. with markets from Texas, Louisiana, and Missouri up through Indiana. Mata Hari is imported from Austria.
DIAGEO NAMES NEW TRAVEL RETAIL LEADER. Diageo has announced that Phil Humphreys will take over as managing director of the company's Global Travel and Middle East (GTME) division from July 7. Former Diageo GTME managing director Ron Anderson will become the company's first chief customer officer from July 1.
P.I.N.K. VODKA IS NOW AVAILABLE IN AUSTRALIA as the first 80-proof ultra-premium vodka infused with caffeine and guarana.
Until tomorrow, Megan
“Slow down and enjoy life. It's not only the scenery you miss by going too fast - you also miss the sense of where you are going and why.”
Eddie Cantor
--------- Sell Day Calendar ----------
Today's Sell Day: 12
Sell days this month: 21
Sell days this month last year: 21
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
WAL-MART AND SAFEWAY COMPETE. Tesco must be viewed as something of a threat (despite reports of failure) because Wal-Mart and Safeway are coming out with new, competitive grocery store formats. Wal-Mart has created Marketside, which will be built around a premium rather than low-cost offering. Fresh & Easy tends to focus more on price. Marketside will be 15,000 square feet and offer meal solutions prepared and served on the premises.
Safeway also launched its “Market by Vons” in Long Beach, CA last month to compete with Fresh & Easy.
TIM MASON SPEAKS. Tim Mason, chief executive of Tesco’s US operations addressed the company’s negative press earlier this year in an interview with the Financial Times. Here is a snippet of what he said:
“I think there are plenty of people who don’t have any great desire to see us successful and, you know, they will say stuff that is not, but you have to put up with it and get on with it.”
On Marketside and The Market by Von’s:
“You always have to assume that competitors will respond...I have been to the Safeway, it is a very pretty store."
But “it [Market by Von’s] is very expensive and it has got an awful lot of service counters in it, a meats counter, a bakery counter, a fish counter which take an awful lot of service in a small store so it is doing a slightly different thing... we are hoping that our business has a broader appeal.”
WAL-MART’S OAK LEAF THE NEW TWO BUCK CHUCK?
In a world where cheap wines generally hail from other countries, Wal-Mart’s private label Oak Leaf wine is joining the ranks of Two Buck Chuck, selling for less than $3 a bottle but to a much bigger consumer base than Trader Joe’s. Oak Leaf took gold and bronze at this year’s wine competition at the Florida State fair and even appeared in Oprah’s “O” magazine. Wal-Mart partners with The Wine Group to produce Oak Leaf. Oak Leaf is almost sure to see a spike in sales as the sour economy encourages consumers to save money, trade-down, and – as you’d have it – shop at Wal-Mart.
NEW ZEALAND SEES LARGEST VINTAGE
New Zealand has just recorded its biggest ever vintage, with yields up almost 40% from last season, according to the New Zealand Wine Growers. Data shoes that 285,000 tons of grapes were harvested in 2008, due mainly to a combination of an increased producing area and favorable growing conditions.
New Zealand is reportedly seeing strong demand in Australia, the UK and the U.S., among other markets. Could New Zealand wines replace Australia as the next big import?
WSJ ON CONSUMERS TRADING DOWN
Consumers’ annual income could determine the amount of money they spend on a bottle wine, reports the Wall Street Journal. Which category do you fall in?
Mid-tier consumers who fall in the $50,000 to $100,000 income range is "selectively deselecting" in what Thom Blischok, president of IRI Innovating and Consulting, called a "substitution strategy." They're choosing to trade-down and buy cheaper wines.
People who earn $100,000 and above are “deprioritizing.” They are “asking themselves, 'Do I really need a $100 bottle of wine? Wouldn't a $40 bottle do,'" said Blischok.
GINA GALLO EMPHASIZES FAMILY
The Press Democrat’s Virginie Boone conducted an interesting interview with third-generation winemaker Gina Gallo, Julio’s granddaughter. Here’s an excerpt:
“The philosophy for our family is, sure, we have our family wines that we produce and create, but we know there’s a thirst out there to try other wines. We have to be sustainable and our way is not just buying, buying, buying but partnerships with families. They’re all family relationships.”
WSD BRIEFS:
ABSINTHE MATA HARI has signed 21 distributors (including Georgia Crown and Opici) in the U.S. after receiving TTB approval six weeks ago, the company said. It will hit shelves in the beginning of July in the central U.S. with markets from Texas, Louisiana, and Missouri up through Indiana. Mata Hari is imported from Austria.
DIAGEO NAMES NEW TRAVEL RETAIL LEADER. Diageo has announced that Phil Humphreys will take over as managing director of the company's Global Travel and Middle East (GTME) division from July 7. Former Diageo GTME managing director Ron Anderson will become the company's first chief customer officer from July 1.
P.I.N.K. VODKA IS NOW AVAILABLE IN AUSTRALIA as the first 80-proof ultra-premium vodka infused with caffeine and guarana.
Until tomorrow, Megan
“Slow down and enjoy life. It's not only the scenery you miss by going too fast - you also miss the sense of where you are going and why.”
Eddie Cantor
--------- Sell Day Calendar ----------
Today's Sell Day: 12
Sell days this month: 21
Sell days this month last year: 21
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 2:41 PM
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