Treasury Wine Estates (TWE) has announced the launch of a second wave of price-marked packs this month following a successful trial of initial range launched last year.
TWE says the first phase of PMPs performed exceptionally well, with figures highlighting an increased rate of sale over and above the standard packs. Feedback from wholesalers also revealed that the PMPs were attracting new customers into the wine category and driving distribution of the range as a result.
Shaun Heyes, Business Sector Controller – Impulse, EMEA at Treasury Wine Estates, commented: “It’s fantastic to have received such great feedback on our PMPs from customers, especially given it’s the first time we’ve launched them on any of our wine brands. As well as delivering great value for shoppers through attractive price points, our aim was to increase profits and rate of sale for our customers. Figures on the rate of sale are extremely positive but we’re keen to ensure that we’re also offering strong profit margins for customers, which is why we’ve taken the decision to revise the pricing of the range.”
Available from mid-June, the new PMP range will include the same top-selling impulse SKUs within the £6-8 price bracket, but with some at a slightly higher price point. These include Wolf Blass Yellow Label Chardonnay and Cabernet Sauvignon priced at £7.99, as well as Lindeman’s Bin 65 Chardonnay and Bin 50 Shiraz which will now be available at a £6.99 price point. The price of Wolf Blass Red Label Chardonnay Semillion and Shiraz Cabernet PMPs will remain at £6.49.
Heyes added: “With the £6-8 segment now growing by 4.9% year on year and holding a 24.5% share of the total wine category, the new price point will allow customers to continue delivering visible value to shoppers, while enabling them to take home more profit and unlock their share of the £200m category opportunity we identified last year.”
In 2014, TWE highlighted an opportunity for retailers to grow the Wine category by £200m in the Impulse channel by 2019. Their research implied that by offering a balanced range of wines, merchandising the fixture correctly, as well as having clear pricing and a chilled range of wine, retailers can take advantage of this huge opportunity and increase sales in their store.
Bottles from the new PMP range will highlight the prices clearly on the bottle neck, with the intention of providing great stand out for the range on shelf while also encouraging shoppers to trade up to more premium wines within the growing £6-8 price bracket.
