Constellation launches big brand Chilean wine

Constellation Europe is launching Gran Tierra, a Chilean wine with ‘big brand’ consumer appeal, which it says is set to drive value and growth in UK off-trade Chilean wine sales.

The £414m (Nielsen MAT to 08.08.09) Chilean wine category is growing at 22% (Nielsen MAT to 08.08.09), with consumers being increasingly aware of it as a country that produces good quality wine at keen price points.

Independent research commissioned by Constellation amongst 1,000 UK consumers () shows that 95% of wine drinkers like Chilean wine, however nearly half (47%) would like to see more Chilean brands on the market and three quarters (76%) would buy more Chilean wine if it were more available. Importantly, when asked to name a Chilean wine brand, only 7% of people could do so unprompted, showing a clear gap in the market for a memorable brand.

Gran Tierra is being introduced to fill this gap by providing a mainstream Chilean wine with a name that’s easy to recall, packaging that stands out on shelf and is recognisable again and again, and a competitive price point to drive repeat purchases.

The Gran Tierra range will consist of three clear tiers of wines at different price points, to provide plenty of consumer choice.  

Constellation identified the beauty of Chile and its natural wine making environment as hugely appealing to wine consumers.   This positioning is central to Gran Tierra. The brand name translates into the ‘Great Land’ and the memorable packaging focuses on the key natural icons of Chile – the Andes and the Condor. In tests, 78% of consumers found this theme and the Gran Tierra brand ‘very attractive’. ()

Constellation is investing £0.5m in a launch programme, which will include a motivating neck collar promotion to increase awareness and trial at point of purchase, offering 10 holidays to enjoy the natural beauty of Chile and 500 cases of Gran Tierra.

David Cunningham, vice president business development for Constellation Europe, says: “While Chile is performing very well, there is room for further growth. We see a huge retailer profit opportunity in the launch of Gran Tierra, particularly for convenience stores where every day, mainstream wine brands at competitive price points tend to thrive. Consumers are at the heart of everything we do and, as our research reveals, there is demand for Chilean wines to be more available and easier to find. A ‘big brand’ wine such as Gran Tierra will meet this need. Constellation Europe is behind some of the most successful branded wine launches in the UK, such as Echo Falls, Kumala and Hardys, and we believe we have the right credentials to bring a strong and memorable brand to the Chilean market, which will drive sales and profitability for our retail partners.”

In an endorsement of Gran Tierra, Michael Cox, UK Director of Wines of Chile, says: “The Chilean wine sector in the UK is very vibrant and continues to offer great potential and value for money.  With more well supported brands such as Gran Tierra entering the market, the consumer will increasingly benefit from making Chile their natural choice.”

The range

Gran Tierra will launch with a full range at a variety of price points:

Two entry point wines – a ‘Smooth Red’ and a ‘Crisp White’ at an RRP of £3.99.

Three single varietal wines – a Merlot, a Sauvignon Blanc and a Cabernet Sauvignon Rosé at a RRP of £5.99.

Two premium dual blends –a Cabernet Sauvignon Carmenere and a Chardonnay Viognier at a RRP of £7.99.

More about Chile

Chilean wine has shown sustained growth in the UK over the last 5 years.  Value growth is up 22% to £414m (the total off trade wine market value is £5,038m + 6.5%). Chile share of total off trade market value is 8.2% Nielsen MAT 08.08.09

Chilean wine volume grew by 16.8% to 8.36 m 9 lt cases (the total off trade market volume is 98.16m 9lt cases +2.5%). Chile share of total off trade volume is 8.5% Nielsen MAT to 08.08.09

Chilean wine sales value in Independents is £102.2 m. Chilean wine sales value in the Convenience sector is worth £57.3m, showing growth +54% MAT vs last year. Chilean wines sales value in Independent sector is worth £44.9m, showing growth +21% MAT vs last year Nielsen MAT to 08.08.09  

Chilean wines spend less money and have fewer ‘power brands’ to drive consumer awareness and affinity versus other country categories such as Australia and South Africa

Taste is the primary reason for consumers to choose Chilean wine, followed by price.  ‘The brand’ is currently the lowest scoring reason for consumers to choose Chilean wine, showing a clear opportunity for a brand to come to the fore Nielsen MAT to 08.08.09

1 September 2009 - Felicity Murray