Tesco expands Value range

28 August, 2009

Tesco has expanded its Value range of own-label wines amid a wide-ranging revamp in response to the recession.

Two new wines from Chile – a red and a white blend – will join the three-strong

Spanish range in 1-litre Tetra Paks, priced £3.99.

The three original wines will also be available in 25cl Tetra Paks priced 99p.

“We have found the Value wines extremely successful since they were introduced last September,” category manager for wine Andrew Carpenter told OLN. “The three Spanish 1-litre Tetra Paks have proved a big hit with customers, and turnover on an annual basis is now £10 million for those three lines alone. They

have proved to be appropriate for the environment at the moment.”

At £3.99 the Chilean wines are more expensive than their Spanish counterparts

at £3.15, but Carpenter said it was the lowest price Tesco could do for a New

World wine.

The extensions come as part of a range review in which Tesco has cut its wine

offering by 10% to between 800 and 900 lines. The supermarket has tailored the

range to different areas and has introduced a fixture which suggests wines for

different foods, called Great With.

Carpenter said: “We still have by far the biggest range any supermarket carries. We have tailored the range in a more scientific fashion to more and less affluent areas.”

Tesco’s fine wine range, introduced in 2007, will now be in 100 shops rather than some 300. “We took the view that in this current economic climate it is more appropriate to focus that into stores where it genuinely makes a difference to the customers. In most instances the Great With initiative is going in its place in that fixture,” Carpenter explained.

He added that the Great With fixture could be a weapon in the face of plans to

introduce designated alcohol zones in shops, which would prevent retailers from

cross-merchandising with food. “It was not specifically designed for that reason – we feel we can maximise customer interest in the fixture and break it up from just being a wall of wine – but certainly there is a secondary benefit,” he said.

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