Concha y Toro targets a million extra households
Concha y Toro has laid out ambitious plans to increase the number of households buying its three key brands by 1 million within three years.
Casillero del Diablo, Trivento and Cono Sur continue to deliver impressive year-on-year growth, and they are now present in 3.3 million UK households.
The plan is to increase that to 4.3 million by exciting younger adults, fighting back against thriving categories such as gin and helping shoppers trade up with confidence.
UK general manager Simon Doyle said: “We want to increase our penetration from 12% to 16%. It’s quite ambitious, but we are very clear that we can do it, and very clear about how we can do it. We have set out three key growth initiatives.
“The first is offering wines for every occasion and making our category much more relevant to consumers. The second is to address the need for more excitement. The third is to make wine a more engaging choice.
“It’s easy to say, but you can only do it if you really understand what those three things mean to consumers, and our team has embarked on our biggest consumer study [read more about this on page 22]. The key is that we keep our eye on the consumer.
“It is important that we continue to invest in our brands, add brand value and give consumers a reason to trade up.
“There has never been a more important time to know what you stand for in this significant period of change. If you really want to have quality, aspirational brands and you really want to enrich occasions, at the same time enhancing category value, then you need to have strategies and plans to deliver that, and you need to be prepared to invest in the long term and find formulas that work.”
Doyle believes the wine industry needs to change its model to include higher margins if it is to thrive in the years ahead.
“We have to try to wean consumers and retailers off this culture of heavy discounting,” he said. “The wine industry has sponsored it, to be honest. We have not exactly withdrawn ourselves from it proactively, but we need to, because there is less and less margin in this business for us all to play with.
“Consumers need to make sure that, when they buy a bottle of wine, they are getting great value, and low prices do not always mean great value.
“We have consumer challenges. There is a general trend of consumer migration out of wine into other categories, particularly among younger consumers, into gin, Prosecco and others. We have an ageing wine consumer profile. We need to figure out how to get younger consumers into the category.
“In all of these challenges we see some big opportunities. We have a real opportunity to help shape the future and recruit new consumers into wine through our existing brands.”