Wednesday, July 28, 2004

Premium growth for New World wine makers - Commentary

http://www.beveragedaily.com/news/news-NG.asp?id=53817 
This article states "The problem for New World producers is that while they have been far more successful at growing sales of their wines than their European counterparts in recent years, this has been primarily achieved by targeting the 'man in the street' with simple, unpretentious wines, branding, dynamic marketing and a flavour profile to appeal to the broadest range of palates."

The paragraph starts with "The problem. . . " but then fails to mention what the problem is - is it selling more wine?  making wines that are consumed by the unwashed masses?  successful branding?  Where exactly is the problem?  Unless there's a snide swipe being taken at making wines for the 'man in the street', I fail to see what has been 'the problem' with the recent sucesses of New World Wines (notably Austalia, South Africa, and Chile as they relate to the UK market).  The article goes on to show that in a single Canadian market, super/ultra premium wine sales are up and that Gallo is also looking to enter more upscale price points. . . . and the point is. . . . ? 

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