Australian wine giant Vinarchy is to cull a slew of brands from its portfolio to focus on those capable of driving “long-term category growth”, its CEO has said.
“We are…rationalising our low volume, non-core labels that no longer resonate with consumers or align with our growth plans,” Vinarchy boss Danny Celoni told The Grocer.
The majority of labels at risk were “no longer trading or in single markets or channels in very small volumes,” Celoni said. Decisions would be taken on “a case-by-case basis over the coming months”, he added.
Celoni, who took charge at Vinarchy in May, declined to say exactly how many brands the group could look to retire or sell. Reports in local media in Australia suggested up to 60 brands – around 40% of its portfolio – could be on the chopping block.
Vinarchy would redirect investment towards its three largest global brands – Australian labels Hardys and Jacob’s Creek, and Spain’s Campo Viejo, The Australian Financial Review reported.
“By reshaping the portfolio and stepping up innovation, we can put our effort where it counts and drive long-term category growth across our markets,” Celoni said.
Vinarchy, formed after the merger of Accolade Wines and Pernod Ricard’s Strategic International Wines unit earlier this year, is also planning to shift focus to lower-abv wines and smaller pack formats to appeal to customers drinking less.
“We’re ramping up innovation by creating products, formats and experiences that consumers want,” said Celoni. “We want to tap into trends around lighter drinking and relaxed occasions to make wine more relevant.”
No comments yet