Constellation Europe is embarking on a major rationalisation of its Hardys wine range as part of a £12m investment in the brand - the biggest-ever for a wine brand in the UK, it claims.

The company has revealed plans to get rid of some of the 26 sub-brands, especially those at the lower end, to counter the increasing cost of raw materials and the difficult Australian vintage. It would also have to raise average bottle prices, said president Troy Christensen.

"We need to create more of a ladder with the range to help consumers navigate what's on offer and trade up through the levels," he said. "So we are currently looking at each of the sub-brands and making sure that each one has a reason for being there. Those that don't will come out and we'll also be introducing new ones if we see a gap between levels."

The company's £12m marketing campaign to boost the brand and bring new drinkers into the wine category would include a TV campaign, which breaks next weekend, sponsorship deals, events and in-store activities, said Christensen.

"As the UK's number one wine brand we needed to do more to grow the brand and the category than just going to retailers with a price promotion," he said.

The One Love Since 1853 TV campaign focuses on the story of the brand's founder Thomas Hardy and his passion for wine.

The company has also signed a year-long sponsorship deal with Sky Box Office and is running a 15-week promotion with The Times featuring Movies that Matter. It will also be launching a tie up with online DVD hire company Lovefilm next month.

Christensen denied consumers were falling out of love with the Australian wine category but admitted producers and brand owners faced tough times in the UK.

"People are still interested in the Australian category because they know the quality and consistency is there," he said. "However, we all need to keep innovating and keep listening to consumers to maintain interest."

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