A group of 25 UK retailers and importers has joined forces in an urgent bid to persuade France to change the way it promotes its wines in the UK.
The campaign, which has been called Plan B, hopes to encourage the French to take on a unified approach when it comes to marketing their wines.
The group, which consists of high profile campaigners such as Tesco, Morrisons, PLB and Bibendum, voiced its concerns in a letter to agriculture & fisheries minister Michel Barnier.
'We are united in the belief that France needs to change the way it promotes its wine in the UK if it is to ever regain – or even stabilise – its market share,' the letter said.
The underlying issue behind the campaign is the idea that the individual regions need to work together to fund a generic, nation-wide campaign.
Tesco's Graham Nash highlighted the example of South Africa, where producers put national benefit ahead of personal gain.
'In France there are disputes within regions as well as between them,' he told Off Licence News.
'There could be much better progress achieved from the regions working together, perhaps enabling France to stabilise and even grow its market share,' he added.
Due to a change in European law, a country-wide advertising campaign would need to be funded by the 21 regional bodies as well France Agrimer and the Ministry of Agriculture & Fisheries.
However, according to the letter sent to Barnier, the regional bodies refuse to cooperate.
'The regions must know that, while on the French market they are rivals, in the UK their strength lies in them being seen as part of a greater France,' it said.
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As Ms. Ramsdale rightfully pointed out in her article, it seems that France is in the urgent need of more coherent and relevant marketing techniques when it comes to commercializing its wines on foreign markets.
That particular lack in communication was one the reasons that lead to the creation of SOWINE in 2006. As a consulting agency specialized in marketing wines and spirits, we like to stress the importance of building a strong image for our clients, beneficial for them, but also for their appellation, region and country on the world scene.
Having travelled the world studying effective ways to market wines and spirits, we feel that the French still have a long way to come if they want to be competitive and decipherable on international markets, especially when actors like South Africa or Napa Valley vintners are so proactive. There is a huge benefit for the actors that understand this and implement strategies that help position them clearly for buyers and customers worldwide. Just have a look for instance at what the Cahors appellation has accomplished using Malbec as a strong asset in its communication.
We therefore praise the initiative of the 25 UK retailers and importers who launched plan B, hoping that it will help French producers to understand that the days when you didnt have to worry about communicating about your wine and finding consistent ways to market it are long gone.
Philippe-Alexandre Bernatchez, Paris
I am in agreement with the Supermarket leaders in their letter to the Minister of Agriculture in France.
In addition I would like to add that the same issue arises with the marketing of wine within France - the subject of talk I gave at Vinexpo and covered (or at least some of my doorstep comments were covered) by Decanter.
The Fundamental issue for France is that it does not have a common marketing banner such as Wine of Spain, Italy, South Africa, Chile, a situation highlighted at the Exhibition Hall at VineExpo.
Research shows that Country of Origin is still the prime driver for wine promotion and that collaboration is and will be the mainstay of success in the marketing of wine in what is a very fragmented market. ( many producers seeking listings and placement amongst many selling point opportunities).
As 60% of all wines are now sold in Supermarkets and I can understand the frustration of the authors of the letter.
Intra- Regional collaboration will be fundamental to national success.
Similarly there must be a spirit of inclusion of all the designated quality levels of the French Industry be they denominational or non - denominational.
In my experience this is where the real problem with the marketing of French wine begins.
Individual Chateaux are too small and logistically inefficient to work with supermarket chains and as a result Bureaux inter-professional should develop a marketing function beyond promotion in collaboration with the negocinat system. ( although supermarkets generally prefer to work directly with the producers, acting as their own negocinat).
The French Regional brand structures are too complex for the consumer to understand.
Wine has become a Fast Moving Consumer Good and the consumer makes their self selection purchase decision at the shelf.
The structure of French (and other producers as well) is too complex.
Globally there are over 500,000 branded wines.
Regional branding is complex in itself for the established regions, so the continuing move to add to the AOC category in an already overcrowded category and where the new AOC regions provide little perceived benefit or relevance to the consumer,other than another AOC brand(s) with little or no intrinsic or extrinsic distinctiveness and with little brand salience at the POS.
I believe that merging of AOC would be a far more purposeful strategy.
Supermarkets offer a great opportunity for Chateaux as they offer national/ multinational distribution opportunities, a benefit not lost on either the South Africans and New Zealanders who have developed brands specifically for supermarket distribution.
This may well necessitate the inclusion of the cooperatives in the supply chain mix to provide the critical mass of product needed to provide a continuity of supply at the weekday/ lifestyle sector of the market demanded by the supermarkets in order to maintain listings and shelf space.
This model is already being pursued in Spain and Italy for product into the commercial/lifestyle end of the market with some success.
Some of these cooperatives also act as house brand /contract packers for the various supermarkets in the UK and elsewhere.
Most wine is sold at the commercial level and that is illustrated belatedly by the growth of BIB in France.
I believe that France has neglected this segment - which the New World gladly grabbed and grew - realising that " quality starts at the bottom " - as that is where most consumers purchase wine most often and where the higher levels of repurchase loyalty are to be found.
So finally - France needs to take a holistic marketing approach to its brand structure and marketing to include both the denominational and non- denominational wine categories if it is to regain its previous position as market leader.
France is loosing its benchmark status for many varieties but a Wine of France structure still has considerable brand equity, that it can exploit at all levels of the marketing channels.
This effort needs to both be focussed in both the domestic market as well as International Market to influence the 60 million or so tourists that visit, but more importantly to restore confidence in French wine amongst French consumers themselves.
Tony Spawton, Australia
Very interesting article on that important issue.
I am French, and selling wines in Central America in a very famous fine market in San Salvador.
Our portfolio includes more than 300 wines from all over the wine world. Guess what? The slowest wine to move is French wine. Another one ? The hardest supplier to work with as far as promotion is concerned are French wine importers and distributors. When I get a case of bottles from a Chilean winery .. I barely get listened to by the French counterparts. No surprise French wines are in such a bad shape internationally… And when you talk to French authorities travelling around about this fact, they look down at you and say something like : “too bad…. But we are doing so well in Asia!” And I know it is not true generally speaking.
Sure great wines are doing, as always, good (maybe not anymore great… but still good ).. but so many of them are doing nuts……. being “eaten” by new world wines here and there… regularly. French wine authorities are useless, they do not want to contradict their… voters!!!! And you know what is the worse of it? People here around do appreciate French wines .. when they get to know them!
Meanwhile, new world wines are getting better, adapting themselves to trends, trying new blends.. Even the cheap ones! That is really too bad!
Thank you for your magazine, a great inspiration for me.
Gilles Tallent
The debate regarding this issue –“France must change way it markets wines to the UK”- rest over a very simple premise: Region versus Country; the political entity versus the human natural Terroir.
History tell me and teach us a very clear lesson; let's free the regions from the iron fits and supreme-interest of the political power house in the main capital city; who run the destiny of one national entity; well known as a country; republic; kingdom etcetera; etcetera.....
California constantly is selling its wines: from California; not from USA. The brand USA is not very sexy among the wine lovers all over the world; California is another story.
It happens with Chile and Argentina; these two concepts are in constant collision with the local wine producers; taxes; rules of engagements; etcetera; etcetera.
And another fact; when the most attractive wine market today in the world –USA- read in the label: “Industria Argentina…..”; - that Country Tag is not an asset; it is a Liability –despite the growth in the demand; one digit percent increase in demand is better than cero growth, but…..is not enought-
It happen today within the new generations in power; the label Made in France; it is not any more a strong add value as used to be; a contraire; it is a disadvantage.
Regions are more likable than the Brand Country in these days; France never produce wines; Bordeaux; Loire; Bourgogne; Beaujolais; does; it is more “sexy”.
Carlos I. Yañes D, USA
The last thing France should do is throw all its money into marketing and lifestyle brands. Customers who buy those wines are looking for saturated ripe fruits, consistency and the lowest price point varietal wines. This category is not France's strength; nor should it be. They will always lose to warm-climate New World conglomerates that rule this category.
As a retail chain buyer the strongest segment of French wines I sell are basic AOC wines with good value. Our customers adore $10-$20 retail wines from basic AOCs like Bourgogne, Côtes-du-Rhône and Bordeaux Superieur. They can find these regions easily on the map and feel comfortable yet “sophisticated” in their purchase. The customers who look to this category are our core customers who enjoy wine on a regular basis. It's also a good entry point if we are ever to sell customers more esoteric appellations and blends.
Toni Ketrenos, Portland, USA
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