By Amy Looker
Retailers can help to support the Australian wine industry by hand-selling Australian brands over imported ones, according to Brown Brothers managing director Ross Brown.
"In times where our economy is under pressure there is an ever-increasing number of imported wines hitting our shores – not just from New Zealand, but Italian, Chilean, and French," Brown told TheShout.
"Show your shoppers some great examples of Australian Sauvignon Blanc, Australian Tempranillo, Pinot Grigio and Pinot Noir," he said.
"When we attempt to sell our wines into other markets their stores certainly support their own local wines, so a bit of patriotism in a time of great economic uncertainty definitely wouldn't hurt and we are confident customers would support it."
Brown said Brown Brothers was committed to understanding Australian wine drinkers and sharing their insights with retailers in a bid to boost both its own sales and that of its retail partners.
"We must understand our shoppers better and share those insights with retailers to increase category value. This way our sales team calls should be more valuable to the retailers we visit as we focus on working together for better returns and stimulating purchase."
It’s a lot easier to sell wine that doesn’t have a 15% to 20% price variance to your competitors, all major producers including Brown Brothers discount heavily with majors and expect to make profit from independents, imported wines help us to compete, deliver value and make a living. The problem doesn’t lie with the retailers, suppliers are to eager to talk Aussie Aussie and not enough discount!!!
Jose, I agree with some of your coments, but Ross does have a point as well. We need to support the Australian WIne Industry BUT, surely there has to be the oppertunity to expose the original varietal from the country it comes from, which helps in the education process of selling tyhese new varietals?
I have nothing but respect for Ross and his sentiment, but I think it is very thin ice for a country itself so reliant on exports.
I believe the expansion of imports into mainstream spheres is somewhat inevitable for a maturing country, and, arguably, even desirable from the POV of both consumer creation and evolution.
Australia’s harsh economic reality – high cost inputs and a strong FX performance – might ultimately be its making, not its undoing: a determination to be valued as distinct both comparatively and competitively.
I believe if you want Australian Independnet retailers to Support Branded Australian wines, there needs to margin. 15 to 18%GP just covers the overheads of a retailer, so therefore what are branded products delivering when 85% of commercial wines are sold on promotion? Average margin return on Imported wines deliver 45% plus on promotion and consumers are now looking for something different.
I agree on some of what Ross says, but independant retailers have to look past products that are destroyed by the big volume stores.Lets call a spade a spade the big boys are brand destoyers not brand builders like the independents.
It would be better to see smaller stores supporting the smaller wineries that are trying as hard as possible to stay out of the majors and only in independents.
I like Ross’s wines but when it comes down to brass tacks a reatailer can only do whats best for his store!!