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Copyright ACNielsen 2004
Building Value:
Trends and Challenges for
Australian Wine Brands
Australian Off Premise Market 2004
Anton Van Den Berg
Marketing Director, ACNielsen Australia
November 2004
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Copyright ACNielsen 2004
Agenda

Executive Insights
Key Trends
Data Source

Key Issues
Market Shape and Value
Wine Brand Successes in 2004

Implications
Retailer Dynamics
Innovation and NPD
Likely Trends
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Executive Insights
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Key Trends

Value Growth in the Alcohol Market
Driven by beer and RTD category
Stable value growth in wine market

Table Wine Growth fuelled by whites
Particularly above $10

Brand Challenges
Changing retail landscape
Challenge to get attention in a busy market
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ACNielsen ScanTrack Liquor

Only off premise industry measure
 Draws data from over 2,300 outlets
 Only industry measure of outlet sales to consumers
% Value
ScanTrack
Liquor
Coverage
Benefit
65%
35%
Total Other Liquor Stores
And Hotels
(ACNielsen Sample Audit)
Ritchies / Liquor Barons /
ALH/ Grape/ Chambers
Coles Myer Liquor Group
Woolworths Liquor Group
Total Liquor Sales
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Category Performance
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Remarkable growth platform from beer category,
wine growth appears to have leveled
Beer
Share
Growth
40%
9%
25%
6%
18%
14%
17%
3%
Packaged Only
Total Wine
Including Cask
RTD
Including Cider
Spirits
Including Liqueurs
Total Value
$11bn
Value MAT to April 04, Off Premise
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Liquor’s total value growth benchmarks
particularly well
Share
Growth
40%
9%
25%
6%
4.5% Growth
14%
Total Packaged Liquor
Beer
Packaged Only
Total Wine
Including Cask
RTD
Including Cider
Spirits
7.1% Growth
Total Packaged Grocery
18%
Total Convenience
8.2%17%
Growth
3%
Including Liqueurs
Value MAT to April 04, Off Premise
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Retailers derive less than a third of their revenue
from manufacturers outside the top 5
Fosters
Lion Nathan
Top 5 Players
Diageo
68% Value of the Market
Maxxium
Orlando Wyndham
Southcorp
Hardy Wines
Independent
Swift & Moore
De Bortoli Wines
Total Off Premise Alcohol – Top 10 Players, Value MAT April 2004
Copyright ACNielsen 2004
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Table Wine Value Split by Price
% Share
530 Brands Under $10
30%
Under $10
2,400 Brands Over $10
Over $10
70%
100 Brands Make Up 50% of the
Australian Off Premise Table Wine
Market
Total Table Wine – Value MAT September 2004
Copyright ACNielsen 2004
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Table Wine Growth Split by Price
12%
% Growth
% Growth
7%
8%
White
4%
Red
2%
0%
Under $10
Over $10
Total Table Wine – Value MAT September 2004
Copyright ACNielsen 2004
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Table Wine Growth Split by White/Red by Price
12%
% Growth
8%
White
Red
2%
0%
Under $10
Over $10
Total Table Wine – Value MAT September 2004
Copyright ACNielsen 2004
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Top White Growth Brands Over $10 for 2004
Brand
Growth
20%
BROWN BROS
WOLF BLASS
9%
HOUGHTON
9%
29%
EVANS & TATE
9%
GOUNDREY
PETER LEHMANN
14%
YALUMBA
10%
TAYLORS
10%
FOUR SISTERS
10%
MOONDAH BROOK
18%
STONELEIGH
47%
Total Table Wine – Value MAT September 2004
Copyright ACNielsen 2004
Outside Top 10
Table Wine
Brands
7 of 8 outside
the Big 4
Manufacturers
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Top White Growth Brands Over $10 by Value
Contribution for 2004
Brand
Rank
BROWN BROS
1
EVANS AND TATE
2
HOUGHTON
3
STONELEIGH
4
WOLF BLASS
5
YELLOWTAIL
6
OYSTER BAY
7
PETER LEHMANN
8
MADFISH BAY
9
MOONDAH BROOK
10
BROOKLAND VALLEY
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Total Table Wine – Value MAT September 2004
Copyright ACNielsen 2004
5 WA brands
and 2 from New
Zealand
7 of 11 outside
the Big 4
Manufacturers
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The struggle for Attention Under $10

Media spend across all alcohol is on the rise
In particular the wine market
TV for Hardys, Lindemans, Wolf Blass, Saltram
and Half Mile Creek

Wine market is flooded with brands with more
entering fast
- Current wine surplus
Private labels and cleanskins offer margin
guarantees in a competitive price environment
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Opportunity Takers Above $10

Strong brands on the march
- Often family owned
- Often using niche or emerging varietals
Sauvignon Blanc Semillon Blends
Sauvignon Blanc
Italian styles

Focused on strong brand image
Regionality certainly seems to count!
Not necessarily above the line support
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Retailer Dynamics

Close to half the off-premise wine market
value is in the stewardship of 2 retailers
Wine will start entering supermarket aisles
Real implications for range rationalisation
Real implications for brand and price
positioning (there are no sales team in the
aisles)

Liquor is a real and attainable growth prize for
the 2 major retailers
Requires a business model that specifically
caters for an evolving retail landscape
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Innovation and NPD

Several launches have made an impact in the
wine market in last 12 months
Pink – probably the launch of recent years
White Shiraz – including Banrock Station
Half Mile Creek – distribution via a brewer
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Implications
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Implications

Wine growth steady but the opportunities in
the wine market are not going to the big
companies as a group
Strong brands regardless of manufacturer are
the key, scale simply provides the resource to
leverage success and positioning
Surplus wine makes cleanskin and private label
solid margin protection options. Driving brand
equity behind brands reduces the need for
retailers to default to these options
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Retailer Dynamics

Retail Environment
Supermarket aisles will change our landscape
Need skilled National Account Management
Real implications for brand and price
positioning (there are no sales team in the
aisles)
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