Freixenet Unlocks New Sales Opportunity in Sparkling Wine
10 Oct 2014 --- Sparkling Wine brand Freixenet has unveiled a new category blueprint that could help retailers unlock more than £100 million extra sparkling wine sales within three years.
The launch of the Freixenet, ‘Sparkling Wine Category Vision for the Future’ follows extensive research by the company that has helped to identify three category drivers to help deliver these incremental sales for convenience retailers.
The Sparkling Wine category is worth over £500m and is the fastest growing BWS category in both the on and off trade, and the only category in double digit growth% , growing five times as fast as the next category (cider) in the off trade. The convenience channel is experiencing the strongest growth for Sparkling Wine at +31% and accounts for over 25% share of the market.
However, penetration is still low with less than one in three shoppers buying into the fixture, and 20% of those accounting for 65% of sales. This demonstrates that that there is a huge opportunity for growth, by encouraging existing shoppers to purchase more frequently and by attracting new shoppers too.
As the leader in the Sparkling Wine category, Freixenet is well placed to help unlock this opportunity for retailers. The three drivers identified by Freixenet as part of the Sparkling Wine Category Vision for the Future are; “Create a Fizz In-store” (£37m), “Uncork the Future” (£34m) and “Make Everyday Sparkle” (£33m).
For “Create a Fizz In-store”, the vision is to retain current shoppers of the category and encourage them to buy more. Freixenet’s research revealed specific shopper types, based on frequency and store types, based on location. To ensure retailers are stocking the right range to target the shoppers visiting their store type, Freixenet offers impartial category advice and range recommendations.
For “Make Everyday Sparkle”, the vision is to encourage less frequent shoppers of the category to purchase Sparkling Wine for occasions which are not as formal. They currently only buy into the category at key times of the year, whereas the 20% of frequent shoppers create their own occasions to enjoy Sparkling Wine. Retailers can tap into this by creating occasions beyond traditional celebrations and make them relevant to everyone – ‘Meal Deals’ and ‘Girls Night In’ – are just two examples where retailers can engage with their shoppers.
For “Uncork the Future”, the vision is to target the once a year and non-sparkling shoppers for additional occasions. The strategy that can achieve this is to encourage shoppers to trade up from Still wine into Sparkling. Not only does Sparkling Wine have a higher average pricepoint, but also has a higher average profit on return.
The unveiling of the Sparkling Wine Category Vision for the Future comes shortly after Freixenet announced a reinvigoration for the Cordon range, with a striking new pack design which reflects the quality, heritage and style of the brand.
The packaging refresh begins with the iconic Cordon Negro bottle available now, followed by Cordon Oro and Cordon Rosado. The brand is also supported by an exciting global campaign currently running, entitled, “Be Freixenet” as part of a £1m marketing activation plan in the UK.
