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Comparative Advertising Can Be Brutal
Sunday, 27th November, 2011
- David Farmer
In the 'War Declared' catalogue which the Coles owned chain First Choice distributed on the 16th November, on page two, there was an unusual comparison made between two NZ sauvignon blanc's, Oyster Bay with The Ned. The 'like this' , 'try this' arrows are meant to suggest that you should switch from the big selling Oyster Bay to the comparatively unknown The Ned.
This is a variant on the common practice of having two bottles side by side, one a brand leader, the other a lesser known brand, with the lesser known wine being cheaper; with the inference being that you should be wise and drink the cheaper wine of the same quality while saving money.
I originally thought the comparison, which seems a bit brutal, signalled that Oyster Bay would not contribute marketing funds to the catalogue and this was First Choice's way of expressing annoyance. I have since learnt the reasons are far more complex and the story tells us much about today's wine trade.
Marisco Vineyards, Marlborough, New Zealand is a new venture for owner Brent Marris which has developed from vineyards in 2003 to a 6000 tonne winery which opened in 2010. Marris is one of a number of brilliant winemakers who have helped put Marlborough on the map with a career spanning Delegates in the 1990s, incidentally the makers of Oyster Bay, to Wither Hills up to 2002 and an associated long record of medal winning wines. Indeed at the International Wine and Spirit Competition, 2011, held in London he was crowned New Zealand winemaker of the year. The Marisco wines are sold under two brands, The Ned and The King Series and by all accounts are very good.
Now setting up a new winery is an expensive business and the dream of success can only come true with perfect winemaking and the far harder part, perfect sales forecasts. The Australian liquor market is controlled by Woolworths and Coles. A few years back the conventional sales route was the producer sells to a distributor or wholesaler who will have an extensive portfolio and they in turn present this range to the trade. When you only have two buyers of any note that can sell large volumes there is a problem as unless either or both see a benefit in promoting the brand the winery will only ever have tiny sales. A new label sits well back in the queue.
I understand sales were below forecast in the Australian market and Marisco made a direct and possibly exclusive deal with Coles. That's how it now works in Australia. The role of the traditional wholesaler is greatly diminished and will shrink a lot further.
Interestingly I was told by a retailer who recently swung through the UK market that the cheapest New Zealand Sauvignon Blanc noted was The Ned at £6.99 in Majestic wines.
Mr Marris has been recently reported as saying; "I think what sets us apart is that we are eternal optimists. We're 110 per cent focused on what's possible, even when other people tell us it's impossible." Mr Marris is a brilliant winemaker and I wish him well with the new venture.
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