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Treasury Wine Estate's to drive premium wines in the convenience sector

Published:  24 October, 2014

Treasury Wine Estates will continue to focus on the opportunity and potential for premiumising wines in the convenience sector through the festive trading period and into 2015.

Dan Townsend, general manager for the UK and Western Europe, said: "We are a premium branded wine supplier. We need to build this category."

Shaun Heyes, head of convenience and wholesale at Treasury Wine Estates added: "There is a real opportunity for the convenience sector." 

TWE is looking to grow their business by £200 million by 2019 in the impulse category. It estimates that if just six people in each convenience store buy a bottle of wine it can grow the category by £200 million.  "It is about getting six incremental shoppers. If we can do that, we can unlock this channel," said Heyes.

Part of TWE's strategy is to invest in and help support retail owners to get a better understanding of the wine category as a whole and to understand the importance of offering a range wines, including wines more on the premium end. The £6-8 range is 27.2% of value sales for the impulse channel and 18.1% of value sales for the over £8 category.

Heyes admitted that is a challenge to educate so many shop owners about a product they potential don't even consume. Heyes said: "There are over 45,000 of these stores.  Reaching them in the approbate way is tough."

But the company is looking to continually invest in opportunities like category advice for retailers and attending trade shows in order to better reach convenience store retailers. The approach which was implemented earlier this year and does appear to be paying off.

Lindeman's Bin and Wolf Blass Red Label saw year on year growth by 23% and 22% respectively in the impulse category, according to TWE.

Gifting during the festive period is also a huge opportunity that TWE will be focusing on leading up to Christmas. Sales in £10 and above category double during this period.  This translates to one out of every eight bottles sold is over £10 in the weeks leading up to Christmas.  TWE hopes to capitalise on this trend with the roll out of a limited edition Penfolds Koonunga Hill Gift Pack with an RRP £9.99.