SPOTLIGHT ON LIQUOR: TWE


GTR stands to benefit as TWE surveys ‘unchartered terroir’


Treasury Wine Estates (TWE) unveiled its ‘raison d’être’ for French wine last month to both customers and select members of the travel retail press – including TRBusiness. Luke Barras-Hill reports from this exclusive launch event in Paris.


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evealing TWE’s Maison de Grand Esprit collection of French wines in Paris, Chief


Marketing Officer Simon Marton admitted that the company was entering ‘unchartered territory’. TWE today produces over 30.1m


cases per year that sell across 70-plus countries in four regions. Yet until now, it had yet to enter the French wine trade. During the company’s inaugural


investor day earlier this year, TWE CEO Michael Clarke stressed the need to deliver a ‘new world’ mentality to marketing and selling wine. Now, the French dream has became reality. “The luxury French wine category


is very traditional, successful, but there is space to bring a more consumer-orientated position to the market,” explains Marton. “What we are doing will potentially


raise some eyebrows in terms of bringing innovation and news to the category, but I think it desperately needs it.” Marton explains that the ‘unique


proposition’ aims to engage younger generations, as French wine’s different systems, classifications, and regions can sometimes appear complicated to consumers.


French diversity, one house Maison de Grand Esprit, which translates as ‘house of great minds’, sources wines from Bordeaux, Burgundy, Rhône and Provence in a celebration of French winemaking’s diverse regions – all branded under one house. The three-pillared collection is set


to launch into North Asian markets such as Greater China and Japan in November, before rolling out to


JULY 2017


other global regions in 2018. Consultant Winemaker Sebastien


Long is the driving force behind the new collection. Tasked with fusing ‘old world’ techniques with a ‘new world’ mentality and style, Long has created a varied portfolio that TWE says challenges the traditional conventions of French winemaking. Marton says travel retail will


play a key role in the rollout. “The one thing in travel retail, we believe, is the French category is underdeveloped outside Champagne; as a category leader, we think there is an opportunity to bring more consumers into French still wine through travel retail.”


China airport penetration The firm believes China’s airport market – in addition to its cross- border shops and other non-flight transport channels, represent strong growth opportunities for the wider business. “TWE brands currently have


strong penetration within China’s international airports; our goal in time is to strive for complete penetration within all international airports in China,” comments Barry Galloway, General Manager – Global Travel Retail and Global Customers, TWE. In its interim 2017 financial results


earlier this year, TWE posted a +20% gain in overall net revenues to reach $1,294.7m, flanked by strong volume growth in the UK and Americas as a result of the Diageo wines acquisition – which it completed last year. Regionally, while the Americas


accounted for the largest net sales haul at $566.3m (+25.6%), Asia caught the headlines, growing by


TWE customers gather in the majestic surroundings of Hotel d’Evreux, adjacent to Paris’ historic Vendôme square for the portfolio unveil.


+38.7% to $218.1m. Treasury Wine Estates now


predicts that total cash synergies from the acquisition of Diageo’s wines will reach a run-rate of $35m by fiscal year 2020. «


“What we are doing will potentially raise some eyebrows in terms of bringing innovation and news to the category, but I think it desperately needs it.”


Simon Marton, Chief Marketing Officer, TWE


Maison de Grant Esprit: the line up


• Grand Esprit - Saint-Estèphe (Bordeaux) • La Mystèriale - Santenay Premier Cru (Burgundy) • La Mystèriale - Lussac-Saint Émilion (Bordeaux) • La Mystèriale – Châteauneuf-du-Pape (Rhone) • L’être Magique - Bordeaux (Bordeaux) • L’être Magique – Bourgogne (Burgundy) • L’être Magique - Crémant de Bourgogne (Burgundy) • L’être Magique - Côtes de Provence Rosé (Provence)


TRBUSINESS 51


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