Project Veraison

SOPHIE PREECE

MARLBOROUGH SAUVIGNON Blanc has fallen into the safe but “boring” category among Australian wine consumers, stifling its stellar sales figures. However, a new positioning promises “a fresh awakening”, with potential for a $100 million boost to Marlborough Sauvignon Blanc sales across the Tasman by 2022, based on an additional $1 per bottle sold.

Marlborough Sauvignon Blanc remains Australia’s most consumed wine at home, capturing 40% of those wine drinkers every month. But 10% are drinking less Marlborough Sauvignon than they were a year ago, according to research done through Project Veraison, an initiative led by New Zealand Trade and Enterprise (NZTE), in partnership with Giesen Wines and Villa Maria.

Meanwhile, 85% to 90% of Marlborough Sauvignon Blanc is sold on promotion by Australian retailers and 12% of consumers think it’s “boring”, says project leader Catherine Wansink, a commercial business advisor at NZTE. “It is very consistent and people know what they are getting… That’s part of its success and also part of its downfall.”

In 2019, Project Veraison took a “deep dive” into category data and spoke to retailers and consumers, including lapsed Sauvignon Blanc drinkers, to better understand the enthusiasm – or waning energy – for a category deemed dependable, but not innovative. “In an era of ever evolving choices and stimulating new flavours, Marlborough Sauvignon Blanc is seen to offer nothing new,” Catherine told attendees at a recent industry webinar. In even harsher terms, one former fan interviewed said “Sav Blanc just seems a bit ordinary or yesterday”.

Another important finding of the work, conducted throughout 2019, was the disconnect between Marlborough the place and Marlborough Sauvignon Blanc the wine, says Catherine. They also recognised opportunity to better tell the story of diversity in the category. “It’s not all the one same white wine.” She says there’s plenty to be said about the different subregions, styles and quality tiers amid Marlborough Sauvignon Blanc, “but that story wasn’t getting through to the consumer”. That represents an “amazing opportunity”, she says. “Marlborough Sauvignon Blanc has all the right notes to ride this change.”

She says one of the drivers of the project was wine companies’ concerns over “deep discounting” in the retail market. Promotional cycles see one of the major producers always on promotion, down to $10 per bottle or less, “and therefore those brands became interchangeable”, says Catherine. That was backed up by consumer research, which indicated buyers had a repertoire of three or four brands they would switch between, depending on the discount. Marlborough Sauvignon Blanc’s brand equity is being “undermined by deep discounting and overfamiliar consumers, leading to a decline in overall value”, says Catherine.

However, the various challenges offer “a burning platform for change”, with opportunity to accelerate the “performance trajectory” of the category, she says. Project Veraison, working with strategy and marketing specialists in Australia, has developed a six-point growth vision (see sidebox), to update and invigorate the perception of the category, “inspiring Australian consumers to discover the innovative, exciting tastes of Marlborough Sauvignon Blanc – and an experience that’s only from Marlborough”.

The project revealed the need for better communication of “new news” around Marlborough Sauvignon Blanc, to “reinvigorate and engage” consumers. That information needs to embed “dimensionality” but also needs to be easily understood and identified, it says. The project discusses potential innovation routes, including leveraging sustainability values, and developing and communicating innovations in processes, production and experience. It also recommends an offering of tiers, with “clear reasons to trade up”. As an example, the project quotes one respondent as comparing Villa Maria to Johnnie Walker’s black and red labels. “Here you have the white and the gold label. The gold is special not every day.”

Villa Maria’s chief global sales and marketing officer Matt Deller (see page 13) says having “a very clear quality ladder” from Private Bin to Reserve wines means customers can “trade up” and see the benefit of paying a little extra each time.

The “dependability” of Marlborough Sauvignon Blanc drove a boost in sales over the Covid-19 lockdowns last year, as more people chose to drink the category at home. “People were going to what they know and trust and what is good value,” says Catherine. “But even though sales were still strong, the concern was more around the brand equity and deep discounting.”

She says the timing of the research - conducted before Covid-19 saw the launch of NZTE’s Made with Care food and beverage campaign - meant Marlborough Sauvignon Blanc producers were ready to meet the world’s curiosity. Project Veraison has been absorbed into Made with Care, helping grow the connection between the category and its “uniquely Marlborough” provenance, says Catherine. The Made with Care campaign has now allowed for the Project Harvest (see page 15) video campaign to be released in Australia this month, showcasing the provenance, innovations and sustainability stories of Marlborough Sauvignon Blanc, as well as its sociability, emphasised as a wine that pairs well with food and deserves a strong position on wine lists.

The timing was also fortuitous given the supply challenges carried on the smaller than expected 2021 harvest, says Catherine, who believes Project Veraison’s growth strategy will help boost excitement around Marlborough Sauvignon Blanc while turning off the discount tap. “It’s exciting to see the Veraison strategy come to life in the upcoming digital campaign. The repositioning couldn’t have come at a better time.”

Six growth drivers for Marlborough Sauvignon Blanc in Australia:

Uniquely Marlborough - A Fresh Awakening Marlborough Sauvignon Blanc is a unique tasting wine from a pristine region. Encourage consumers to reconnect with the category by exposing them to the distinctive wine style and unique taste experiences that can only come from Marlborough.Curious Discovery There’s an opportunity to better educate consumers about the diverse and varied styles available to position it as an exciting option that consistently delivers great taste and experience.Mindful Consumption Mindful consumption is growing in importance, but consumers don’t currently associate Marlborough Sauvignon Blanc with being the mindful choice.

Food Pairing We need to clearly demonstrate the value of the category as a preferred partner for popular modern Australian foods by building the association through on premise and consumer campaigns.Social Sharing The perception of Marlborough Sauvignon Blanc as an everyday wine means consumers are choosing alternatives that offer more excitement and interest. Building the story of Marlborough Sauvignon Blanc, with reference to its unique provenance and distinctive character, will help to reposition it as a remarkable drink made for social sharing.Inspiring to Buy Loyal consumers know they want to buy Marlborough Sauvignon Blanc when they shop, but struggle to navigate the category, defaulting to price to make decisions.

Project Harvest links wine with place

SOPHIE PREECE

“It’s literally Marlborough in a bottle,” says Duncan Shouler of the Giesen Estate Sauvignon Blanc, connecting a wine he loves to the soil and climate that creates it. Giesen’s chief winemaker is one of the voices in a digital campaign rolled out in Australia this month, talking of an extraordinary product from a unique place.

The winemakers and viticulturists filmed in Project Harvest – part of New Zealand Trade and Enterprise’s (NZTE) Made with Care food and beverage campaign - work to personify Marlborough and its Sauvignon, explaining the character forged from field to ferment, and from soils to stylistic choices. It is about “looking at what makes Marlborough special”, from rolling hills to riverbed soils, says Duncan. Connecting the wine to the place adds value, “and makes it a more real experience for the consumer”.

He notes that those well versed in wines and vines take the concept of terroir for granted. “But if you look at the average shopper looking for a clean, refreshing white wine at the supermarket – the sense of place might not exist for them. This is about getting across that in actual fact it is about the place. It is the region that makes these wines so recognisable; it is the soil profile and sunshine that makes these wines you love.”

Project leader Catherine Wansink, a commercial business advisor at NZTE, says one of the key findings of Project Veraison’s research (see main story) was that Australian consumers are not connecting Marlborough Sauvignon Blanc with the region, making “uniquely Marlborough” one of the strongest growth category drivers established by the project. The video campaign works to link the wine back to place, while growing understanding – and excitement – around the diversity of the wines from the region, both through stylistic and subregional influences, she says.

Duncan says Giesen makes a lot of different styles of Sauvignon Blanc and always “champions the variety”. But when talking about the personality of place, the one that comes to mind for him is the company’s Estate Sauvignon Blanc. “It has so much history and it’s what the company is built on, and is our expression of a classic Marlborough Sauvignon Blanc.” He loves the small production barrel fermented expressions of the variety, “but I get a lot of satisfaction out of seeing people drink Giesen Estate, because it’s our expression of Marlborough as a whole”. The Project Harvest digital campaign will be live from the first week of May and will run for five weeks, to coincide with International Sauvignon Blanc Day (#sauvblancday) on May 7 2021.