Reshaping the lingo of vino: Penfolds GM on modernising wine retail to drive premium sales – Exclusive interview
The international GM of Australian wine giant Penfolds has highlighted the importance of modernising retail concepts to shift consumer purchase habits from price to premiumisation, in an exclusive interview.
Amidst the COVID-19 pandemic, the alcohol industry has been one of the hardest-hit with on-trade sales particularly heavily impacted as a result of lockdown restrictions, which has made off-trade retail sales all the more important for alcohol firms.
Wine brands such as Penfolds in particular have needed to pay extra attention to upgrading their retail concepts and strategies, as the traditional method of promoting wines has always been to offer samples and tastings, a tactic which has become less plausible due to mask-wearing regulations.
“We did a brand study last year to better understand how consumers become aware of brands and make their retail purchases, and the results of this confirmed for us that retail visibility is very key in driving awareness,” Yodissen Mootoosamy, General Manager, Penfolds International (South East Asia, Japan, Korea, Europe & MEA) told FoodNavigator-Asia.
Socially responsible price hikes? Nestle promises APAC rises only if ‘non-compensable’ costs increase
Nestle has promised APAC consumers that any unavoidable price hikes as a result of ‘non-compensable’ cost increases will be passed on to consumers in a ‘socially responsible’ manner, after announcing positive organic growth in its Asia, Oceania and sub-Saharan Africa (AOA) zone for the past financial year.
Nestle reported its FY2021 full-year results on February 17, where it posted overall 7.5% organic growth in total sales to CHF87.1bn (US$94.8bn) and a 1.4% increase in profits to CHF15.1bn (US$16.4bn).
“Zone AOA specifically gave about 25% of organic sales and saw organic growth of 4.4% with sales of CHF20.7bn (US$22.5bn), which was quite an achievement amidst a very difficult sales environment with continued regional lockdowns,” Nestle Chief Financial Officer Francois-Xavier Rogers said during the results announcement.
Carlsberg Malaysia has predicted that the year ahead will continue to be a challenging one for the beer industry in view of rising costs and the COVID-19 Omicron variant, despite having seen a significant rise in profits and premium product sales in the last year.
Carlsberg Malaysia announced its FY2021 financial results on Feb 17 2021, posting a 23.9% jump in net profits to hit RM201mn (US$48mn), and flat annual revenue (-0.73%) to RM1.78bn (US$425.3mn). Much of the company’s profits were regained in Q42021, where it saw an 88.2% rise year-on-year profit of RM71.4mn (US$17.1mn).
“The most significant growth we saw was in our premium products portfolio, where there was a 15% increase in sales,” Carlsberg Malaysia Managing Director Stefano Clini told the floor at a press conference following the financial results announcement.
Watsons Singapore has introduced a refillable omega-3 supplement pack for the first time in the country – with local supplement brand Ocean Health.
Retailing at SGD$29.90 (US$21.95), each refillable pack contains 190 soft gels, with each containing 1000mg of omega 3.
Prior to the launch, the product was sold at SGD$21.60 (US$15.86) for a regular bottle of 60 soft gels and SGD$32.50 (US$23.86) for a large bottle of 180 soft gels.
Infant formula maker Bubs reported a record high gross revenue coming from corporate daigou companies, which help individual sellers navigate hurdles such as procurement and deliveries.
The ASX-listed Australian company announced its financial results for the first half of FY2022 on February 23. Gross revenue from the corporate daigou channel hit a record high, reporting a 276 per cent increase as compared to the prior corresponding period (pcp).
“Corporate daigou channels are digital marketing and consultancy companies that incorporate large numbers of retail daigou agents into their business operations through formal channels or platforms.
“Corporate daigou platforms help them manage the process of product procurement, delivery, and other logistics and administrative issues,” according to Haiqing Yu, associate professor at the School of Media and Communication, RMIT University.