Angove's bold move to boost global sales
- 10/08/2003


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Australia’s 10th largest winery by branded wine sales, Angove’s, plans to delete one of its major brands and replace it with an as yet untried label in a bold step to boost global sales.

Angove’s has decided to remove from its brand portfolio the Classic Reserve label which sells more than 150,000 cases of wine per year worldwide.

However, Angove’s is certain its replacement, the Long Row label, will drive the South Australian family-owned company’s sales well into the future.

“The strategic move to delete a major brand like Classic Reserve was a huge decision for us to make,’’ Angove’s Director of Sales and Marketing Tim Boydell said.

“Removing a brand that sells 150,000 cases a year was not a decision that we took lightly. But we must look to the company’s long term future. Long Row has the potential to re-define Angove’s on the national and international stage.

“This is an exciting period for Angove’s and it’s a quantum leap in our brand strategy.’’

Angove’s expects Long Row, named to reflect the massive redevelopment underway at the company’s flagship Nanya Vineyard in South Australia, to more than match Classic Reserve’s sales in its first year. Angove’s is targeting 250,000 cases by 2005.

Mr Boydell said creating strong brands with broad global appeal was pivotal to the future success of the family-owned company.

“The real value of a company such as ours is its brands and we are all about making and selling wine that appeals to the broadest global market,’’ he said.

Angove’s has identified Long Row as the replacement for Classic Reserve whose appeal has begun to wane in some countries.

“Classic Reserve was more successful in some countries than others,’’ Mr Boydell said.

“It was popular in the UK and Australia but was not selling as well as we would like in the United States.’’

Mr Boydell said international restrictions against using the words Classic and Reserve to describe wine in some parts of Europe had also restrained ongoing growth in export sales.

“Our research shows that the Long Row range will have great appeal throughout all our markets and it is consistent with Angove’s value for money mantra,’’ he said.

The Long Row range, which will be launched domestically on September 1 and sell under $10, will include a 2002 Chardonnay, 2003 Sauvignon Blanc, 2003 Pinot Noir, 2002 Cabernet Sauvignon, 2002 Shiraz and 2002 Merlot. It will roll out internationally from January 1.

The Red wines from the 2002 vintage will reflect the “Vintage of the Century’’ for the Riverland region.

“We are also using grapes from cooler premium regions to add extra character and complexity to the wines, ensuring that they truly over-deliver in terms of quality and value for money,’’ Mr Boydell said.

“We are removing one brand but launching another which we are confident will prove far more successful. It’s a big move and while it does involve some risk, it is a strategic move. This has been a long-term project for Angove’s. We have done our homework and expect results.’’

Angove’s produces more than 1.3 million cases of wine for both domestic sale and throughout Asia, Europe and the United States each year. More than 200,000 cases of St Agnes brandy and Stone’s Green Ginger Wine are also sold annually.

While exports currently represent 40 per cent of the company’s total business, they are expected to grow in the next few years to account for more than half of the company’s operations

Behind the Long Row name:

The label Long Row reflects the massive redevelopment at the Nanya Vineyard in Renmark, South Australia where the rows are being transformed from short rows running North-South to long rows running East-West. Once completed in 2015 the rows will be 5km in length. It also reflects the company’s family history spanning five generations.

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