Warning: This might sound controversial. Wine brands are boring. The wine inside the bottle might be exciting and offer a great tasting experience, but the overall product presentation often ends with the overused term 'storytelling.' This usually means: A passionate winemaker (even better if they’re a former banker, dentist, or architect—in other words, a wine lover with a well-padded bank account) ventured out into the world to passionately produce wine. And of course, it’s never about the money, but about self-fulfillment.
This is charming the first time you read it, and maybe even the third. But then it becomes redundant. Yet products need to inspire consumers, time and again. The same old story won’t do the trick.
Yes, in mass markets, secondary placement and seasonal displays can drive impulse purchases, especially in entry-level segments. But this often comes with hefty discounts, making life harder for producers. Discounts don’t sell brands; they only sell price. A strong brand, however, can command good to excellent volumes even at higher prices and can master the full (pricing) spectrum of marketing. And here, it’s worth looking beyond the grapevine to the spirits industry.
A recent example: The Scotch brand Johnnie Walker. Currently, they’re inviting customers—and those they hope will become customers—to visit their showroom in Edinburgh, where they can create their own personalized bottle. Enhanced with a touch of artificial intelligence, this offers a genuine customer experience: The customer answers a few questions, and a label design tailored to them is automatically generated, based on the work of Scottish artist Scott Naismith. Naturally, the customer can purchase the bottle with ‘their’ label.
Products need to inspire consumers, time and again.
This is innovation. And innovation creates added value. The customer must feel, that a product with this or that feature, is more valuable. Then, he is not only willing to spend more money, but also wants to be part of the brand world. This kind of brand loyalty is priceless.
Yet Johnnie Walker isn’t an ultra-premium product—or at least not exclusively. The entry-level Red Label costs around €14 in local supermarkets and can even be found in mini bottles at checkout, alongside generic herbal liqueurs and budget brandy. On the other hand, the premium Blue Label line starts at around €130, with special editions fetching thousands of euros online.
Which wine brand manages such a balancing act —from on-the-go shots to the premium segment? The few that succeed can be counted on one hand, and almost all of them are either (celebrity) rosés from Provence or Champagne. Yes, a few cult wineries have made noise with NFT deals or artist editions, but it’s still open if this represents sustainable brand management from entry-level to premium. Instead, these are often one-off actions that cause a temporary stir but fade away just as quickly. And they rarely offer true experiences.
It’s true that spirits brands often have lavish marketing budgets and can present their brands on a silver platter. But why is that? Because smart marketing allows them to achieve higher margins. The higher the brand’s value, the higher the margin—at least that’s the assumption, since the major importers and manufacturers are, of course, not sharing their secrets. It’s often said, though, that the packaging and marketing cost significantly more than the contents of the bottle. This calculation rarely works for wine—and it shouldn’t, because we all want a good product in the glass, not least the consumer. But broadening our (marketing) perspective in this direction could certainly benefit the wine industry.
The views and opinions expressed in the Devil's Advocate pieces are those of the writer, and do not necessarily reflect the views or positions of the publication. They are intended to provoke discussion and debate. If you would like to offer your own response to this or any other article, please email the editor-in-chief, Anja Zimmer at zimmer@meininger.de.
Don't forget to subscribe to our newsletter. Be the first to know and never miss out on important updates.
