While some worldwide producers slash prices and cut marketing budgets to meet post-recession thriftiness in the US, a few Chilean wineries are taking a different tactic and pushing their premium wines and injecting capital into their marketing instead, according to a feature published in Shaken News Daily. “We’re working hard …and putting money into marketing to boost the higher-priced wines,” Aurelio Montes from Vina Montes (who this year launched a $300US ultra-premium wine) told the publication earlier in the month. “What we won’t do is decrease prices. Once you go down that road, you’re there forever.”
Although the US is a very price driven market, many Chilean wineries, like Montes, still want to show the consumer the best Chile has to offer, and that means encouraging them to try their top level wines, something which has reaped success recently for a few brands.
Chile’s top wines offer incredible value to the consumer for their quality, concentration and character. “We believe the value you get out of Chile at $50 matches up to Napa at $150, and Chile at $100 matches up to Bordeaux at $300,” Santa Carolina Estates Global Commercial Director, Christian Wylie told Shaken News Daily. “We’re making inroads, slowly but surely.”
The importance in spending in marketing, pushing your premium lines and maintaining and growing your presence and consumer base is something that even the more value-focused wineries are extolling. While Concha y Toro experienced an 8% dip in sales of their value lines (at $5-6US per bottle), their premium wines ($15- 20US) saw a boost in sales by 15% last year.
Even though times may be tough, it seems that everyone still looks forward to a great glass of wine every once in a while – and Chile is positioning itself to accommodate that delicious splurge!
By Amanda Barnes
Read the full report in Shaken News Daily at http://www.shankennewsdaily.com/index.php/2013/08/06/6431/chilean-winemakers-enliven-image-with-move-upmarket/