Innovation helps TWE in Australia
By Andy Young
Treasury Wine Estates' CEO Michael Clarke has said that innovation and successful consumer-led promotions have helped the company report solid growth in Australia.
Speaking about TWE’s performance in the Australian market Clarke said: “The year started promisingly with the successful execution of the Penfolds Wine Cabinet promotion. Having made a call to transfer the release dates of our flagship Penfolds brand the first October release of the Penfolds collection was sensational.
“Yellowglen again featured as a standout experience at the Spring Carnival with a record number of consumers tasting our wine at the track. Wolf Blass was the official wine partner of the ICC Cricket World Cup in Australia during February, with an integrated consumer promotion that saw this brand return to net sales revenue growth in the region.
“In June we officially opened the new cellar door and kitchen at Penfolds’ Magill Estate in Adelaide; now truly a global destination for Penfolds lovers around the world.
"Innovation and new product development were also at the heart of our brands' performance, with the Matua Taste Range and Pepperjacks Certified showing the potential of innovative, consumer-led ideas," Clarke said.
Overall TWE’s ANZ region reported solid EBITS growth, up 15 per cent to $84.4m, driven by its portfolio premiumisation. Consistent with broader market trends the headline volume in the region was below the prior year as the company focused on “sustainable volume and reducing inventory at select retail partners”.
However TWE-branded volume in Australia did increase by 1.6 per cent in fiscal ’15.