November 20, 2006
By PAUL-MARK RENDON
Andrew Peller Limited, Grimsby, Ont.
2006 Marketers That Mattered
SHARI NILES
VP of marketing at Andrew Peller Limited says the vintner found a way turn a damaged crop into a new wine brand
Say
the words "short crop" to anyone in the wine business and you're liable
to induce a panic attack. Shari Niles, vice-president of marketing at
Grimsby, Ont.-based vintner Andrew Peller Limited, knows the term all
too well. It's when Mother Nature's wrath on grapes means trouble for
next year's wine production.
Ontario experienced a short crop in grapes just last year, after a
brutal 2004/2005 winter stomped all over the province's grape
production levels. Only 20,000 metric tonnes were expected in 2005,
less than half the previous year's tally of 46,000. For the $1.9
billion Ontario wine industry, a linchpin in the national wine
business, it was grim news.
But for Peller, the shortage was serendipitous. It decided to devote
its surviving grapes to its upmarket brands like Peller Estates Private
Reserve and the Andrew Peller Signature Series, which meant having
nothing to market in the $10 to $15 price range. Fortunately, plans the
company had for new brands Croc Crossing and XOXO, wines that were
blends of domestic and international grapes, were near fruition.
For Croc, Australian varietals of Merlot, Cabernet Sauvignon,
Chardonnay or Riesling could be combined with what Ontario grapes they
had. The brand could be sold at Vineyards Estate Wines, the
Peller-owned retail chain, as a way to entice wine drinkers who liked
all things Aussie. To borrow another beverage-based saying, it was a
good way to take a lemon of a year and make lemonade. "We've got the
label, we've got the wine, and we've got the story," Niles says,
thinking back. "Sometimes you just get lucky."
Croc Crossing, Peller's answer to the industry's "critter brand"
trend that included cutesy labelled wines like Yellowtail, Little
Penguin and Naked Grape, debuted in June, 2006. Almost immediately, the
brand became responsible for 20% of retail sales at the 100 Vineyards
stores throughout Ontario, breathing life into revenues that had been
flat for three years prior. "Within the first month and a half," says
Niles, "we sold half-a-year's worth of product."
Not to be outdone, XOXO, which launched in late August as Peller's
newest addition to the growing lifestyle-oriented wine segment, also
managed to snag more than its fair share of the market.
Backed by
a launch campaign from Toronto agency Capital C that included packaging
that took its cues from the luxury fragrance world, full-colour box
shippers (not the boring brown corrugate) and a spokesperson deal with
model-turned-actress Tricia Helfer, a record 36,000 bottles of XOXO
were shipped out in the brand's first four weeks of existence. "Not
that we would ever compare ourselves to Yellowtail," says Terry
Sauriol, Peller's director of marketing, "but it took them four months
to hit that same level of sales."
Peller's marketing plans for XOXO were even enough to convince the
British Columbia Liquor Distribution Branch to launch it in all of its
stores on the same day throughout the province. No beer, spirit or wine
company had ever received the same level of support, Sauriol says.
In
July, Peller also proved it could lead by marketing its French Cross
brand as Canada's first domestically produced, eco-friendly Tetra Pak
of wine. In the period since its launch, it led its segment with 28%
market share, compared to the 18% owned by French Rabbit-an import
brand that had a one-year head start.
The 2006 summer, long and dry, bodes well for next year's grape
harvest. "This year is looking extremely positive," Niles says. And
with the type of year she's had, a marketing short crop isn't anywhere
in the forecast.