UK: Balancing Private Label Pressures and Premium Wine Distribution in a Complex Route to Market
Challenge: In the UK, supermarket chains hold significant power, frequently pushing wine producers to offer private labels at competitive price points. This pressure created a challenge for branded premium wines, which faced stiff competition while meeting high quality standards and undergoing rigorous audits required by retailers.
Action: A dual Route to Market approach was developed, enabling the brand to meet private label demand without compromising the integrity of its premium offerings. Simultaneously, efforts were made to expand distribution into high-end retail and specialty stores to maintain a strong premium brand presence.
Results: The balanced strategy led to greater market penetration in both private label and premium segments. Wineries were able to preserve their premium positioning in high-end outlets while meeting the demands of supermarkets, improving overall sales performance in the UK.