Tesco looks to finest to boost bag-in-box format

Tesco is rolling out five of the best-selling wines from its *finest range into bespoke 1.5L bag-in-box formats from tomorrow in a bid to boost different packaging ce format. 

The new upmarket boxed wine, which comprises a Fiano, Montepulciano, Picpoul de Pinet (rsp: £14.99), and a Chenin Blanc (rsp: £12.99) and Shiraz (rsp: £13.99) from Swartland, South Africa, will be available nationwide, Tesco said.

UK and global category product development manager Laura Jewell MW said the new 1.5L format was lighter, more compact and more convenient than two equivalent 75cl glass bottles and would keep the wine fresh for six weeks. “We felt this size was perfect for our *finest brand,” she said. 

The wines are being bottled by Accolade Wines, which signed a three-year business agreement with the retailer last October, at its Bristol-based bottling plant, Accolade Park.

The move comes a year after Tesco UK and group wine director Dan Jago said the *finest range had the brand credentials change consumers’ perceptions of wine packaging.

“We changed the world on screw cap and I think we can do more in bag-in-box,” he told The Grocer magazine at the time. 

The retailer had trialled wider used of 2.5L and 1.5L bag-in-box formats in express stores, but Jago admitted that although retailers had a responsibility to lead consumers, they could not force them to adopt something they weren’t naturally ready to do.

Boxed wine currently accounts for around 5% of the total value of still wine. Larger formats have seen sales decline, but retailers admitted that reducing the size of bag-in-box formats from 3L to 2.5L had played a key in tempting consumers to trial boxed formats. However industry experts say the UK has a long way to go to catch up to the Nordic countries, where boxed wine accounts for a far greater proportion of wine sales. 

Stratford's new venture

The former managing director of Stratford Wine Agencies has launched a new wine agency business, Tarrystone Wine Agencies.

The new venture, which was launched at the Beautiful South tasting on Wednesday, will focus on bringing small, innovative producers to the UK independent retail and wholesale sector, it said.  

"The aim is to offer new and interesting products ensuring outstanding value and a point of difference for customers throughout the UK," md Paul Stratford said. 

It has launched with Argentine estate Bodega Marco Zuni, a modern winery in San Rafael in Mendoza which was created by three French winemakers. The portfolio comprises six wines, a cabernet sauvignon 2013, chardonnay 2013, malbec 2012, malbec-bonado 2012, a blend selection 2012, and a rosé.

The new agency business will be based in Cookham, where Stratford runs independent wine shop, the Old Butcher’s Wine Cellar.  

Stratford Wine Agency Ltd entered into administration in September 2012 citing "eroding margins and cash demands" for its financial struggle, and was bought by FE Barber, parent company of Kingsland Wine & Spirits and Legacy Wines. The Cookham headquarters were closed by FE Barber in December 2012 with administrative functions transferring to FE Barber’s Irlam-based offices. 

Drinks lobby coasts into battle

The Call Time on Duty campaign ramped up its activity against the duty escalator a notch last night with the launch of a new ‘coaster campaign’ to raise public awareness. Before the Budget on 19 March, it plans to release over 300,000 ‘drinks coasters’ into the on-trade to raise public awareness of how much UK consumers pay in duty on wine and spirits – and put pressure on George Osbourne to abolish the“punitive” above inflation hikes.

(And make no mistake, though they may look the same, drinks coasters are definitely NOT the same as beer mats, I was firmly told.)

The event – at a hotel bar in Westminster – brought together the brains behind the campaign: the Wine & Spirits Trade Association, the Scotch Whisky Association, and the Tax Payers’ Alliance; with members of the drinks industry and some notable faces from Westminster. Among them, former Defra minister Caroline Spelman and the SNP member for Moray, Angus Robertson. Whether they were there to lend their support or maybe just for a quick drink and a catch up, remains to be seen; the mood in the room was certainly upbeat. But will the Call Time on Duty Campaign gets what it wants?

The industry seems hopeful. Speaking to The Grocer, Tesco BWS boss Dan Jago called it an “impressive” campaign, and with the three organisations pooling their experience, it was likely to bring some clout. “Tackling it with one voice is very powerful,” he said.

This is certainly what the SWA is hoping for. With the association itself booming and an explosion of distilleries being set up, it says it’s vital to keep the momentum going. Although export may be the Holy Grail, new, smaller malt whisky brands are reliant on the domestic market to establish themselves and bring in income during the early years when stock is laid down to mature. Suppressing the domestic market is likely to have repercussions – and a government’s attitude towards its own produce can be instrumental in attracting lucrative export markets.

The TPA, meanwhile, is confident its experience in helping to get the escalator scrapped on beer last year will stand it in good stead. It also cannily recognises the importance of this Budget being both an election budget – in which voter-pleasing initiatives never go amiss – and coming six months before the Scottish vote on independence. Showing support for Scotland’s national drink – which accounts for 25% of the UK’s food and drink exports and is worth £20bn to the UK economy – may be an added incentive.

“We’re confident of a win - but when it might come into effect and how much it will be, is another matter,” one of its representatives told me.

According to the WSTA, meetings with the economic secretary to the Treasury Nicky Morgan had given it cause to be hopeful – she was “receptive”, if giving little away.

But whether George O is willing to give anything away will be evident in just under three weeks’ time. Until then, there’s time to pour yourself a stiff drink – just don't put it on a beer mat.

This article was first published in the Daily Bread newsletter by The Grocer