Treasury, Refocusing Penfolds On The U.S., Unveils Latest Vintage Of Grange In New YorkOctober 15, 2014
Earlier this year, Treasury Wine Estates shifted the annual release of its Penfolds luxury wines to October (replacing the previous dates of March and May) to bolster availability in the run-up to the holidays. Now, in a new effort to increase Penfolds’ U.S. market presence, Treasury has relocated the global launch of Penfolds Grange from Adelaide to New York. This year’s event—marking the arrival of Grange’s 60th consecutive vintage, 2010—commences this week.
In addition to the flagship Grange ($850 a 750-ml. bottle at retail), Treasury will now focus on five specific wines from Penfolds’ Bin Series in the U.S. market: Bin 8 Cabernet-Shiraz ($24); Bin 9 Cabernet Sauvignon ($24); Bin 28 Shiraz ($30); Bin 389 Cabernet-Shiraz ($69) and Bin 407 Cabernet Sauvignon ($69).
To support the launch of Grange 2010 and Penfolds’ other luxury offerings for this year, Treasury is mounting a $1.2 million media campaign focused on print and digital. According to the company, the push will “shed light behind the often intriguing history of the Penfolds Bin Numbers and help demystify their meaning.”
The total Penfolds franchise hit a high-water mark of 750,000 cases in the U.S. back in 2008, according to Impact Databank, but has fallen dramatically since then. In 2013, Penfolds’ U.S. volume was down 48% to 190,000 cases. But the Penfolds luxury tier is now showing strong growth, the company told SND, with year-on-year progress running at double digit rates.
The U.S. volume decline for Penfolds over the past few years coincided with the brand’s boom in China. Now, with the Chinese government’s austerity campaign hindering high-end brands, upscale players are again training their focus on the U.S. In its fiscal year ended in June, Treasury’s Asia volume was down 8% to 1.3 million cases, although the company said China depletions returned to modest growth by year-end as a consumer-led wine market began to replace the government-driven consumption targeted by the regime.
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