Treasury Wine Estates (TWE) tells TRBusiness in an exclusive interview that one of the company’s top priorities this year will be to gain an even greater understanding of its consumers to ensure its global plans for the coming years are underpinned by ‘compelling insights’.

One source of such insights will be the company’s third Travel Retail Study which was conducted last year.

“This enables us to lead and drive category growth through initiatives that will drive footfall into the wine category,” Simon Carter, General Manager Global Travel, Treasury Wine Estates (TWE), tells TRBusiness.

“We also work closely with our retail partners to ensure we can stay up-to-date with key shopper trends and we share our insights to cross pollinate ideas and better leverage opportunities.”

CONVERTING WINE DRINKERS ON THE DOMESTIC MARKET

Interestingly, Carter considers the whole liquor category as competition for TWE in travel retail and says that the company strives to ensure liquor allowances are ‘maximised’. He also says the company is focused on converting a huge base of wine consumers on the domestic market into travel retail shoppers.

Simon Carter, General Manger Global Travel, Treasury Wine Estates (TWE).

“We are always aiming to deliver new ideas and concepts to ensure our wines are the leading choice,” says Carter. “We are highly committed to making wine a travel retail destination and focused on converting the strong domestic purchase behaviour into travel retail.”

One of the ways TWE is hoping to entice more travellers into the wine sections of DF&TR stores is through high profile promotions. In collaboration with Heinemann, TWE recently unveiled a global-first installation for Penfolds Grange in travel retail at Sydney International Airport.

The installation features a Penfolds Tasting Bar alongside 98 bottles of flagship wine Penfolds Grange, in a dramatic backdrop that forms the world’s largest public display of Penfolds Grange 2014.

ASIA EXPANSION THROUGH CRUISE CHANNEL

As is the case for many suppliers in travel retail, TWE is focused on increasing its presence and exposure in Asia. TWE is clearly interested in expanding in the region’s airports, but believes opportunities in cruise are equally rich.

“In Asia, Penfolds Wine Vaults can be found onboard Dream Cruises’ Genting Dream (based in Singapore) and the World Dream (based in Hong Kong) where travellers can visit the wine vault and select a special back vintage or limited edition Penfolds wine to enjoy with their meal.

“The Genting Dream in Singapore also houses the ultra-rare Penfolds Aevum Imperial Service Ritual; a distinctive vessel specially handcrafted by legendary European glass and crystal house Saint-Louis and one of only five in the world.”

TWE says it had a positive year in global travel retail last year, but believes there is always more work to do – with key retailers, cruise and airlines – to expand the availability and visibility of wine.

“TWE has a strong global portfolio, and we will continue to drive distribution and invest in initiatives to make wine a destination in store, driving greater engagement with shoppers to drive sales and make wine a travel retail destination,” says Carter.

The world’s largest public display of Penfolds Grange 2014 at Sydney Airport.

‘REMOVING THE TAIL OF NON-PERFORMING WINES’

“While overwhelming choices can prevent sales, we have simplified the wine range to improve shop-ability and improve shopper conversion, by removing the tail of non-performing wines. This will enable the stronger selling brands to have higher stock weight, shelf visibility and improve stock turn.”

Carter says that there genuinely is still headroom for growth of wine in travel retail and as ‘the category leaders’, TWE will continue to explore new ways to make wine a travel retail destination instore, creating new and exciting ways to delight travellers.

“We’re currently working on plans to launch new premium products in DF&TR, which include Penfolds Champagne and our new Italian wine brand Cavaliere d’Oro,” confirms Carter.

“These wines will genuinely excite travellers and we’re working with our strategic retail partners on plans to showcase these.”

This year, Carter and his global travel team remain positive in the face of some potential threats to the industry – slowdown in Chinese economy affecting travellers’ propensity to spend; the outcomes of Brexit; potential introduction of new punishing allowance/branding or marketing restrictions on the liquor category in some regions – and only remain excited for the future.

TWE PARTNERS DFS FOR UNIQUE MAGILL ESTATE EXPERIENCE

“I’m excited for the future. There continue to be opportunities to execute best-in-class premium brand presence in airports to make wine a true destination and improve traveller category penetration.

“We want to lead the wine category transformation in presenting our brands on the global stage though innovative consumer experiences, best practice execution and a diversified portfolio of travel retail exclusives & COO wines.”

Regarding unique consumer experiences, TWE recently unveiled a luxury wine travel experience at the 2019 DFS Masters of Wines and Spirits event in Singapore (22-24 March). For the first time, attendees at this year’s event were able to purchase a four-day, three-night bespoke travel itinerary that includes a dinner at the Penfolds Magill Estate Restaurant hosted by Penfolds Chief Winemaker, Peter Gago, in South Australia.

Penfolds Magill Estate in Adelaide, South Australia.

In addition to the travel experience, Treasury Wine Estates also showcased the Penfolds g3; the six-litre Penfolds Bin 707 Imperial in a one-of-a-kind hand-crafted gift-box, and a special three-vintage Beringer Private Reserve Cabernet Sauvignon Collection.

“We are extremely honoured to partner with DFS at this premier event to highlight truly unique and much sought-after luxury wines in our portfolio,” says Carter.

“We understand that luxury travellers are constantly seeking special experiences, and as such, we’ve unveiled the Penfolds Magill Estate travel experience for the first time.

“We are also highlighting some of our most popular wines for luxury travellers – incredibly collectable wines. We strongly believe that working with a quality and trusted partner, such as DFS, truly allows us to leverage on each other’s strengths to further elevate the travel retail sector.”