During my recent trip to France as part of the Commanderie de Bordeaux I was briefed on a strategy put together by the Bordeaux wine industry to promote and strengthen the Bordeaux industry.
Challenges facing the Bordeaux industry stem from the global recession and weakened Western economies as well as a damaged brand with respect quality standards, disconnects between price and perceived value, and counterfeit products. All these combined to leave many industry operators in a dire situation.
In a lesson to other wine industries and regions facing challenges, all the industry players got together to find a solution. The plan, which emerged after 12 months of research and planning, includes the following key components:
— Reposition the Bordeaux wine brand as the “most beautiful wines in the world” and target three distinct consumer profile from trendy consumers to high status consumers. The brand repositioning should also highlight the quality of the wine and fight against counterfeit products.
— Improve the sales strategy through limiting bulk wine price volatility; generalise partnerships with major supermarkets and on-trade accounts; promote responsible wine drinking; develop wine tourisms; and facilitate the development of Bordeaux wine bars in international markets.
— Improve the administration of the industry through improved market regulation; only focus on key strategic projects; relook internal industry communications; and conclude an agreement to control industry operators practicing abnormally low prices.
— Improve the operation competitiveness of the members through the consolidation of wine cooperatives; strengthen the production competitiveness of wine cooperatives; develop sustainable development practices; and protect production potential by defending AOC areas.
Emergency measures proposed by the plan include helping struggling businesses; develop the practice of buying and selling grapes and encourage the development of sales activities.