Hardys owners splash out $15m to revitalise brand
An updated design and branding for Hardys, which is the biggest selling wine in Britain by volume and value, will be matched by greater investment in ahardvertising and retail incentives as well as the launch of a new mid-tier wine brand, to be called William Hardy.
It will feed into a wider strategy for Hardys to forge greater alignment between the brands' sub-labels, which range up and down the price scale from the popular and affordable Nottage Hill, to the more premium and collectable label Thomas Hardy Cabernet.
Accolade Wines' general manager Australia and New Zealand, Michael East, said the project was intended to leverage the history of Hardys to place it before a greater number of drinkers and across more market segments.
"The name Hardys carries heritage and quality with it, and our mission is to reinforce these aspects whilst placing the quality of our wines at the forefront of our offer."
The brand investment covers global above-the-line advertising spend, below-the-line brand support and captures the investment in consumer research leading to the redesign, Mr East said.
Accolade Wines would also maintain its investment in the Australian market but saw opportunities to move British consumers up the brand ladder and into premium brands within the portfolio.
The new William Hardy sub-brand was unveiled to the wine press last week and will celebrate Thomas Hardy's fourth generation descendant Bill Hardy's more than 40 years with the company.
The new William Hardy label is expected to sell for about $20, sitting in the "masstige" segment and helping to shift Hardys' centre of gravity up towards more premium pricing.
Traditionally Hardys has been a bigger player in the sub-$15-a-bottle sector and while it also had a range of wines at the luxury end it has lacked punching power in the $15-$30 bracket.
Accolade Wines is also building its presence in the US, the world's biggest wine-consuming market by total volume, and Asia. "US consumers are switching to wine from other alcoholic beverages and we see an opportunity there as the American consumer grows more sophisticated," Mr East said.
The winemaker will push the Hardys brand in Asia as well.
In 2011 CHAMP Private Equity shelled out $290 million to buy a controlling 80 per cent stake in the Australian and European wine brands of struggling beverage group Constellation Wines, renaming the acquired business Accolade Wines.
Its portfolio includes Hardys as well as Houghton, Leasingham, Tintara, Banrock Station, Berri, Stanley and Omni.
In mid 2012, Accolade paid $40 million to buy Californian wines Geyser Peak, Atlas Peak and XYZin from failed US winemaker Ascentia.
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They committed $15 million to refresh the flagship Hardys brand — funding an updated design and branding, greater advertising, retail incentives and the launch of a new mid‑tier sub‑brand called William Hardy to strengthen Hardys' position in Britain and expand into Asia and North America.
William Hardy is a new 'masstige' mid‑tier label (expected to sell for about $20) designed to move consumers up the brand ladder into more premium pricing, and to celebrate Bill Hardy, a fourth‑generation descendant with 40+ years at the company.
The $15 million investment covers an updated design and branding, global above‑the‑line advertising, below‑the‑line brand support, retail incentives and consumer research that guided the redesign and new sub‑brand launch.
Accolade plans to bolster Hardys' dominance in Britain while expanding its presence in Asia and the US — the world’s largest wine market by volume — and will continue investing in the Australian market.
Traditionally a strong player in the sub‑$15 sector, Hardys lacked punch in the $15–$30 bracket. William Hardy, priced around $20, is intended to shift the brand's centre of gravity toward more premium pricing within that masstige segment.
CHAMP Private Equity bought an 80% controlling stake in the Australian and European wine assets of Constellation Wines for $290 million in 2011, renaming the business Accolade Wines. Its portfolio includes Hardys, Houghton, Leasingham, Tintara, Banrock Station, Berri, Stanley and Omni, and in mid‑2012 Accolade paid $40 million for Californian labels Geyser Peak, Atlas Peak and XYZin.
According to Michael East, Accolade's GM for Australia and New Zealand, the company aims to use Hardys' 160‑year heritage to reinforce perceptions of quality and heritage while placing the wine quality at the forefront to reach more drinkers across more market segments.
The $15 million refresh and launch of a mid‑tier label indicate Accolade is pursuing premiumisation and global growth — particularly in Britain, the US and Asia — by investing in branding, marketing and portfolio alignment to capture higher‑value segments of the market.
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