Rosemount keeps cork on prices despite high dollar
The winemaker will instead rely on fresh marketing initiatives including a new sponsorship deal with the AFL and on-premise promotions to dominate its category.
Angus McPherson managing director of Rosemount, which is owned by the world's biggest pure-play wine company Treasury Wine Estates, said Diamond Label was priced at $10 to $15 a bottle and that fitted perfectly with its strategy.
"TWE wants to win in what we call 'masstige' [prestige for the masses] and luxury wines and Rosemount Diamond Label is core in masstige."
TWE boss David Dearie has pushed through a masstige strategy since the company was split off from Foster's two years ago, focusing on quality wines that are more expensive than mass market wines but also more luxurious.
For some of TWE's portfolio, this has seen a lift in prices or an exit from unprofitable markets.
The world's second-largest alcoholic-beverage company, Pernod Ricard, plans to lift prices for its Australian flagship label Jacob's Creek in the US after a similar price hike in Britain.
"I don't think we are raising our prices," Mr McPherson said, "because I think we are in a really good price point where consumers are willing to pay for brands.
"It's above that $10 per bottle segment so I think Rosemount is in a really good position where we are producing world class wines."
Robert Parker, founder of the influential publication Wine Advocate, recently gave 28 TWE wines a score of 90 points or above, of which four were Rosemount.
Mr McPherson declined to comment if a decision to keep Rosemount prices stable in North America despite the cost pressures of the high dollar was hurting margins.
"Rosemount Diamond Label still sits between the $US8 and $US10 price point in America, it always has, and what we do is make sure we maintain the quality in the bottle."
It certainly isn't hurting sales as Rosemount volumes in the US rose 9.1 per cent for the first half of 2012-13.
Mr McPherson said Rosemount would focus on communicating its brand strategy to consumers, and getting the wine in the hands of its drinkers through a range of new marketing platforms.
He said a deal first inked in 2012 for Rosemount to be the AFL's official wine partner has been renewed.
Frequently Asked Questions about this Article…
Rosemount intends to keep Diamond Label steady in price — it’s positioned around $10–$15 a bottle (and typically sits between US$8 and US$10 in America) rather than lift prices despite currency pressures.
Rather than raise retail prices, Rosemount is leaning on fresh marketing initiatives — including on‑premise promotions, new marketing platforms and a renewed AFL sponsorship deal — to defend market share in its export markets.
Rosemount is owned by Treasury Wine Estates (TWE). TWE’s 'masstige' strategy, championed by CEO David Dearie since the split from Foster’s, focuses on higher‑quality wines that sit above mass‑market price points but offer accessible luxury to a broad consumer base.
No — while Pernod Ricard has said it will lift prices for Jacob’s Creek in the US (after a similar increase in Britain), Rosemount has chosen not to raise prices and will rely on marketing and promotions instead.
Keeping prices stable does not appear to have hurt demand — Rosemount volumes in the US rose 9.1% for the first half of 2012‑13, according to the article.
Yes. Wine critic Robert Parker’s Wine Advocate recently gave 28 TWE wines scores of 90 points or above, and four of those high‑scoring wines were Rosemount labels — a notable endorsement of quality.
Rosemount’s managing director Angus McPherson declined to comment on whether the decision to keep prices stable in North America despite a high dollar was hurting margins.
Rosemount plans to communicate its brand strategy more strongly and get wine into consumers’ hands through a range of new marketing platforms, on‑premise promotions and by renewing its role as the AFL’s official wine partner (a deal first inked in 2012).
Call 1300 880 160
Start a chat
Schedule a call
