Treasury Wine's push into the US market hasn't been as smooth as its strategy to sell more wines into Asia.
👉 Background: Treasury Wine Estates is the company behind some of the largest wine brands in Australia. We’re talking everything from top-notch wines like Penfolds and Beringer to others like Wolf Blass, Lindemans and 19 Crimes.
👉 What happened: Previously Treasury Wine sold a large chunk of its premium wines to China - but it had to shift away from China due to the enormous tariffs. Its new strategy to sell more wines into Asia (excluding China) has worked a treat. Net profit was up over 72% for the past 6 months.
👉 What else: But its push into the US market hasn’t been as smooth. The growth on its cheaper wines, like 19Crimes, didn’t grow as fast as planned
That’s the wine with Snoop Doggy Dog and Martha Stewart as ambassadors.
💡 Avocados and brand ambassadors have a lot in common: they can both be expensive and they can both go bad.. pretty quickly.
💡When a brand relies on a few ambassadors to promote their product, they run the risk of becoming overly dependent on those individuals and their popularity. This can be pretty problematic if that celebrity is in a scandal (ahem Kanye).. But even just when their popularity wanes.
💡It's a good reminder that while celebrity endorsements can be helpful, brands need to have a solid product, quality distribution and effective marketing strategies in place.
Sign up for Flux and join 100,000 members of the Flux family
