Oyster Bay owner Delegat wants to increase its sales of Barossa Valley red wines by more than 30 times
THE company behind the world-beating Oyster Bay Sauvignon Blanc aims to boost its production of Barossa Valley reds more than 30-fold in the next five years.
THE company behind the world-beating Oyster Bay Sauvignon Blanc aims to boost its production of Barossa Valley reds more than 30-fold in the next five years.
New Zealand company Delegat bought Barossa Valley Estate (BVE) for $24.7 million in April 2013, picking up a 5000-tonne winery, a 41ha vineyard in the Barossa Valley, grape grower contracts and inventory.
The company has since been investing in the Barossa, with a $1 million cellar door refurbishment under way and investments in new vineyards.
Delegat’s annual report, released in January, says the company wants to grow its sales from the Barossa from 8000 cases in 2014, to 260,000 by 2019.
The company will be focusing on Barossa stalwarts shiraz, cabernet sauvignon and grenache shiraz mourvèdre, and will be trying to emulate the runaway success it has had with Oyster Bay Sauvignon Blanc, which dominates white wine sales in Australia.
Globally the company sells more than two million cases of Oyster Bay wines a year.
In anticipation of its global marketing assault, the BVE reds have been rebranded in recent months.
“A significant focus in the year in review has been on the development and launch
of the Barossa Valley Estate brand and range of super premium wines,’’ the company’s annual report says.
“The launch of Barossa Valley Estate to key markets around the world subsequent to year-end, marks a significant step on our journey to building one of the world’s leading super premium
wine companies.’’
Managing director Graeme Lord said the global distribution pathways forged by Oyster Bay would be used to launch BVE to the world.
“Our main focus since the acquisition has been moving on vineyard acquisitions, the cellar door development and building our team at Barossa Valley Estate,’’ Mr Lord said.
“Thirdly ... working on the branding proposition and ensuring that we’ve got the contemporary wine styles that will appeal to global consumers.
“We really wanted to to create a very strong, global, super-premium red wine brand over the long term. That’s a goal for us as a business.
“And we wanted to represent key varietals that the Barossa does exceptionally well.’’
Mr Lord said the varietals selected were consistently high quality when sourced from the Barossa, and when well-made would appeal to a large number of people.
“We’ve developed packaging that really brings the Barossa Estate brand to the heart of the product.’’
Mr Lord said the brand was launched in late 2014 in Australia and New Zealand and this year would be launched in the UK, Ireland, the US and Canada and a range of markets in Asia.
Mr Lord said BVE’s wine styles were “highly complementary” to the Oyster Valley brands which were cool climate wines.
The new BVE wines will retail for $20 and up.
BVE will also continue to make its existing super premium range including the E&E Black Pepper Shiraz.
The new cellar door, which will open in about six months’ time, will not include a restaurant but will focus on a wine experience.
Overall Delegat is planning to grow sales from 2,031,000 cases to 3,094,000 cases over the
next five years.
“This planned growth will be primarily driven through sales growth in North America and development of the Barossa Valley Estate brand,’’ the company said.
“In the Australia, New Zealand and Asia Pacific region, sales volume is projected to
grow by 44 per cent to 964,000 cases by 2019.
“Growth in Asia and from Barossa Valley Estate underpins projected growth in the region.
“Since year-end the Group has established an in-market sales subsidiary in Japan. The Delegat Japan team will work alongside the appointed distributor to establish and grow the Group’s brands in the market. Also, in the 2015 year, the Group will establish an in-market sales operation in China.’’
Mr Lord said the company aimed to source its wines from an even mix of owned vineyards and contract growers over the long term.