This morning, Naked Wines released a report that, by way of surveying 1,006 Australian wine drinkers, outlined key consumer attitudes towards wine. According to the Ideal Conditions report, 65% of wine drinkers said they’d buy more wine if they knew the retailer supported independent winemakers, 63% would buy more if they knew the winemakers were getting a fair deal, and 43% said unclear information about a wine’s origin is a big red flag.
To raise awareness about these findings, Naked Wines launched a disruptive public campaign - which includes placing billboards outside their direct competitors - to encourage consumers to “vote with their feet.”
Paul Connell, Managing Director, said “enough is enough. Nothing would leave a worse taste in the mouth than if you’ve paid too much for a wine that its maker was short-changed to produce. Now is the time for fairer conditions for all.”
As it stands, Naked Wines is one of Australia’s largest direct-to-consumer wine retailers, selling wines from over 50 Australian and New Zealand independent winemakers at prices they claim are on average 30% lower than the bottle shop shelf equivalent. In the past, criticism has been made regarding the often-exclusive nature of the portfolio, often making it hard for consumers to make direct price comparisons.
Drinks Trade reached out to Australia’s two largest liquor retailers - collectively boasting 55% of Australia’s market share - to hear their thoughts about their relationships with suppliers.
“Across Endeavour Group, we proudly work with more than 2,000 trade suppliers through Dan Murphy’s, BWS and ALH Hotels,” said a spokesperson for Endeavour Group.
“These partnerships are the cornerstone of our business, allowing us to consistently deliver exceptional wine and drinks to our customers while supporting the people behind the craft.”
Similarly, a spokesperson for Coles Liquor said: “We partner with more than 450 wine suppliers, with the vast majority of them small and medium in size. We understand that the Australian wine industry has faced challenges in recent times, but we are working hard to ensure our suppliers can thrive now and into the future.”
According to the groups, 95% of Coles Liquor wine suppliers are small and medium sized, while 90% of Endeavour’s overall supplier base is from smaller producers, double what it was in 2018.
Paul Connell explained that Naked Wines’ campaign was “a clear message to retailers [to] do the right thing.
“We’re taking a stand to highlight what ideal conditions for winemakers really means and, more importantly, to show what Australian consumers want,” he continued.
In a statement issued to media, Naked Wines says its business model allows members to bypass the traditional smoke and mirrors to directly connect with and support over 50 Australian and New Zealand independent winemakers, thus answering the consumer queries outlined in its Ideal Conditions YouGov report.
When asked what they offer their suppliers, Coles Liquor referred to its supplier portal that provides greater transparency on issues such as cost adjustments and Endeavour Group referred to its two recently launched supplier resource initiatives.
“We work closely with our suppliers to ensure fair and sustainable practices that benefit both producers and customers,” said a spokesperson for Endeavour Group.
“Our long-standing partnerships with winemakers, both locally and globally, are built on mutual respect, transparency, and shared values of quality craftsmanship.”
The Naked Wines Campaign follows shortly behind the ACCC taking Coles and Woolworths to court over its market power and entry barriers, which is entirely unrelated to, and separate from, the Endeavour Group and Coles Liquor businesses.
The campaign also follows behind Australian Grape & Wine's March submission to the Senate that concluded “there is strong justification for further regulation to address issues related to wine retail.
“Strengthened competition laws or policies would have potential to improve competition through resolving information asymmetries, improving transparency for both consumers and producers, addressing creeping acquisitions, and ensuring that wine producers compete on a level playing field with the major retailers they have little choice but to supply to,” read the submission.
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