TWE's French label will be on shelves by November

Treasury Wine Estates (TWE) has revealed its new French wine label will be on the shelves in China and Japan by November.

TWE revealed its plans to ""to disrupt the traditional ‘old world’ mould of the French category" at its inaugural Investor Day in Napa, California, last week.  

It has yet to reveal the portfolio's name, but has already produced labels and applied for trademarks. The brand will be sold through restaurants, bars and stores. 

CEO Michael Clarke told investors the portfolio would immediately add to margins as it was being developed under a "capital lite" model that doesn't require TWE to invest in chateau or winemaking infrastructure - the company will outsource all its grapes.

As The Australian notes: "It’s a wine planned in Melbourne, executed from Napa, grown in France and shipped to north Asia."

“In Asia, ‘French’ is a trust mark. Most consumers don’t always know the name of a particular chateau, unless it is really well known, but French is a trust mark and we are tapping into that,’’ Clarke said.

While the French portfolio has been created with North Asia in mind, it will be released globally.  

Clarke notes: “French wine is now an exciting new addition to our portfolio offering, and will be one of our important launches in F18. While the French category is very established globally and regarded as a quality trustmark, particularly in North Asia, we will bring a ‘new world’ mentality to marketing and selling this wine.”

TWE is the largest foreign wine importer in China, with Australia seeing its market share grow from about 18% in 2014 to 25% last year, mainly due to the success of TWE's premium brands such as Penfolds and Wolf Blass.

France is currently the No.1 importer of wine into China, with a 35% market share.

TWE's French portfolio will include Bordeaux, Burgundy and Châteauneuf du Pape reds, Rosé from Provence and Champagne. It will closely mirror the Penfolds model, with the range having an "icon" wine priced at $279 a bottle, a "luxury tier showcasing the best of France" priced at $115 a bottle, and an "accessible luxury tier showcasing the best of France" priced at $58 a bottle.

“We have taken a very disciplined approach to fixing and growing our business models and brand portfolios, but our journey is far from over," Clarke said.

"We’ve set the business up for long-term, sustainable success, while continuing to preserve the scarcity and value of our wines globally. The new French portfolio plays an important role in our strategy, as we look forward to continuing to deliver value for our shareholders.”