A very successful wine transition
WINES FROM Sutter Home first appeared on the UK market in the 1970s and were one of the first branded ranges from the Napa Valley to be imported to these shores.
Already known as a major label, it quickly achieved excellent distribution in the UK multiple grocer chains. But this is far removed from where the brand finds itself today.
In September 2002, Trinchero Family Estates - the producer behind Sutter Home (and several other wines such as Ménage à Trois, Seaglass and Jargon) - announced that it intended to move the handling of its wines in the UK market to PLB Group.
This coincided with the launch of PLB's wholesale division: a team entirely focused on supplying wines to the on-trade through a network of wholesalers, regional brewers, cash & carries and also independent specialist wine merchants.
PLB viewed Sutter Home as an integral part of this development, and slowly the focus of the brand switched from high-street retailers to the on-trade.
Over the past six years, the brand has been slowly withdrawn from supermarket shelves and its place has been taken by some of the country's best-selling wines. Contrary to popular perception, this has not actually harmed sales of Sutter Home at all - far from it!
So why is that? The brand has two factors in its favour.
Number one: it is from California and because customers recognise California as a wine-producing region, on-trade operators want to have wines from there on their list.
Number two: Sutter Home's White Zinfandel - a blush wine completely in line with current market trends. In fact, as Sutter Home was the first winery in California to produce a blush (very light pink) wine from the red Zinfandel grape, you could definitely say that the Trincheros have been at the forefront of the development of one of the UK's favourite wine styles.
Sutter Home has proven that a well-known wine brand can make that difficult transition from the supermarket shelf onto the wine lists of the on-trade.
Switch of emphasis
As one of the first Californian brands to arrive here, it has become well known and can now be said to have a heritage in the UK.
The brand will never be seen with a heavy discount in a multiple grocer chain, meaning the on-trade operator can price the wines knowing they will never hear cries from their customers of "but I can get this three for a tenner at my local supermarket".
This switch of emphasis for Sutter Home has resulted in sales of the brand in 2007-2008, through on-trade channels and independent specialist wine merchants, exceeding those of when the brand was listed by every major supermarket. Brands are important in the on-trade as they give both the licensee and the consumer confidence in their choice.
The trick is to achieve a balance where the brand is well-known, but brand equity is protected through careful placement and the right style of promotion.
And this is where Sutter Home sits today.
Richard Volpi is joint wholesale division sales manager at beers, wines and spirits importer PLB
