The set up and global launch
           of an international wine brand



Golden Kaan - a wine from South Africa


       ...
The Racke Company
Background:


             A German based family owned company,
                      established in 1855

A leading marke...
The Racke Group

               - Data -


                          fiscal year
                          2005/2006

1. t...
SUBSIDIARIES IN EUROPE
                 In Europe we are distributing our brands and
                    partner brands wi...
Racke Brand Portfolio / basic tier
Key Portfolio: International & National Distribution Brands
Industry Role Model: Joint-Venture Brands
Successful global launch of a
        wine brand:


        Golden Kaan
Positioning Strategies grid (Rabobank research, 2006)

               Focus: content
               Niche distinction
    ...
Understanding the wine consumer


The key issue to marketing our products and developing new
wine brands is our knowledge ...
Example: German target consumers for
                  GOLDEN KAAN
              (Racke Clusters 2004)

The brand-oriented...
Example: UK target consumers for
                     GOLDEN KAAN
       (Wine Intelligence 2005 & Waverly 2004)

The main...
Our development process for new wine brands


                              6 Project Steps
                             f...
consumer´s mindset of South Africa
development of the brand Golden Kaan
Intro_gk_neu.exe
- Golden Kaan Classic Range -
DISTRIBUTION NETWORK
                                                           GOLDEN KAAN
                              ...
Since the launch more than

10 mio bottles /
830,000 cs.

have been sold
world wide.


Represented in 28 countries.
BreakE...
Thank you!


    Marian Kopp
    m.kopp@racke.de


 www.golden-kaan.com
www.espiritu-de-chile.com
Global Wine Marketing / Speech by Mr. Marian Kopp Sept. 2006
Global Wine Marketing / Speech by Mr. Marian Kopp Sept. 2006
Global Wine Marketing / Speech by Mr. Marian Kopp Sept. 2006
Global Wine Marketing / Speech by Mr. Marian Kopp Sept. 2006
Global Wine Marketing / Speech by Mr. Marian Kopp Sept. 2006
Global Wine Marketing / Speech by Mr. Marian Kopp Sept. 2006
Global Wine Marketing / Speech by Mr. Marian Kopp Sept. 2006
Global Wine Marketing / Speech by Mr. Marian Kopp Sept. 2006
Global Wine Marketing / Speech by Mr. Marian Kopp Sept. 2006
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Global Wine Marketing / Speech by Mr. Marian Kopp Sept. 2006

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Speech / Presennation by Marian Kopp at Napa Financial Symposium September 2006

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Global Wine Marketing / Speech by Mr. Marian Kopp Sept. 2006

  1. 1. The set up and global launch of an international wine brand Golden Kaan - a wine from South Africa - Marian Kopp - Executive Board Member Racke Group, CEO Golden Kaan Ltd. Napa, September 27, 2006
  2. 2. The Racke Company
  3. 3. Background: A German based family owned company, established in 1855 A leading marketer of wine brands in Europe, and beyond. Blanchet as No.1 brand in the German retail (turnover, 01-06/06). Development of outstanding global wine innovations, such as Vitae and Golden Kaan. European distribution rights for numerous successful global brands, such as Yellow Tail, Codorniu, GIV, Castel.
  4. 4. The Racke Group - Data - fiscal year 2005/2006 1. turnover 133 mio. / $ 173 Mio. 2. sales 4 mio cases
  5. 5. SUBSIDIARIES IN EUROPE In Europe we are distributing our brands and partner brands with strong sales forces. CZECH REPUBLIC POLAND THE NEDERLANDS
  6. 6. Racke Brand Portfolio / basic tier
  7. 7. Key Portfolio: International & National Distribution Brands
  8. 8. Industry Role Model: Joint-Venture Brands
  9. 9. Successful global launch of a wine brand: Golden Kaan
  10. 10. Positioning Strategies grid (Rabobank research, 2006) Focus: content Niche distinction Focus: consumer Superior image + quality Brand (consistent Perceived Distribution on-trade, specialists quality) Innovation Value Distribution (Service) retailers Niche High strategy High Perceived quot;Outpacingquot; Brand strategy Value Competitor Competitor Cost Focus: process Low quot;Confusedquot; leader- Low Delivered Competitor ship Cost Competitor Cost control Scale Distribution (discount) retailers High Low Delivered Costs
  11. 11. Understanding the wine consumer The key issue to marketing our products and developing new wine brands is our knowledge of the consumer. Knowing not only their demography but also their habits, attitudes and demands is crucial to develop brands exactly matching the consumers needs. Therefore consumer analyses are conducted on a regular basis to identify consumer clusters and their characteristics. Existing international consumer segmentations for wine, e.g.: Racke 2004; updated annually Constellation, USA 2004 Waverly, UK 2004 Wine Intelligence, UK / USA 2005
  12. 12. Example: German target consumers for GOLDEN KAAN (Racke Clusters 2004) The brand-oriented Wine consumption is of high importance and has to offer emotional benefits Country affinity: New World Wines Very high brand and off-trade orientation Even male-female split, mainly 20-39 years Typical off-trade spend: 2-4 The ambitious junior Wine is part of one s life(style) Country affinity: Italy, New World Wines Rather male Typical off-trade spend: 43% 4+ Wine connoisseurship under development The connoisseur Wine lover and connoisseur with above average wine knowledge and usage Preference of high-class wines of all origins Rather male Typical off-trade spend: 89% 3+
  13. 13. Example: UK target consumers for GOLDEN KAAN (Wine Intelligence 2005 & Waverly 2004) The mainstream at-homers Chiefly drink wine at home (on their own or with friends) Wine frequency: 3+ times per week Country affinity: France, Australia, Chile, South Africa High wine involvement Even male-female split, mainly 35-64 years Typical off-trade spend: £4-5 The weekly treaters Drink wine once or twice a week (usually at home) Country affinity: Australia, Italy, Germany Moderate wine involvement 58% female, more likely to be young (18-34) and single Typical off-trade spend: £5+ The entertainers Occasions for wine drinking: socialising, eating with friends Adventurous with all countries Highly brand conscious 62% female, aged 25-49 Wine spend: £3-6 Regularly buys on promotion, trades up on special occasions
  14. 14. Our development process for new wine brands 6 Project Steps from Project Start till International Market Presence Time frame 1.5 2 years Step 1 Basic principles market research Step 2 Development of concept ideas and first market research Revision of winner concepts Step 3 Final concept testing to check commercial viability Step 4 Decision on launch and launch preparations International launch Step 5 Appointment of the right partners in each key market Step 6 Adapting the brand to optimise its chances and success in its key markets
  15. 15. consumer´s mindset of South Africa
  16. 16. development of the brand Golden Kaan
  17. 17. Intro_gk_neu.exe
  18. 18. - Golden Kaan Classic Range -
  19. 19. DISTRIBUTION NETWORK GOLDEN KAAN GOLDEN KAAN LTD. / /LLC. LTD. LLC. AMERICA EUROPE AFRICA ASIA AMERICA EUROPE AFRICA ASIA USA KWV Japan: Kokobu USA KWV Japan: Kokobu UK GER NL NOR/SWE INTERNATIONAL UK GER NL NOR/SWE INTERNATIONAL South Carolina Arizona Pennsylvania Florida New Mexico California Nevada Colorado Hawaii RUSSIA Kentucky Illinois RUSSIA NEW JERSEY: NEW YORK: TEXAS: ALIANTA ALIANTA GROUP GROUP FINLAND: Maxxium CANADA DENMARK: Strandgaarden CANADA AUSTRIA: Kattus CORBY SWITZERLAND: Denner Distilleries: ISLAND: K. Karlson DUTY FREE PERNOD DUTY FREE IRELAND: BWG Ltd: RICARD GROUP POLAND / R: Racke GEBR. GEBR. HEINEMANN HEINEMANN
  20. 20. Since the launch more than 10 mio bottles / 830,000 cs. have been sold world wide. Represented in 28 countries. BreakEven in year 3.
  21. 21. Thank you! Marian Kopp m.kopp@racke.de www.golden-kaan.com www.espiritu-de-chile.com

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