While he is perhaps better known for 'sipping on gin and juice', rapper Snoop Dogg is providing a boost to Treasury Wine Estates' 19 Crimes brand, which sold more than one million cases in the EMEA region in the company's most recent financial year.
Snoop Dogg is the brand ambassador of the 19 Crimes brand, with the rapper backing TWE's Cali Red and Cali Rosé brands – an association that has exceeded all expectations at the Penfolds owner, according to Tim Ford, the Australian drinks group's chief executive.
"We've got a second global brand on our hands," Ford told an analyst call to coincide with the group's full-year results. "Penfolds is a global brand, but clearly 19 Crimes has now become that. [...] It's about a 5-million case business for us globally now."
The group sees the 19 Crimes brand as a springboard for innovation, and offering a different means of engaging with consumers, which to date has proven successful – the wine labels feature augmented reality, while the branding itself (which features a variety of notorious convicts that 'helped to build Australia') is atypical of the wine segment.
"Clearly it’s a non-traditional one way of connecting with consumers, and we certainly feel like we've learned a hell of a lot as we've built this in the United States," Ford added.
Full-Year Performance
In the full year to June 30, Treasury Wines reported a 1.8% increase in net profit, to A$250 million, however net sales revenue was down 3.0% on a reported basis (+1.3% at constant currency levels).
The company delivered 'strong growth' in the $10 to $30 'Premium' market in the Americas region, as well as in EMEA and Australia/New Zealand, led by the 19 Crimes, Pepperjack, Squealing Pig, Beringer Brothers and Matua brands.
19 Crimes was the star performer in its US division, which reported a 23% increase in EBITS (to A$168.3 million) during the full-year period. It said that 19 Crimes Cali Red was the number one growth brand in its category during the year, with the launch of 19 Crimes Cali Rose in March 'resonating strongly with consumers'.
In EMEA, where the group saw increased at-home consumption, it added that long-term value growth was being driven by premiumisation, with the group's portfolio of brands 'well positioned to continue taking advantage of this trend'. EMEA performance was also impacted by one-off Brexit-related costs.
Experience-Led Marketing
"The shift to a consumer and experience-led marketing model has been a real highlight for TWE, becoming a key driver of momentum across our brand portfolio," Ford explained during the analyst call.
"With foundations based on data and insights, we have brought bold innovation to our portfolio. We've utilised collaborations and partnerships with celebrities and key opinion leaders and focused on digital engagement to drive appeal across a broader and more diverse consumer base."
On a global level, company's performance was achieved despite the ongoing pandemic disruption, as well as 'significantly reduced shipments' to mainland China following the introduction of import duties on Australian wine, it said.
In July, the company transitioned to a new operating model under three brand-led portfolio divisions – Penfolds, Treasury Premium Brands and Treasury Americas – with which it hopes to 'maximise the benefits of separate focus across its diverse brand portfolios and leverage the scale of its global business model', it said.
19 Crimes Extension
The latest edition in the 19 Crimes series, Snoop Cali Rosé, was launched in March, on the back of the rollout of Snoop Cali Red in 2020 – one of the most successful wine innovations of last year.
Allied to that launch was the introduction of an augmented reality experience, 'Ask The Doggfather', which gave consumers the chance to speak to Snoop Dogg directly.
“We did it big with 19 Crimes Cali Red, so you know we had to do it again – and this time, I was thinking pink," the rapper commented on the launch of the new rosé variant. "I can’t wait for everyone to sip on my Snoop Cali Rosé and bring those fresh feels from spring into summer and beyond. I hope when you open a bottle of this wine you take a little mind trip to my Cali home."
© 2021 European Supermarket Magazine – your source for the latest Drinks news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
