Jacobs Creek re-Branding of some Orlando wines

Red Bigot · Post by **Red Bigot** » Sun Sep 11, 2005 12:01 pm

Looks like the rumours are true, the St Hugo Coonawarra Cabernet and Centenary Hill Barossa Shiraz are being rebranded as Jacob's Creek (along with some Orlando whites). The St Hugo seems to have a slight price increase and the Centenary Hill a slight drop to match the St Hugo rrp at around $40.

If the article by Chris Shanahan in the Canberra Time Relax magazine is correct, the current Jacob's Creek Limited release Shiraz-Cabernet 1999 is being rebranded as the "Johann" and bumped up to $100 rrp. An interesting marketing move as it's been released under it's old label a long time and isn't exactly jumping off the shelves, despite it's undoubted quality and is currently selling for as low as $36. (Don't ask me "where?" on the forum, email or pm if you want details.)

Chuck · Post by **Chuck** » Sun Sep 11, 2005 12:36 pm

RB,

I think the Jacobs Creek brand makes marketing the Limited Release range a tough ask. Something about drinking labels. Someone gave me a sideways glance recently when I pulled out an '01 LR Chardonnay. I am a great fan of the Cab/Shiraz and Chardonnay. The wines are seriously good and can be picked up cheaply at auction. Recently scored 6 x '99 cab/shiraz for $22.00 with some '97s at lower prices and '01 Chardonnays for $11.00

Chuck

Guest · Post by **Guest** » Sun Sep 11, 2005 12:42 pm

I picked up a number of bottles of the 99 LR cab-shiraz at auction for low $20s too, which feels like daylight robbery. I think it might still be available on the exchange for $30. The 1999 is not in the class of the 96, but it is still a very good wine, a ridiculous bargain at that price. The LR brand has never taken off. At $100, it never will - though human beings can be funny sometimes. You never know.

Campbell.

Chuck · Post by **Chuck** » Sun Sep 11, 2005 1:37 pm

Just checked the latest local auction realisation and some '97 LR shiraz/cab went for $15 and $16.

Chuck

Red Bigot · Post by **Red Bigot** » Sun Sep 11, 2005 1:45 pm

Chuck wrote:Just checked the latest local auction realisation and some '97 LR shiraz/cab went for $15 and $16.

Chuck

JO scored the 97 at 86 pts, drink 99-2002, maybe not even worth the $16+commission if it's tired already?

707 · Post by **707** » Sun Sep 11, 2005 1:59 pm

I picked up some 98 LR Shiraz Cabernet around half RRP, excellent wine and a steal at the price.

Aren't marketers wonderful people, if your mail is correct Brian, then I can't see sales increasing.

Dropping Centenary price down is a great idea though! I'm queuing up already for the 98.

Grant · Post by **Grant** » Sun Sep 11, 2005 2:37 pm

This wine game works in funny ways. I was recently talking to the Austrade people in a far away market, who told me of an Aussie wine that had been sitting on the shelves in that country for $25 and not moving a single unit. The winery decided to increase the price to $60 and now they can't keep up with demand!

The 96 Jacobs Creek LR Shiraz/cab is a lovely wine, and the 2002 LR Chard is well worth a look too.

Cheers

TORB · Post by **TORB** » Sun Sep 11, 2005 3:27 pm

Orlando Wyndam is fantastic at marketing low cost wines; just look at teh success of Jacobs Creek and Richmond Grove.

At the top end, their past history shows they have absolutly no idea how to market wine. To my way of thinking, thats great as the wines are a staple in my cellar and very good value.

By chance, I was looking for at my hand written TN sheets from my [bMay 2004[/b] trip and saw the prerelease tasting note on the 98 Centenary Hill. My note says "to be released in June/July."

So in May 04 the winery thought it was a month to two months away; we are now in September, not 04 but 05 and the wine still hasn't be released. Yep! Great marketing and brand management. :roll:

Lincoln · Post by **Lincoln** » Sun Sep 11, 2005 4:52 pm

They're nuts - slapping Jacobs Creek on any wine is the kiss of death in the premium end of the wine market ...

707 · Post by **707** » Mon Sep 12, 2005 8:34 am

Lincoln wrote:They're nuts - slapping Jacobs Creek on any wine is the kiss of death in the premium end of the wine market ...

Yep, I get funny looks and find myself explaining what the wine really is everytime I take a Jacobs Creek Limited Release somewhere.

I can see what they're trying to do but the JC <$10 brand is too well entrenched and just doesn't give the kudos on the dinner table. Can't imagine suits taking one out to impress friends and associates.

Guest · Post by **Guest** » Mon Sep 12, 2005 8:49 am

Steve,

I fully understand what you say and to a great extent I agree with it, however there is one angle that I recon that they may be trying to hang their hat on.

Whilst many of the knowledgeable drinkers may avoid the label because of the image associated with the low priced brand, possibly they are hoping the millions of peoiple who know little about wine will buy the mid range wines when they are looking to buy a special occasion wine; ergo the label is known and safe rather than taking pot luck.

I am not saying it will work, but it could explain their thinking.

707 · Post by **707** » Mon Sep 12, 2005 9:05 am

I understand their thinking and it's something like you say. It's also about cutting down the label numbers and strengthening the JC brand.

Just that they're likely to lose more buyers than they gain in the short/medium and maybe even longer term.

The Limited Release range are teriffic wines but not sure how well they sell, that's why the auction market is such a fertile purchasing ground for them.

Let's wait and see what transpires, some marketing types have got their arses on this one!

Red Bigot · Post by **Red Bigot** » Mon Sep 12, 2005 9:06 am

The article I got the info from indicated that in the USA 15% of the JC sales were already at the Reserve level, so they are looking to build on that upward momentum and offer a complete range at hot-spot price-points from under $10, through $15-$20, $40 and the top of the pyramid at $100.

Giving the top wine a name "Johann" is also a lot more "prestigious" than "Limited Release", especially when they have already bastardised the LR level by releasing a 98 Cabernet in the low $20's street price range.

Anyway, (since people have mentioned Langtons's already) the publicity has moved much of the stock of the LR 99 available on Langton's Exchange, it's been listed there for many months without moving, only 2 6-packs left now, I bought my 6-pack there in October 2004.

Guest · Post by **Guest** » Mon Sep 12, 2005 9:08 am

Steve,

I fully understand what you say and to a great extent I agree with it, however there is one angle that I recon that they may be trying to hang their hat on.

Whilst many of the knowledgeable drinkers may avoid the label because of the image associated with the low priced brand, possibly they are hoping the millions of peoiple who know little about wine will buy the mid range wines when they are looking to buy a special occasion wine; ergo the label is known and safe rather than taking pot luck.

I am not saying it will work, but it could explain their thinking.

TORB · Post by **TORB** » Mon Sep 12, 2005 9:30 am

that twas I for some reason I was not logged in.

BA · Post by BA » Mon Sep 12, 2005 12:35 pm

Why does this remind me so much of Jamieson's Run.

The child label becomes so popular it grows so big it takes over the parent label. The old classics like the Mildara white label Coonawarra Cabernet became either impossible to find or converted to other JR labels (McShane's, Alexander's etc).

Anyone here remember not too long ago when all these were then getting flogged for half price or less to anyone who'd take them ???

Anyone like to bet aginst this one going the same way......

cheers
BA

Grant · Post by **Grant** » Mon Sep 12, 2005 2:43 pm

Speaking of Jamieson's Run, the winery was put up for sale last week, obviously the first in a raft of rationalisation's under the new parent company. Any takers?

Cheers

707 · Post by **707** » Mon Sep 12, 2005 3:23 pm

Jamieson's Run is not a small operation and if they leave all the equipment inplace then you'd need a sh.tload of tonnage to make it viable.

Not sure there's anyone that big with that need down there although the geographic area it can process from is of course substantial and could even process Vic fruit it's so close to the border.

Be an interesting development to watch.

Andrew Jordan · Post by **Andrew Jordan** » Mon Sep 12, 2005 4:21 pm

I wonder if part of the reason for the marketing change is for export reasons. Correct me if am I wrong, but I do not think St Hugo, Jacaranda Ridge, Centenary Hill or the LR Cab/Shiraz is exported to the US, at least not in HUGE quantities. Maybe to other countries but while I was living over there these 4 wines were not readily avaliable in the states, if at all. By putting Jacobs Creek on the label of these 4 wines, it gives them instance recognition to the US wine buying public, plus taking advantage of all the marketing dollars spent already on the Jacobs creek name overseas. I only hope we do not read reports in the near future that you can buy St Hugo on supermarket shelves for under US$10 (like the Wynns Black Label) :evil:

AJ

Mike Hawkins · Post by **Mike Hawkins** » Tue Sep 13, 2005 11:06 pm

Andrew,

I'm hoping I do read those reports ! I've never seen Centenary Hill over here, or found it on Winesearcher.

Mike

Andrew Jordan · Post by **Andrew Jordan** » Wed Sep 14, 2005 9:56 am

Mike,

If you do, make sure you send some back this way on your next trip back to Sydney! :wink:

AJ