global wine marketing / speech by mr. marian kopp sept. 2006

The set up and global launchof 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

The Racke Company

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 globalbrands, such as Yellow Tail, Codorniu, GIV, Castel.

fiscal year2005/2006

1. turnover

2. sales

The Racke Group

- Data -

133 mio. /

$ 173 Mio.

4 mio cases

CZECH REPUBLIC

POLAND

THE NEDERLANDS

SUBSIDIARIES IN EUROPEIn Europe we are distributing our brands and

partner brands with strong sales forces.

Racke Brand Portfolio / basic tier

Key Portfolio: International & National Distribution Brands

Industry Role Model: Joint-Venture Brands

Successful global launch of awine brand:

Golden Kaan

High

Low

PerceivedValue

High Low

Delivered Costs

High PerceivedValue Competitor

"Outpacing"Competitor

"Confused"Competitor

Low DeliveredCost Competitor

Brand strategy

Nichestrategy

Costleader-

ship

Focus: content

Niche distinctionSuperior image + qualityDistribution on-trade,specialists

Focus: consumer

Brand (consistentquality)InnovationDistribution (Service)retailers

Focus: process

Cost controlScaleDistribution (discount)retailers

High

Low

PerceivedValue

High Low

Delivered Costs









Brand strategy

Nichestrategy

Costleader-

ship

Focus: content


Focus: content


Focus: consumer

Brand (consistentquality)InnovationDistribution (Service)retailers

Focus: process


Focus: process


Positioning Strategies grid (Rabobank research, 2006)

Understanding the wine consumer

The key issue to marketing our products and developing newwine brands is our knowledge of the consumer.

Knowing not only their demography but also their habits,attitudes and demands is crucial to develop brands exactlymatching the consumers needs.

Therefore consumer analyses are conducted on a regularbasis to identify consumer clusters and their characteristics.

Existing international consumer segmentations for wine, e.g.:Racke 2004; updated annuallyConstellation, USA 2004Waverly, UK 2004Wine Intelligence, UK / USA 2005

The brand-orientedWine consumption is of high importance and has to offeremotional benefitsCountry affinity: New World WinesVery high brand and off-trade orientationEven male-female split, mainly 20-39 yearsTypical off-trade spend: 2-4

Example: German target consumers forGOLDEN KAAN

(Racke Clusters 2004)

The ambitious juniorWine is part of one s life(style)Country affinity: Italy, New World WinesRather maleTypical off-trade spend: 43% 4+Wine connoisseurship under development

The connoisseurWine lover and connoisseur with above average wine

knowledge and usagePreference of high-class wines of all originsRather maleTypical off-trade spend: 89% 3+

The mainstream at-homersChiefly drink wine at home (on their own or with

friends)Wine frequency: 3+ times per weekCountry affinity: France, Australia, Chile, South AfricaHigh wine involvementEven male-female split, mainly 35-64 yearsTypical off-trade spend: £4-5The weekly treatersDrink wine once or twice a week (usually at home)Country affinity: Australia, Italy, GermanyModerate wine involvement58% female, more likely to be young (18-34) and

singleTypical off-trade spend: £5+

The entertainersOccasions for wine drinking: socialising, eating with friendsAdventurous with all countriesHighly brand conscious62% female, aged 25-49Wine spend: £3-6Regularly buys on promotion, trades up on special occasions

Example: UK target consumers forGOLDEN KAAN

(Wine Intelligence 2005 & Waverly 2004)

6 Project Steps

from Project Start

till International MarketPresence

Time frame 1.5 2 years

Our development process for new wine brands

Step 1 Basic principles market research

Step 2 Development of concept ideas and first market researchRevision of winner concepts

Step 3 Final concept testing to check commercial viabilityStep 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 keymarkets

consumer´s mindset of South Africa

development of the brand Golden Kaan

Intro_gk_neu.exe

- Golden Kaan Classic Range -

GOLDEN KAANLTD. / LLC.

GOLDEN KAANLTD. / LLC.

DISTRIBUTION NETWORK

AFRICAAFRICA

KWVINTERNATIONALKWV

INTERNATIONAL

RUSSIARUSSIA

ALIANTAGROUPALIANTA

GROUP

EUROPEEUROPE

UKUK GERGER NLNL NOR/SWENOR/SWE

FINLAND: MaxxiumDENMARK: StrandgaardenAUSTRIA: KattusSWITZERLAND: DennerISLAND: K. KarlsonIRELAND: BWG Ltd:POLAND / R: Racke

ASIAASIA

Japan: KokobuJapan: Kokobu

AMERICAAMERICA

USAUSA

CANADACANADA

South CarolinaPennsylvaniaNew MexicoCaliforniaColoradoKentucky

ArizonaFloridaNevadaHawaiiIllinois

NEW JERSEY: NEW YORK: TEXAS:

CORBYDistilleries:PERNODRICARDGROUP

DUTY FREEDUTY FREE

GEBR.HEINEMANNGEBR.

HEINEMANN

Since the launch more than

10 mio bottles /830,000 cs.

have been soldworld wide.

Represented in 28 countries.BreakEven in year 3.

Thank you!

Marian [email protected]

www.golden-kaan.comwww.espiritu-de-chile.com

global wine marketing / speech by mr. marian kopp sept. 2006

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