AUSTRALIAN Wine Holdings expects to sell 100,000 cases of its Pitchfork label to the US market within the next five years.
AUSTRALIAN Wine Holdings expects to sell 100,000 cases of its Pitchfork label to the US market within the next five years.
AWH executive chairman Mike Calneggia will head to Florida next February to begin a major push of the brand into its first export market.
And the promotional tour could involve cross-marketing with Western Australian scooter company, Vmoto.
The two companies have struck a local promotional partnership that involves four Vmoto scooters, loaded with Pitchfork wines, turning up at Perth bottle shops.
“There are 50 reps that I have the chance to present to them for 15 minutes so we have to make an impact,” Mr Calneggia said.
He said AWH was marketing Pitchfork in the US because the market was beginning to show a more carefree attitude towards wine.
“Research is showing that wine is becoming an everyday beverage rather than a special occasion beverage,” Mr Calneggia said.
“Pitchfork is not a serious wine; it’s a bit more frivolous and fun, and I think it’s time for the next Evans and Tate Classic or Cape Mentelle SSB.
“And I’m not taking anything away from those brands, I just think there’s room for another.”
But Mr Calneggia is conservative about the growth potential in the US.
“Everyone can see 260 million people and view that as the market, but for our price point we’re looking at 26 million people, so it’s a large market but not over the top,” he said.
“We’re anticipating selling 10,000 cases in the first year and we hope to do more but that’s what we think we can do.
“Our five year plan is to sell 100,000 cases in five years.”
Mr Calneggia said AWH was also in discussions with potential partners in the UK to distribute its premium brands.
Locally, the company is planning to boost sales across its portfolio, effectively doubling its 2004 sales of each of its six brands, which includes lifting Australian case sales of Pitchfork from 10,000 to 20,000.
Meanwhile, Mr Calneggia said legal action from one of its suppliers for the recent $800,000 Alexandra Bridge production facility upgrade was a contract dispute.
JMA Engineering has lodged a district court writ for $141,512 against Alexandra Bridge.
Mr Calneggia said AWH had paid $250,000 of the $390,000 contract but did not owe the remaining monies because of delivery problems from JMA.
