New wine range targets cash-strapped Britons

As the British government pledges £300 billion to once again bail out Lloyds TSB Bank and others to stimulate lending and encourage greater spending, South African wine and spirits giant Distell has launched a new value label aimed directly at the cash-strapped UK consumer. Along with the new range, named Danger Point, comes the strengthening of ties between Distell and two major UK retailers, Threshers and Waitrose. Forming part of the highly popular Two Oceans brand, Danger Point is being listed by Threshers, which has more than 1 000 outlets nationwide. Its entry-level tier is targeted at budget-conscious Britons feeling the economic pinch, all three varietal wines in the range selling below £5 for a 750ml bottle. Distell’s international director, Donald Gallow, says the new offering has been priced to perform in the value segment, “to allow consumers with diminished disposable income to still enjoy their everyday glass of wine.” The group believes its portfolio of brands across the price spectrum makes it possible to participate on a profitable basis in the value end of the market, given the economies of scale. The latest deals have been landed on the back of Distell’s increase in packaged wine exports, active with such brands as Two Oceans, Nederburg and Drostdy Hof, and while the group remains mum on sales increases, they comfortably outpace the climb in South Africa’s packaged wine sales volumes offshore