Handpicked Wines is celebrating an amazing end to 2017 – its last quarter it saw 79% growth in China year-on-year and 39% growth in Australia.
The company has opened new distribution markets in Cambodia, Singapore and the United States, with a new distributor, Vignette Du Vin, in place in Hong Kong.
James Hunt, Export Director for Handpicked, reveals the innovative and unique approach that is spearheading growth for the brand around the world.
What’s the secret to your success in the Asian market?
Within Asia we have adopted a traditional market approach, targeting luxury hotels, restaurants and casinos, which reaches tourists, expats and high net worth local customers.
We have supplemented this with a focus on the overlooked local market segment using the right local partners. In each of these markets within South East Asia is a growing middle class and a new generation of wine consumers who access information through the internet and are consuming in different ways from the generation before them. We aim to bring them great wine in an affordable and accessible way through venues they frequent.
We are currently rolling out our local Australian marketing programs throughout Asia – these all focus around creative experiences such as fashion and wine and art and wine. This allows locals within Asia to connect with wine through lifestyle.
How key has your presence in South East Asian hotels been to the brand’s success?
Presence in some of Asia’s top hotels has provided us with luxury positioning and brand awareness. Activating brand displays within the foyers of hotels like Dusit Thani in Bangkok or the Four Seasons in Shenzhen has helped us establish a presence within local Asian markets .
We have also rolled out local Australian partnerships and events on a global scale – an example of this was our partnership between Thaiharvest (Ozharvest’s new Thai model) and Thai hotel chain Centara this year, which saw us connect luxury hotels with a charity that could reduce their food waste and surplus.
What varietals are driving growth in Asia?
We noticed in China, austerity measures affected the way people consume wine. Palates broadened and consumer awareness around different regions and varietals grew as a result of people creating new and different purchasing habits.
There is definite Pinot Noir growth, as well as a switch from Shiraz to Cabernet. The Asian palate is developing in similarly as the Australian palate did in the 80s and 90s, only at a much faster rate
Can you explain how your China Home Delivery Service works?
Handpicked Wines is a very non-traditional and innovative wine company in many ways, and the way we approach selling is also non-traditional and innovative way. The China Home Delivery service – offered from Australian outbound international airports – has proved successful as it removes many of the barriers that people shopping for wine face. There is a huge convenience factor as customers do not have to carry the wine and can purchase other souvenirs instead. It does not impact their Duty Free allowance so customers are free to buy other liquor and wine products. It increases the customer’s potential spend from a retailers point of view. It is a great way to get the brand into the living rooms of potential customers looking to have with friends while sharing travel stories of their time in Australia.
We were the second brand in Australia to develop this model within the airport environment, and we are currently the No.2 Duty Free wine brand in major Australian outbound airports.
Wine comes first – this service is only successful in part due to delivering high quality wines which have been well maintained in shipping and storage and delivered in a timely and convenient manner.
How is business in the United States?
Within the US we are seeing an evolution and new understanding of different Australian wine styles – which is moving incredibly quickly.
We have been growing within the US market over the past 18 months, and have seen a lot of interest in Australian Chardonnay, especially within LA. The growth of varietals comes through the consumer’s awareness of regionality, this has to come first.
What is driving growth for Handpicked in Australia?
We’re seeing great interest around Rose in Australia, especially coming in to summer. We launched the Handpicked Wines x Romance Was Born collaborative Rose from Yarra Valley in November, and it’s been one of our most popular varietals online and through the cellar door. We are multi-regional, so we try to talk more to region than varietal. We’re seeing a lot of interest in cool-climate wines, and growing awareness and understanding of premium regions where we have vineyards like Mornington Peninsula. We’re finding the Australian consumer is more open-minded and willing to try different varietals.
We launched our first Handpicked Urban Cellar Door in Chippendale, Sydney, in November 2016. We’ve had thousands of customers through the door from Sydney, interstate and overseas to taste wines, attend events and buy retail.
Qantas Epiqure is also a great platform for us that allows people across Australia to access our premium wines.
What is your biggest selling wine?
Although Barossa Shiraz has been historically favoured in export, we are seeing a big shift away from Shiraz within Duty Free and China. Growing quickly off a small base is a strong interest in cooler climate regions like Yarra Valley, and varietals such as Pinot Noir and Chardonnay. Cabernet is starting to eat into a lot of the Shiraz market share.
What has been the brand’s proudest moment in 2017?
A couple of highlights would be bringing to reality our first urban cellar door concept in Sydney, creating a platform for us to showcase 50 wines by the glass, all made by us.
Our total turnover shows compound growth of 50% over the last three years, which is also a proud achievement for all of us. One of my proudest moments in 2017 was the third training session I did with a sales team in Cambodia, where they had evolved from never trying wine before tom, by the third session, asking him questions about the difference between Pinot Gris and Pinot Grigio.
What’s in store for the brand in 2018?
We plan to consolidate our business in Asia, where we have successfully relaunched in the last three years and expand beyond the four states in the US where Handpicked Wines is currently available.
And, of course, make more wines. Our winemaker Pete Dillon is continuing to build the Rose portfolio with a new ‘Trial Batch’ nebbiolo Rose, half under keg and half under bottle. We are also looking at fortifieds.
Pictured: James Hunt with the distributor of Hanpicked in Thailand, Piyapong Karnchanatanon.
