Crush reacts to credit squeeze

08 August, 2008

Crush Wines is restructuring its portfolio as part of a three -year plan to respond to changes in consumer buying habits caused by the credit crunch.

The agency is reviewing its range, putting particular focus on developing its £4 -£6 offering. The move includes a number of deals with new suppliers from Italy, South America and South Africa.

Crush has also dropped suppliers which it believes are "seen to be superfluous or not prioriti sing the UK market", such as Saxenburg from Stellenbosch and Salena Estate from South Australia.

Managing director Chris Ellis said: "If that means saying good bye to peripheral niche organic producers and bringing on those who are more keenly and commercially focused, then so be it. Consumers' purses are stretched at the moment. They will stay loyal to wine but will be less loyal to the premium brands.

"Our low -cost, low -overhead business model is ideally suited to the present trading conditions. The fact we are fit and lean will give us considerable trading advantage over the next few years. Our focus is on innovation, packaging, creativity and sheer quality at the £4 -£6 category."

Crush's decision to restructure its supply base enables it

to offer the "best value wines from most of the major wine producing countries", Ellis added.

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