Constellation cuts Hardys sub-brands

04 April, 2008

Constellation Europe is dropping a number of sub-brands from its Hardys wine range in a move to help shoppers trade up.

The company has outlined plans to get rid of some of the Australian brand's 26 SKUs, especially those at the lower-end, and to move prices up across the range.

The changes were announced as Constellation revealed details of a £12 million investment in Hardys that includes a national TV ad.

President Troy Christensen said the rationalisation was aimed at driving more consumers into the category.

He added:

"We're trying to get consumers to premiumise and to show them that Australia is more than just a value proposition."

He said the move was also motivated to a lesser extent by the need to meet the increasing cost of raw materials, duty rises and Australia's poor vintage.

Hardys is backed by biggest ad spend for a wine brand in the UK - see page 19.

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