Last week we bought you a story on Vinomofo’s record sales in Singapore, following its launch there two months ago. One of Power Retail’s valued readers, Steve, sent us a response voicing his thoughts around Vinomofo’s wine discounts and diminished brand value of wine producers.
Vinomofo have done a great job, however the biggest hurdle for Vinomofo moving forward is going to be supply. There has been rationalisation in the Australian wine industry in the past 6-7 years and there is no longer a glut of wine.
There are many producers who don’t want their brand value diminished by excessive discounting, even under the Vinomofo secret deals and black market deals. Many wineries will not supply them any longer.
I think that Vinomofo will move further down the track of their own buyers own brands just like Coles, Woolies, Aldi etc. They have already dipped there toe in it with their collaboration brands such as Fanny Limehead, art of War, Duck sauce etc.
It will be interesting to watch how they maintain supply relationships moving forward.
André here, founder of Vinomofo. You’re spot on, and we recognised this a couple of years ago, which is why we’ve been focused on becoming a complete wine destination.
A lot of our biggest-selling wines now in Australia aren’t necessarily hugely discounted. They’re just damn good wines, offered at a good price.
As we expand around the world, we add more and more value to Australian producers, helping them reach more and more people with their wines.
But even in Australia, our value to producers is in the wine lovers who trust us, and look to us to help them find good wines. If you’re a producer who makes good wine, with love and care, then we can get that wine in the hands and mouths of people who will love it.
There are also times when every producer, no matter the supply v demand state of the broader industry, has a great wine that they have too much of. We will always be able to help producers turn that stock and/or cash flow issue into a solution, whilst still getting their wines into the right hands.
And if they do not have a stock problem on a good wine, we can also help them get it into the hands of good people who will love their wine, at a sustainable price that works for them and the drinker.
That’s come with having half a million mofos in our tribe, and looking after them.
We’ve very much moved into an era of ongoing value to a producer, not simply a solution for over-supply.
And we love it.