Investor Updates
Australian innovation turns Jacob’s Creek into global success
27 June 2013
Australia’s commitment to innovation has helped turn Australia’s Jacob’s Creek into a global investment success story for the premium wine brand’s French owner, according to an executive from global wine and spirits group Pernod Ricard.
‘Jacob’s Creek has now become one of the most popular wine brands in the world, distributed in over 70 countries,’ Pernod Ricard’s Group Chief Learning Officer, Alban Marignier, said.
Speaking at a seminar on investment opportunities in Australia’s globally integrated agricultural sciences sector, Mr Marignier said Pernod Ricard bought Orlando Wines and its brands, including Jacob’s Creek, in 1989.
The seminar, held in Paris, was organised by the Australian Trade Commission (Austrade). More than 30 representatives of French companies attended the discussions, which canvassed a range of investment opportunities in Australia’s agricultural science and food production sectors.
In an article published in the latest edition of Australia-Europe Brief, Mr Marignier said Pernod Ricard’s success can be attributed to a favourable economy and wine-growing climate, good soil and the French owner’s vision.
‘Working with Australia’s national science agency, CSIRO, for instance, helped us optimise production, creating a ‘win-win’ situation for both the company and wine growers.’
Mr Marignier said companies needed to make an effort to innovate: ‘With CSIRO, other agencies and internal experts, Pernod Ricard has developed such pioneering techniques as recommending the optimal time of day to harvest grapes.’
Pernod Ricard has extended its brand ‘premiumisation’ strategy to Australian wine, which helped cushion Jacob’s Creek sales from a global wine glut.
‘This is illustrated by the simple nature of Australian wine labelling: the ‘brand’, the ‘grape’ and the ‘region’ of production, which encourages clarity and has been a clear marketing edge over the years,’ he said of Jacob’s Creek, which is made from grapes sourced largely from the Barossa Valley region in South Australia.
Pernod Ricard is now leveraging its Australian viticulture and winemaking capabilities to expand into Asia, and in particular, China.
‘Jacob’s Creek has been very successful in acting as a vehicle in developing the Chinese market ‒ to create a culture of wine consumption, appreciation and brand awareness.’
Pernod Ricard is a French wine and spirits company. It is the world's second-biggest alcoholic drinks group by sales after Britain's Diageo. Pernod Ricard recorded global sales last financial year of 8.22 billion euro (A$11.68 billion). Its global brand portfolio includes Chivas Regal scotch, Absolut vodka, Martell cognac and Mumm champagne.
More information