Project Type: Brand an Packaging re-stage
Varietals: Pinot Noir, Pinot Gris
Pinot Noir - $15-20
Pinot Gris - $12-16
Hinman Vineyards was founded in 1979, and benefits from its legacy image in the Oregon market with distribution in Grocery accounts throughout the state. Low-end price positioning in all varietal categories had led to substandard profit margins across the board, while sales were continuing to decline steadily in spite of the brand's value proposition and strong consumer recognition in-state. (Previous label shown here.)
Reverse negative sales trends, increase retail shelf price by at least two price points, differentiate brand within its competitive set, and create a brand concept that can serve as a viable platform for national distribution and volume growth.
The client's primary concern was price sensitivity in the Oregon market given Hinman's historic value proposition. Also, confusion existed between the winery's flagship Silvan Ridge brand and the Hinman Vineyards brand among Oregon consumers due to their overlapping label designs and appellations. Outside Oregon the brand had no unique selling proposition other than low price.
Created new packaging specifically targeted at female and millennial audiences, with a contemporary look and feel to suggest youthful lifestyle through an elegant, "storybook" mystique. Standardized all Hinman Vineyards wines to the Oregon appellation to clearly differentiate them from the Silvan Ridge flagship. Created the tagline "Discover the Elegant Side of Oregon."
Current direction is to rationalize portfolio to two varietals only by end of 2016, offering Pinot Noir and Pinot Gris only. Since the new package market launch in Fall 2013 sales of these SKUs are up 20%. One full $1.00 retail price increase was taken in January 2014, with another planned for Pinot Noir in July 2015.
Anecdotal response from retail buyers, Oregon distributor management and out-of-state wholesalers has been strongly positive. Ex-Oregon sales are projected to increase by 166% in the 2015 fiscal year. Total Hinman Vineyards Pinot Noir sales increases are projected at 47% despite two price increases in less than two years.