Green International Wine Marketing
76 Australasian Marketing Journal 10 (3), 2002
Introduction
One of the major challenges facing Australian firms in
the international marketplace is how to differentiate their
products from those of competitors. This case explores
the challenges facing BRL Hardy Ltd. of Australia and
how they met the challenge in a global wine market that
is highly competitive and characterised by multiple players, labels and products.
Although Australia has captured only 5% of the world’s
wine market, Australian wines are the fastest growing
import category in key markets such as the UK and
USA, stealing market share from traditional ‘old world’
wine producers such as France, Italy, Germany and
Spain. Australia’s success to date stems not only from its
comparative advantage of producing quality wines at
reasonable prices, but the ability of Australian wine
companies to build brands to compete internationally.
This case study demonstrates BRL Hardy has identified
a unique global market segment of a wine targeted at the
environmentally conscious. The case covers the initial
stages of the implementation of the strategy to position
its BRL Hardy’s Banrock Station brand of wines in the
environmentally conscious segment, through to a promotional program of ‘green’ international wine marketing.
Background
BRL Hardy Ltd. was formed after a 1992 merger of
South Australian-based wineries, Berri Renmano Ltd.
and Thomas Hardy and Sons Pty Ltd. It is now one of the
top four wine producers in Australia and one of the top
10 largest wine groups in the world. Its Banrock Station
brand, produced from grapes mostly grown in the
Riverland region of South Australia, is the rising star of
the company’s wine portfolio. The first wine stock was
produced as recently as 1995, and now production is 2.4
million cases a year.
In 1994 BRL Hardy acquired Banrock Station with 250
hectares of good soil for producing premium grape varieties. The rest of the property is made up of 900 hectares
of wetland and 600 hectares of protected Mallee
Woodland eco system. The property was suffering from
the impact of prolonged farming and grazing. BRL
Hardy, together with Wetland Care Australia undertook a
huge revegetation program to remove stock, install fish
barriers and reintroduce natural wetting and drying
cycles in the wetland. This has resulted in the native
birds and fish, water plants, frogs, and insects returning
to restore the health of the River Murray.
The 250 hectares of new vineyard is used to produce five
major wine varieties. As Figure 1 shows, red wines are
more favoured than white wine varieties.
The vineyard’s total yield per year is 5,000 tonnes which
converts to 3,500,000 litres of wine or 380,000 cases. The
additional tonnage required to meet domestic and export
Green International Wine Marketing
Mary Pugh & Richard Fletcher
Abstract
The Banrock Station brand, owned by wine producer BRL Hardy, has been highly successful in the UK and USA, and
in the Australian premium wine market. In part, success has arisen from the positive attributes of being a ‘new world’
wine, but the case study shows that it is branding as a ‘green’ wine that supports conservation activities that has given
Banrock Station a distinctive edge. The experience of BRL Hardy points to a number of key lessons in international
marketing that may help other companies break free from the competitive pack.
Keywords: Wine marketing, green brands, international marketing
demand of over two million cases comes from purchasing
other grapes from local producers in the Riverland.
Australia and the Global Wine Market
Market conditions are ripe for Australian wine producers
to increase exports. The ‘old world’ wine producers such
as France and Italy, which have historically held a large
market share of the global export market, are in decline.
In 1997, France held 26% of export volume, Italy 23%
and Spain 14%. In total these ‘old world’ producers
represented 67% of the export wine market. However, it
is the ‘new world’ wine producers such as Australia,
New Zealand, Chile and South Africa who are experiencing growth. While only holding a relatively small
market share of export volume, they are stealing share
from the ‘old world’ producers.
Following centuries of quality wine being associated
with ‘old world’ wine producers, Australian wines are
now at the forefront of a new consumer trend led by
‘new world’ producers – the supply of good quality, good
value, ready to drink now, good tasting, fruity wines. As
Table 1 shows, Australia is ranked Number 4 on export
value and is the market leader in ‘new world’ wines.
Australia’s remarkable success in the UK market is being
demonstrated by delivering wine products that are relevant to everyday living and enjoyed by all. The wine
brand ‘Australia’ is leveraging the effect of country of
origin image (Abmed & D’Astous 1996) in transferring
favourable perceptions of quality fruit and a relaxed
lifestyle to its food and wine. This positioning in the UK
and USA markets has stimulated demand for ‘premium’
category wines (i.e., those that are categorised above
basic ‘good quality/good value’ wines).
Australian wine exports have grown substantially since
the mid 1980s. At the end of the 2000/01 financial year,
Australia exported 339 million litres which was a 17%
increase on the previous year. The export market volume
for Australian wine is projected to double in size over the
next ten years to 676 million litres accounting for 61% of
production compared to 47% at present. This is illustrated in Figure 2.
There are five key quality/price segments in the wine
industry. The principal driving force behind increased
Green International Wine Marketing
Australasian Marketing Journal 10 (3), 2002 77
0 20

59
40 60
Shiraz
Cabernet Sauvignon
Semillon
Chardonnay
Merlot
Wine
Variety
No of Hectares
Figure 1: Banrock Station Major Wine Varieties
(Source: BRL’s Banrock Station)
export sales is considered to be in the branded premium
wine segment estimated to account for 34% of world
wine sales. Australian brands in relation to these
segments are shown in Figure 3. As the graph shows,
Banrock Station falls into the premium category (above
‘basic’, and below ‘super-premium’).
Developing an International Strategy
The challenge for BRL Hardy is how to secure additional export sales in an increasingly competitive market.
Application of Porter’s ‘Five Forces Model’ (1990) to
the global marketplace for Australian wines indicates:
New Entrants: There is a likely threat from new entrants,
especially from large global liquor giants such as Diageo
and Allied Domecq of the UK and LVMH and Pernod
Ricard of France, who see the wine sector as a faster
growing business compared to other liquor categories
such as spirits, beer and champagne with which they
were historically associated. They are aggressively
embarking on acquisitions and are interested in
Australian wineries.
Suppliers: There is a low threat from suppliers of grapes
as these have little bargaining power apart from those
supplying Merlot and Verdelho who have more clout due
to some shortage of these varieties. Over-planting of red
wine grapes has given Australian wineries scope to
obtain higher quality product at a competitive price.
Buyers: The threat from buyers is high as securing distribution in a crowded market is difficult, especially when
the distribution channels in major overseas markets are
largely dominated by supermarket and major liquor
chains. There is some evidence that distributors are
becoming more favourably disposed towards Australian
wines due to their consistent quality and availability.
Substitutes: Although there are other alcoholic products
that compete with wine, wine is the fastest growing alcoholic beverage on a global basis. Australia has a comparative advantage in producing innovative, high quality
wines which, because they can be consumed without
aging, attract new wine consumers and young drinkers in
‘old world’ countries.
As illustrated in Figure 4, BRL countered the reaction of
industry competitors to overseas market entry. BRL
differentiated themselves by pursuing a niche market
Green International Wine Marketing
78 Australasian Marketing Journal 10 (3), 2002
Country
1. France
2. Italy
3. Spain
4. Australia
5. Portugal
6. Germany
7. Chile
8. USA
9. Fomer Soviet Union
10. South Africa
Export Value as a % of world
wine exports
41.7
17.2
9.2
4.8
4.3
3.8
3.6
3.3
3.2
1.5
Old or New World Wines
Old
Old
Old
New
Old
Old
New
New
Old
New
Table 1:
1997 World Wine Export Value
(Source: Berger, Spahini and Anderson 1999)
Green International Wine Marketing
Australasian Marketing Journal 10 (3), 2002 79
0 200 400
Million Litres
600 800

2010
Forecast
Current
Year
Historical
2001
1990
International Markets
Australian Domestic
Figure 2: Australian Domestic Market vs International Market Growth
(Data Source: Wine Federation of Australia & Australian Wine and Brandy Corporation, 2000)
strategy in their target overseas markets. This was
achieved by positioning the Banrock Station brand
initially in the two major markets of the UK and USA as
a ‘green’ wine that supports conservation activities. This
involved looking at the market from a different perspective and looking at areas to create value to differentiate
the selected brand from the competitive pack. The key to
discovering new value was asking four basic questions,
as outlined in the Kim and Mauborgne Model (1999)
shown in Table 2.
Addressing these key questions has allowed BRL to
create Banrock Station – a wine that can be simply positioned as “good wine, good earth, good living”.
Kim and Mauborgne (1999) suggest ‘The Value Curve’
– a graphic depiction of the way a company or industry
configures its offering to customers – is a powerful tool
for creating new market space. It is drawn by plotting the
performance of the offering relative to other alternatives
along the key success factors that define competition in
the industry. Identified in Figure 4, the creation of a new
value curve would appear to be possible for Banrock
Station wine, by adopting a marketing positioning strategy based on a ‘green’ wine that supports conservation
activities.
Creating a ‘Green’ Brand
Creating a ‘green brand’ meant tapping into the values
and beliefs of wine buyers. As a starting point, BRL
Hardy recognised that their investment in and achievement of restoring the magnificent Banrock Station
wetlands might be shared with their customers. This
strategy has proven to be successful in Australia. With
every bottle of Banrock Station wine sold, a portion of
the sale proceeds is donated to conservation projects to
ensure environmental havens are restored and preserved
for future generations. All proceeds in Australia go to
Wetland Care Australia and Landcare Australia.
An analysis of the demographics of wine consumption in
developed country markets such as Australia indicates
that the bulk of wine consumers typically fall into the
age group 40 and 60 years with a skew towards women.
This generation is often referred to as ‘Baby Boomers’
and represents about 24% of the Australian population
and around 33% of the US population. It is a group that
is sensitive to environmental concerns. They were the
original activists and are pro environmentalists. They
created the first Earth Day back in 1970. However, the
values of this group have not previously been tapped as
far as wine marketing is concerned.
For this strategy to be implemented, it must be conveyed
to the customer via the brand. The brand is a bond with
the customer. Keegan, Moriarty and Duncan (1992, p.
448) defines it as a “perception in the mind of consumers
who ascribe beliefs, values and personalities to products” and Kotler (2000, p. 404) as a “seller’s promise to
deliver a specific set of features, benefits and services
consistently to buyers”. Strategically, it has been brands
that have made Australian wine producers successful
over other market competitors – not the name of the wine
producer. Successful wine, the brand and the attitude it
engenders, must relate to the wine consumer’s own sense
of individuality and unique style. For a ‘green’ wine, the
brand image should appeal to consumer’s who are seekGreen International Wine Marketing
80 Australasian Marketing Journal 10 (3), 2002
Figure 3: Quality Segments in the Wine Industry
(Source: Wine Federation of Australia & Australian Wine and Brandy Corporation, 2000)
ICON
ULTRAPREMIUM
SUPER
PREMIUM
PREMIUM
BASIC
Volume
Price
Price range Indicative brands
Penfolds Grange
Henschke Hill of Grace
Leeuwin Chardonnay
volume market share: 1% Petaluma Coonawarra
USD 50
AU 50
UK 20

Price range Indicative brands
Barramundi
Banrock Station
Jacobs Creek
Lindeman’s Bin Range
Oxford Landing
Hardy’s Nottage Hill
volume market share: 34%
USD 5-7.99
AU 5-9.99
UK 3-4.99
Price range
volume market share: 50%
< USD 5
Green International Wine Marketing
Australasian Marketing Journal 10 (3), 2002 81
Key Questions
1. Reduce – What factors should be reduced well below
the industry standard?
2. Create – What factors should be created that the
industry has never offered?
3. Raise – What factors should be raised well above
industry standards?
4. Eliminate – What factors should be eliminated that
the industry takes for granted?
Areas for innovation
– Price
– Length of time to markets from the vine to the table
– Alcohol content
– A representation of healthy living
– An environment friendly wine
– A relationship with the brand
– Flavour and wine quality
– Innovative wine styles
– Interesting brands
– Standard labels/packaging
– Snob Factor
– Wine speak
Table 2:
Creating a New Value Curve
ing a product that fits with their values of good living,
being healthy and their desire to act in an environmentally friendly way. Wine buyers are thinking about the
quality connection with where the product comes from
and what they are purchasing.
Ottman (1992) claimed that while quality, price and
convenience are still uppermost in consumers’ purchasing decisions, a fourth attribute, environmental compatibility, that is a product’s greenness, is fast becoming a
tie-breaker at the shelf.
By linking Banrock Station’s brand attributes of good
value, quality wines, that are ready to drink now, with a
conservationist personality it is intended to create a new
source of competitive advantage for BRL Hardy’s
Banrock Station brand. The brand slogan “good earth,
fine wine” easily identifies Banrock Station with
supporting the environment. Additional in-store promotional material highlights Banrock Station Wines conservation initiatives – for example, a bottle flyer with a pelican. This saves the consumer time in evaluating other
Source: Banrock Station Wine postcard
brands and helps them to easily distinguish the point of
difference in retail outlets. In addition, Banrock Station’s
green brand image is reflected in the advertising, good
news stories about conservation projects, packaging,
point of purchase promotions, wine shows and on the
website where consumers can take a virtual tour of
Banrock Station (see: www.banrockstation.com.au).
Application of ‘Green’ Brand Equity to
International Markets
As the ‘green’ marketing approach was successful in
Australia, BRL Hardy decided to apply it to selected
overseas markets which were considered to offer longterm growth potential. The eight selected international
wine markets were the USA, Netherlands, Canada,
Sweden, New Zealand, UK, Finland and Denmark. All
are developed markets with environmentally sensitive
‘Baby Boomers’. In these markets, BRL aimed to build
strategic alliances with local conservation groups, as
they did in Australia. A key to the market entry strategy
was establishing strategic alliances with ‘green’ groups
so as to increase consumer’s confidence in and credibility of the brand’s environmental claims. In each case, a
certain percentage of profit from sales of each bottle of
wine would go to the alliance partner to fund environmental projects. Implementation of this international
approach was facilitated by hiring an environmental
scientist, Tony Sharley, who manages the Banrock
Station Wine and Wetland Centre in Australia. In this
role, he manages conservation projects with organisations in key international markets and can verify
Banrock Station’s ‘green’ credentials.
High on the agenda was Australia’s number one wine
market, the UK, where BRL sells a number of successful
brands. In the UK, Banrock Station wines and the
Wildfowl and Wetlands Trust (WWT) are working
together to save wetlands and wildlife. Funds from
Banrock Station wines are being used to support the
continual monitoring and maintenance of 4,000 acres of
WWT’s wetland reserves and their wildlife.
Green International Wine Marketing
82 Australasian Marketing Journal 10 (3), 2002

Figure 4: The New Value Curve for Banrock Station Wine
Green International Wine Marketing
Australasian Marketing Journal 10 (3), 2002 83
In Canada, BRL established their own organisation to
coordinate environmental projects to help conserve and
protect endangered birds and wetlands (the Banrock
Station Wine Wetland Foundation, Canada). In the USA,
Banrock Station has partnered with the Arthur R
Marshall Foundation to champion restoration and preservation of America’s Greater Everglades ecosystem and
sponsored Cypress Tree Planting Day in an effort to
restore the Everglades ancient forest.
In Europe, Banrock Station wines are working with the
Swedish Wetland Fund, with proceeds supporting OsterMalma, Lida and other wetlands in the area; in Finland,
with Liminganlahti Bay, a high profile and highly
regarded wetland region in the north of Finland; and in
Netherlands Banrock Station wines, Staatsbosbeheer and
Wetlands International are working together to save
wetlands. Recently, Banrock Station commenced a partnership with Danish Nature who will use the funds to
restore wetland in the Langelands region.
Closer to home, Banrock Station wines have combined
with the environment group, Wetland Care New Zealand
to sponsor wetland restoration projects throughout New
Zealand. The first year’s proceeds under the sponsorship
helped to develop a wetland within the widely acclaimed
Karori Sanctuary in Wellington and this year a wetland
has been created at Masterton in the Wairarapa region.
International Sales Growth
Figure 3 shows that Banrock Station is in the premium wine
category offering good value for money. A similar price
positioning has been adopted in selected overseas markets.
As such, it is priced below some of its major Australian
competitors. In the UK, BRL Hardy has had to contend with
a distribution system where the retailers are gate-keepers
and ten accounts can represent 70% of the market. Here,
buyer label wines account for a considerable share of the
market. To counter this it is necessary for Banrock Station
to create an awareness of their own brand. This is being
achieved via the use of cinema and outdoor advertising,
including the London Underground. By contrast, in the
USA the distribution of wines approximates that of fast
moving consumer goods (FMCG) and there is little wine
sold under the labels of buyers. The value for money claim
is being augmented in all markets with the “support conservation theme” and point-of-sale support that reinforces the
conservation image. It is this support that provides the
brand with its unique selling proposition (USP).
Brand
Ernest & Julio Gallo
Jacobs Creek
Hardys
Stowells of Chelsea
Rosemount
Lindemans
Penfolds
Blossom Hill
Le Piat D’or
Banrock Station
Company
E&J Gallo Winery
Orlando Wyndham
BRL Hardy Wine
Matthew Clark
Rosemount Wine Estates
Southcorp Wines
Southcorp Wines
UDV
Piat Pere Et Fils
BRL Hardy Wine
Off Trade % Growth
22%
24%
33%
28%
69%
53%
2%
143%
(-15%)
165%
Table 3:
UK Brands Top Wines 2000 Listing
(Source: Macquarie Bank Research 2001)
This approach has proved to be a deciding factor at the
point-of-purchase amongst the growing number of environmentally conscious consumers in the US and the UK.
Banrock Station wines are proving to be a stand out
performer for BRL Hardy in international markets. They
are ranked Number 7 in the Top 10 selling Australian
wine brands in the US Market and 3rd in volume of the
premium Australian brands exported to the US. In the
13-week period ending 17 May 2001, Banrock Station’s
overall ranked position in the US market was 189th and
it is the fastest growing brand in the BRL portfolio.
Banrock Station is the number one fastest growing brand
in the UK as shown in Table 3.
There is no doubt that much of this success has been due
to the ‘green’ international wine marketing of Banrock
Station wines. Future growth is dependent upon maintaining and building the brand through continued investment in conservation projects and the development of
new markets with significant segments of environmentally friendly wine buyers.
Key Lessons
The success of BRL’s Banrock station brand in the UK
and US markets to date can be explained in part by its
being a ‘new world’ wine, priced in the attractive ‘premium’ wine category with a country of origin image associated with sunshine, health and wide open spaces – an
attractive image consistent with wine production.
However, of themselves these ‘new world’ wine characteristics do not explain the rapid rise in overseas sales, nor
its major market share amongst the Australian premium
wine segment. Success is also due to the niche marketing
strategy pursued by the firm of positioning the brand as a
‘green’ wine that supports conservation activities. This
strategy has positioned the brand in a new marketspace
that includes environmentally conscious consumers. This
strategy appeals to a different set of values, and values
not targeted by other wine producers. Although the
magnitude of this segment may differ between countries,
environmentally conscious consumers are a global
segment that offers considerable potential for the future
marketing of the Banrock Station brand.
The experience of BRL Hardy points to a number of
other key lessons in international marketing that may
help other companies also break free from the competitive pack. The first of these is that innovative marketing
approaches are a useful vehicle for companies to create
new overseas markets and/or reposition themselves in
existing markets. BRL’s approach was to look at their
market from a new perspective and create new value for
stakeholders in those markets. This was achieved by
tapping into the values and beliefs of their customers and
creating new product attributes to influence the purchasing decisions of customers. In this case it was by creating a brand associated with caring for the environment as
illustrated by investing sales receipts back into conservation projects.
The second lesson relates to the need to pursue a strategy in depth rather than superficially if it is to be effective
in overseas markets. In this case a company embarking
on a ‘green’ brand strategy needs to realise it has to be
more than just a gimmick. The company has to excel in
delivering not just the product benefits, but also the
green benefits that customers truly desire. BRL’s experience shows their ‘green’ brand has to stay relevant and
credible. This was achieved by ongoing restoration of its
own wetland, employing an environmental scientist, and
consistently communicating the brand’s environmental
initiatives and project involvement via publication of
‘good news’ stories, distinctive product packaging and
labelling, and through the focus of its sales team. Only in
this way can a company continue to grow the market in
its chosen segment.
Finally, the application of brand management to overseas
markets often requires the building of strategic alliances
with local groups if brand equity is to be sustained or
further developed in these overseas markets. In the case of
BRL Hardy, the strategic alliances were with local conservation groups similar to those with whom alliances had
been forged in Australia. The lesson from Australia was in
this case applied in overseas markets – that the brand must
associate itself with the projects of its alliance partner and
should do this by the firm’s management maintaining an
active interest in the quality of those environmental projects. Banrock Station’s environmental scientist developed
quality controls to ensure that funds directed to those
conservation groups from Banrock Station sales were
invested in technically sound and rewarding conservation
projects. If ‘green’ projects are important, well supported
and understood by the consumer, the brand will build and
increase its ‘green’ brand equity.
In summary, BRL have shown how important a ‘green’
brand is to increasing market share and how innovation
in marketing can help a company create a point of difference that redefines the attributes on which buyers base
their purchasing decision.
References
Ahmed, S.A., D’Astous, A., 1996. Country of Origin and
Brand Effects: A Multi-Dimensional and Multi-Attribute
Green International Wine Marketing
84 Australasian Marketing Journal 10 (3), 2002
Study. Journal of International Consumer Marketing
9(2), 93-115.
Berger, N., Saphini, P., Anderson, K., 1999. Bilateral
Trade Patterns in the World Wine Market 1988 to 1997:
A Statistical Compendium. University of Adelaide:
Centre for International Economic Studies.
Keegan, W., Moriarty, S., Duncan, T., 1992. Marketing.
New Jersey: Prentice Hall.
Kim, C., Mauborgne, R, 1999. Creating New Market Space.
Harvard Business Review, January-February, 83-93.
Kotler, P., 2000. Marketing Management: The
Millenium Edition. New Jersey: Prentice Hall.
Macquarie Bank Research, 2001. Essentials, March 2001.
Ottman, J A, 1992. Green Marketing: Challenges and
Opportunities for the New Marketing Age. Chicago:
NTC Business Books.
Porter, M., 1990. The Competitive Advantage of
Nations. London: Macmillan.
Wine Federation of Australia & Australian Wine and
Brandy Corporation, 2000. The Marketing Decade 2000-
2010, November (www.awbc.com.au).
Acknowledgements
The authors of this case are grateful to Mr Stephen
Millar (Managing Director, BRL Hardy Ltd); Mr David
Woods (International Trading Director, BRL Hardy Ltd)
and Mr Tony Sharley (Manager, Banrock Station Wine
and Wetland Centre) for agreeing to be interviewed and
for their valuable insights.
Biographies
Mary Pugh is a Marketing Project Manager at the NSW
Police. She has recently graduated from the Masters of
Business (International Marketing) program.
Richard Fletcher, PhD, is an Associate Professor and
Director of Post Graduate Programs in the School of
Marketing, University of Technology, Sydney.
Correspondence Addresses
Mary Pugh, C/o School of Marketing, University of
Technology, City Campus, Quay St, Haymarket, PO Box
123 Broadway, Sydney NSW 2007. Email: marygabrielle
@hotmail.com, Richard Fletcher, School of Marketing,
University of Technology, City Campus, Quay St,
Haymarket, PO Box 123 Broadway, Sydney NSW 2007.
Telephone: +61 (2) 9514 3537, Facsimile: +61 (2) 9514
3535, e-mail: [email protected]
Green International Wine Marketing
Australasian Marketing Journal 10 (3), 2002 85