Marketing the Languedoc Brand

January 5, 2008
By Clive Platman

Do you know the difference between Appellation Controllee (AOC) and Vin de Pays (VdP)? A Roussillon or a Languedoc? A Fitou or a Faugeres? If your answer is no, I would neither be surprised, nor should you feel embarrassed. It merely reflects the horrendously overcomplicated French wine-labelling system and a failure to communicate with the consumer.

At a recent Baltic trade congress, Michel Julien of Chateau Villerambert-Julien illustrated the problem perfectly. There was representation from all across France, but the locals made a beeline for Bordeaux, Cognac and Champagne. It was only as an afterthought that any interest was shown in his wines.

Michel appreciates that the classics have established their wines over many generations. By contrast, it is only within the past 20 years that the Languedoc has emerged from being a bulk wine producer, to a region producing quality wines, and only within this past generation has it discovered its potential and identity.

Yet, by virtue of sheer size, the Languedoc should have the financial muscle and clout to be able to compete on the world stage. Only it doesn't, and the reason is due to inflexible thinking, internal politics and the fact that the region as a whole fails to speak with one voice.

There are too many vested interests pulling in different directions, namely Languedoc, Roussillon and Vin De Pays. Nevertheless, credit where credit's due, they have recently pooled their resources to create a catch-all AOC Languedoc, part of the general framework of the new brand "South of France" (SOF) that also represents VdPs.

Michel, though, believes that they wasted a great opportunity. As a member of the original Strategy Committee, he wanted a more radical approach, which might have taken the entire region outside the AOC. The solution was to create a pyramid system representing wines of all status, and each wine would have the brand Languedoc, whatever its rank.

In terms of finance, this would have an enormous impact. With each producer paying a commission on bottles sold to its marketing organisation, the total region and production represented would amount to around 15 million hectolitres, or around 2½ times the production of Australia. As it is, AOC Languedoc only represents around 1 million hectolitres, and is insufficient to produce enough revenue to compete financially in terms of global marketing.

A second problem is that SOF lacks the regional identity of the Languedoc. It could include Madiran or Provence, neither of whom are involved in the organisation.

Faced with increasing New World competition from the likes of South America, French winemakers are feeling the squeeze, particularly due to the collapse of the value of the dollar against the euro.

Michel himself has previously focussed on exports but he has now adopted a strategy of increasing his presence within France. The pity is that there appears to be an ever-increasing domination of the market by a few giants, producing standardised, homogenised wines. Winemakers like Michel Julien need every encouragement.

Katy Jones, marketing director at the Fitou co-operative, Mont-Tauch, continued the theme of internal bickering. As the major producer in AOC Fitou, they neither contribute to AOC Languedoc nor SOF, due to a long-running dispute with the Languedoc Marketing Board (CIVL), over the value of their contributions. Fitou withdrew on the grounds that their tariffs were too high, compared to similar AOCs. Mont-Tauch felt the money would be better spent on self-promotion and, indeed, rank as the most popular Languedoc wine in the UK.

Fitou, though, were more than happy to participate in the South of France campaign. The only drawback was they had to pay their share directly to the CIVL and, due to the ongoing dispute, were not prepared to back down.

Isabelle Coustal of Chateau Ste Eulalie in Minervois-La Liviniere, added a further opinion. She was in favour of the concept, in principal, as it would help promote the region. Her fears, though, were that the wines would be representative of the lowest common denominator, and merely regarded as everyday plonk. Her personal quest is to raise the standard of her own and similar like-minded producers' wines. Her vision would be an amalgamation of the "Cru" (top) wines of the entire region, to showcase the very best. Back in the real world, her hopes are shattered by politics and petty jealousies.

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