Coles has announced that it will scrap Vintage Cellars and First Choice Liquor Market due to low brand awareness.
👉 Background: While you may be familiar with the Coles Supermarket within Coles Group, the Group also owns Coles Financial Services, Flybuys and Coles' liquor division.
👉 What happened: While Coles Group's annual profit popped over $1.1 billion, the earnings from its liquor division (think: Liquorland, Vintage Cellars and First Choice Liquor Market) actually dropped 6.5%. So now, Coles has announced that it will scrap Vintage Cellars and First Choice Liquor Market due to low brand awareness.
👉 What else: The goal is to simplify the message to consumers because right now, they’re run as three separate businesses under the same parent company.
💡Brand consolidation can be a powerful strategy for companies that own multiple brands within the same industry.
💡Right now, the three liquor companies run separate promotions across different teams - on the same products. So it doesn't make a whole lot of sense to juggle multiple brand identities that compete for the same market share.
💡In the early 90s, Colgate-Palmolive had acquired a heap of competing household products. Shortly after, it cut 25% of its products in one big swoop. It saved them almost $20 million a year and also strengthened their market position for the brands that remained.
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