Introducing a diffusion line is a great way to introduce new demographics to your wine. It’s also a great way to experiment without affecting your flagship wines. However, it’s important that in doing so you don’t distract from your main brand. Maintaining the prestige of a winery’s main brand requires clear differentiation and strategic positioning. Here are key things to consider:
1. Create a Distinct Brand Identity
- Separate Name & Labeling – Avoid using the same branding as the flagship wines. Instead, develop a new sub-brand name and unique packaging to differentiate it.
- Different Visual Identity – Use a distinct logo, bottle shape, or label design to ensure consumers recognize it as a different tier. Does your wine usually come in a dark bottle? Try a clear one.
- Avoid Direct Association – Consider referencing the parent winery (e.g., “From the makers of…”) rather than prominently co-branding. This is also a great way to put an emphasis on the winemakers themselves as opposed to the company.
2. Differentiate the Wine Itself
- Varietal or Blend Differences – Offer unique blends, different grape sources, or introduce a new varietal that isn’t in the premium lineup. If your winery is known for its Cabernet Sauvignon, consider a contrasting grape such as Merlot.
- Younger, Fresher Style – Make the diffusion line more approachable, with wines meant for early consumption rather than aging. This encourages people to try different wines as opposed to setting them aside for later.
- Alternative Formats – Consider cans, half-bottles, boxed wine, or screw caps to set it apart from the premium line.
3. Target a Different Audience
- Casual Consumers & Younger Demographics – Market the diffusion line as a fun, easy-drinking wine while keeping the flagship brand for connoisseurs.
- Retail vs. Direct Sales – Sell the diffusion line in supermarkets, wine shops, or online marketplaces while keeping premium wines exclusive to the tasting room and select retailers. Being able to causally try the diffusion line will encourage people to visit the tasting room to try the flagship wines in the future.
4. Price It Strategically
- Maintain a Clear Price Gap – Ensure the diffusion line is noticeably less expensive but not too cheap (so it doesn’t devalue the brand).
- Volume-Based Pricing – Make it an everyday drinker with value pricing but still maintain profitability.
5. Position It with a Unique Story
- Example themes:
- Sustainability – “A second label made with our organic vineyard’s youngest vines.”
- Experimental Wines – “A creative project from our winemaking team exploring unique blends.”
- Regional Focus – “Wines showcasing different vineyards outside our estate-grown collection.”
6. Keep the Core Brand Premium & Exclusive
- Limit discounting on flagship wines to protect their perceived value and keep exclusive releases, aged wines, and reserve selections under the main label.
- Offer wine club perks that aren’t available for the diffusion line.
7. Use Different Sales Channels
- Sell Flagship wines from your tasting room & reserve for wine club members
- Market your diffusion line through local grocery stores, wine shops and restaurants
- E-commerce & Subscription Services for Both (perhaps with separate webstores)
By carefully crafting a diffusion line that complements rather than competes with the flagship wines, a winery can expand its market reach while protecting the luxury perception of its main brand.