“I want our customers to be proud to buy and consume wines bottled in Reunion Island.. »
This is how David Cailleux, who had just been promoted to general management of the Indian Ocean Wine Company (COVINO), concluded the interview he gave us in March 2020, on the eve of the outbreak of the Covid-19 health crisis. The start, in June, of the Paille-en-Queue brand is the culmination, two years later, of this ambition. Recognizable on the shelf by its bright blue label and collar, Paille-en-Queue obviously opens a new page in the history of COVINO, leader in the local wine market. Paille-en-Queue is distinguished by a higher range positioning and by a clearly displayed and asserted Reunion identity. The new brand highlights the bottling of appellation wines in Reunion, transported in insulated tanks, which until then were mainly imported in bottles. Enough to provide the consumer with extremely attractive value for money. The launch of Paille-en-Queue occurs in the context of rich news for COVINO. Sign Nicolas, whose company has the master franchise in the Indian Ocean zone, celebrates its bicentenary this year and celebrates on the island the opening of its 10th cellar in St Joseph. Completely renewing its spirits portfolio, COVINO is the new brand agent of Diageo and Maison Isautier for the CHR network (Cafes Hotels Restaurants) and Nightclubs, as well as for the network of Nicolas cellars. David Cailleux comments for Leader Réunion on these different strategic developments.
Meeting Leader : The Indian Ocean Wine Company has just launched a new wine brand : Paille-en-Queue. How was this project born and what is its ambition? ?
David Cailleux : With Paille-en-Queue, I am in the continuity of my predecessors by highlighting the profession of COVINO bottler, company which today has 70 direct employees, and which has real know-how of nearly 70 years in Reunion. The birth of this project came from a decision shared with my colleagues to promote local bottling by clearly informing the consumer about the bottles., which now bear the mention : “Bottled by the Indian Ocean Wine Company, at the port, The meeting. » With the Paille brand- in- Queue, we have started “premiumization” work and are going further in the development of our local offering by offering a new range with a value for money that meets consumer expectations in this segment. A first variation of the “Paille-en-Queue” wine is offered under two appellations : an AOC Bordeaux Supérieur wine and an AOC Côtes-du-Rhône wine certified Terra Vitis (Responsible Viticulture). With Paille-en-Queue, I wanted to combine two ambitions : moving upmarket and clearly displaying COVINO’s Reunionese identity. With Emmanuelle Ramaye, Responsable Marketing, we sought a brand name radically different from our historical brands, and traditional wine brands. We wanted a brand that was above all evocative of the island of Reunion., who speaks to everyone, and which gives us a true local identity. After consultation with our colleagues, we stopped at “Paille-en-Queue”. Eventually, it became a business project.
How do you inform consumer of the origin of the wine ?
We are completely transparent with the consumer. The AOC is clearly written on the label, and the back label, on the back of the bottle, specifies the role of COVINO as a bottler and under what conditions the wines are imported and bottled, to ensure their quality. To be even more explicit, we have developed a sticker on the label of Paille-en-Queue wines which indicates : « Covino, Bottler Péï. » There is therefore no ambiguity about the origin and provenance of the wines : whether they come from mainland France or elsewhere, it's indicated. On the other hand, the consumer clearly knows that these wines are bottled by Covino au Port, that is to say by the men and women who participate in the development of the local economy and whose know-how deserves to be highlighted.
You are therefore initiating a move upmarket of the wines bottled by Covino ?
Yes of course, however, COVINO does not deviate from its primary desire to offer wines at an accessible price for the consumer. The company is known for meeting the demand for “entry-level” wines. I have a duty to continue this adventure for our loyal customers. But also to continue the development of the company through several avenues including moving upmarket. This is how, as a trained sommelier and wine enthusiast, I wondered about COVINO's ability to bottle wines with the Terra Vitis label, while maintaining their taste and organoleptic quality over time after its delivery to our island. These wines require compliance with specific specifications, which required the implementation of new Quality processes. Today is a challenge, that we noted with the production and logistics teams given the fact that the wines we bottle in Reunion come from the mainland by boat, in insulated tank which protects the wine from temperature variations and preserves its quality. Today all our wines including our emblematic brands like Royal, Bouton d’or, Baron Peyssard, Marquis of Robitaille, Teriana comes in insulated tank.
Why did you choose the Terra Vitis label? ?
We opted for the Terra Vitis label, which is specific to wine and validated by an independent organization. Terra Vitis defends sustainable vineyard management, based on the principles of sustainable agriculture. From the vines to the cellar, this approach aims to preserve the environment, man and his health, the economic viability of winegrowers, and always the pleasure of wine. About us, we have perfect mastery of the product and have marketed Côtes-du-Rhône Marc Bonadieu “Terra Vitis” since 2020, which has tripled its volumes in one year ! This good reception from consumers convinced us that we could go further with this type of offer while remaining accessible..
The first two wines are marketed under the Paille-en-Queue brand. How did you choose them ?
Our choice fell on two products : an AOC Côtes-du-Rhône certified Terra Vitis and an AOC Bordeaux Supérieur. The Bordeaux Supérieur label, corresponds to stricter specifications than a generic AOC Bordeaux. These two wines, under the Paille-en-Queue brand, come from a selection of wines from the Castel group. These two wine regions, are the two regions most represented in the shelves in Reunion. At the end of 2021, we estimate that nearly 55% of appellation wines purchased in mass distribution, come from the Bordeaux region, followed by wines from the Rhône valley representing a little more than 10% of sales.
How is this new product received? ?
The first results are there. We are delighted that all the distribution players have supported the local sector through the referencing of our new product.. All the circuits asked for it : hypermarkets, supermarkets, local shops but also restaurants. Demand looks set to be strong for the product. It is still too early to draw a conclusion, because we are still in the product discovery period, but it seems that there is real enthusiasm for this product. I believe that we are really bringing something new by bottling wines of this quality in Reunion Island., which allows us to offer them at a price of less than six euros excluding promo !
Since then, what is your objective with this new brand Paille-en-Queue ?
We are convinced that Paille-en-Queue wines have potential. We are on the right path. The objective will be, if the consumer confirms our impression, to extend the range to new appellations.
Does this project reflect the traffic jam shift that you announced in 2020?, just before the pandemic ?
Yes, completely. This corresponds to my desire as a developer. By taking over the general management of COVINO, I was very interested in the history of the company. Paille-en-Queue, which pays homage to Reunion, is also a nod to the history of COVINO, which began its bottling activity in 1957. SO, oui, Paille-en-Queue materializes the shift I wanted to take in industrial activity. Paille-en-Queue is the culmination of a long team effort of which the company and all its employees can be proud.
How did you get through the Covid crisis period ?
The ax fell shortly after my arrival ! We had to react quickly while gaining perspective on the situation.. But COVINO has the strength to have three complementary distribution circuits. During confinement, we immediately refocused on home delivery and we had, with the Nicolas cellars, the right tool : The online store. Throughout the health crisis, we noticed a transfer of wine consumption from outside the home to the home : restaurant customers have moved towards wine cellars. Regarding mass distribution, its activity was initially maintained then experienced real progress from the second half of 2020. Finally, the most impacted sector was the CHR – Cafés, Hotels, Restaurants and Nightclubs – whose activity has been considerably slowed down. We wanted to remain close to our customers during this extremely difficult period for them.. The entire CHR department team maintained close commercial support, with very few sales so that customers do not feel alone in the ordeal. This support has borne fruit, and partly explains the good results we are experiencing today. We have developed our client portfolio, and are increasingly recognized for the quality of our products, our support and services.
Beyond Paille-en-Queue, are new strategies at work? ?
New partners have joined us and we are very proud of it. The Diageo group has entrusted us with the distribution of its Johnnie Walker brands, J&B, Haig Club, Talisker, les vodkas Smirnoff, Ciroc, Ketel One, Tanqueray and Gordon's gins, etc., for the Café circuit, Hotels, Restaurants and Nightclubs, as well as for our network of Nicolas cellars. Another great opportunity that delights us : Since 2020, we have been the brand agent of Maison Isautier for the distribution of its products in CHR and in our Nicolas network.. Maison Isautier is a very dynamic historic company in Reunion Island.. These new collaborations are real drivers for our CHR team and are working very well. We are also studying other developments such as that of the Malagasy brewery Star, notably the THB beer very popular in Reunion. Finally, as a subsidiary of the Castel group, we act on the island with a Castel-Frères antenna role, and fully pursue the development of recognized brands such as Baron de Lestac, The Ormes of Chambers, Roche Mazet or the BABV (flavored wine-based drinks) Very to name a few.
Some supermarket wine and spirits departments have an offer that, a dimension, is similar to that of a cellar. Do the two sales channels not become competitors? ?
On the contrary, the two circuits are complementary in a wine market which is around 13 to 14 million bottles per year and remains dynamic. The customer can alternatively go to mass distribution, or in the cellar, according to his wishes. Let's remember the wine offer in Reunion that I personally knew 25 years ago ! We can see that the GMS has made significant progress in its offering and its customer approach, just like the Wine Shop network.. Eventually, there is more complementarity than competition between the two circuits.
How are COVINO and the Nicolas cellars positioned on organic wine and, more generally, on viticultural practices that are more respectful of the environment ?
More than organic, we can talk about a “green” offer, notion which encompasses all the practices of sustainable agriculture. Like the Terra Vitis certification, HVE (High Environmental Value) and ORGANIC. There is strong consumer demand for these certified wines. Overall and with 20 years of experience on CASTEL group properties, this approach of proposing, whatever the distribution channel, wines that defend sustainable vineyard management remain at the heart of priorities.
THE INDIAN OCEAN WINE COMPANY IN A FEW FIGURES
First bottler in Reunion.
70 employees.
28 million turnover in 2021.
5,25 million liters sold in 2021.
500 products distributed (excluding Nicolas).
Market share estimated at 41%, all networks combined, in 2021.
Nicolas in Reunion : 10 caves, 700 wine references, champagnes and spirits.
3 cellars in Madagascar
2 cellars in Mauritius
Comments collected by Olivier Soufflet
Photos Pierre Marchal
