02 Feb 12 KWV moves like (jimmi)jagga
In its latest venture to grow its South African business, KWV has launched another new product, jimmijagga, a new ready-to-drink (RTD) fusion wine spritzer.
Hitting the Gauteng shelves late last year in time for the summer holiday season, this debut follows KWV’s earlier launch of Ciao, a ready-to-drink cocktail in a box.
Named after screen legend James Dean and rocker Mick Jagger, the low alcohol (4%) drink is aimed at hip and happening 20-something year olds. It sports retro-chic, Polaroid-imaged labels that will change every three to four months.
Innovations director at KWV South Africa (and the previous Coca-Cola mastermind, or rather general manager, Glaceau VitaminWater and Chaywa Coffee), Gareth Haarhoff, says, “We believe that there has been a gap in the market for a fusion wine spritzer – jimmijagga combines a classic drink with modern infusion. We expect it to compete with premium ready-to-drink products such as Smirnoff Spin, Bacardi Breezer, Red Square and Vawter, as well as wine by the glass in restaurants and bars.”
This spritzer is made up of wine, proprietary sugars and flavourants, available in three different tastes – white wine lemon, rosé melon and red wine plum.
“Although the idea of sweet, flavoured wine may not tickle the fancy of some ‘fancy’ wine spitters, it is a well-made, unpretentious product,” notes wine industry blogger Elona Nel.
“Although the current global market conditions are turbulent, the opportunity in South Africa for a new product launch of this kind is favourable,” says Haarhoff. “We see this as a strong market category. It has demonstrated robust growth over the last five years and we have high expectations going forward.”
According to Datamonitor in July 2010, the Flavoured Alcoholic Beverages (FAB) market size for the last 12 months stands at R3.27m and 183 million litres, and it grew by 2.8% year-on-year. The Compound Annual Growth Rate (CAGR) for 2004-2009 stood at 5.5%. The forecasted CAGR for the next five-years, until 2014, is 3.3%.
“If we compare the FAB category growth against other beverages, it remains strong. Beer grew at 0.1% year-on-year; with a CAGR for 2004-2009 of 1.3%. The cider market grew at 3.1% year-on-year and shows a 5.7% CAGR,” Haarhoff adds.
The expansion into the FAB category forms part of KWV’s plans to grow their market share in South Africa and to meet the increasing demand for a good quality products in the RTD market.
As a well-known producer of high quality wines, KWV is poised to leverage their heritage into new product formats.
“jimmijagga is filling a gap in the market. As the first fusion wine spritzer in South Africa, jimmijagga is an exciting addition to the RTD market and offers consumers an extra-extraordinary new option,” Haarhoff explains.
Unique, stylised glass bottles of 275ml are available in four-packs or as a case of 24. jimmijagga launched into selected Gauteng on-con outlets from 25 November 2011. Durban and Cape Town can anticipate its arrival in early 2012.
Collotype Paarl Labels supplied the labels, while the black twist-off crowns are imported from Newbox in Italy.