Golden Kaan sets out to rule the world

Last month's Vinexpo wine and spirit exhibition in Bordeaux will be remembered for many things.

The freak weather conditions, for instance, which saw temperatures hit highs not seen for 50 years and which left the air conditioning running to keep up, or even the record number of foreign visitors - around 35 per cent of the estimated 48,000 visitors over the five days.

But for two companies in particular, Vinexpo 2003 will be remembered as the culmination of more than two-and-a-half years of market research and collaboration, and the launch of a major new wine brand with pretensions to become one of the most widely drunk wines in the world.

The two companies in question are Germany's Racke International​ and South Africa's KWV International​, and the brand is Golden Kaan, a Western Cape South African wine in six different varietals.

Both companies have strong positions in the branded wine arena. KWV arguably created the South African category in international markets by the mere fact that it was never permitted to sell its wines in the domestic market, while Racke has transformed itself from a domestic market-orientated spirits group into a major international player in the wine market with an impressive portfolio of innovative brands over the last few years.

Co-operation of this sort between rivals is not particularly widespread in the drinks industry - although companies will often distribute rival brands through their own networks - and it is indicative of the shared desire of the two companies to revolutionise the ultra-conservative wine industry.

Although the product was launched on the Racke stand at the show, the wine has clearly been heavily influenced by KWV, and not just in terms of its flavour. The launch itself was accompanied by images and sounds evoking the Dark Continent, and Africa's silhouette plays a prominent role in the bottle design. But the South African emphasis is more than just affectation on the part of KWV and Racke.

With more than two years of market research in the US, the UK, Germany, Scandinavia, the Netherlands and Japan to draw on, the two companies discovered that South African wines had a consistently good image across the world, came out well in taste tests and were generally regarded as excellent value for money.

The South African heritage of the wine should also give it a much wider international appeal. The UK, one of the world's biggest markets for wine exporters, for example, accounts for 50 per cent of all Cape wine exports, while Racke's home market, Germany, is experiencing something of a New World resurgence, driven by Australian, Chilean and South African wines. Both the Netherlands (19 per cent of all Cape exports) and Scandinavia (8.9 per cent) are also seen as potentially lucrative markets for good South African brands.

But the two-and-a-half year pre-launch period was not only to collect market data. A wine with truly international potential must clearly have a taste profile which appeals to as broad a cross section of the world's wine drinkers as possible, and KWV and Racke's winemakers worked closely together to ensure that Golden Kaan had the right full-bodied South African pedigree but at the same time remained easy to drink.

The varietals chosen (Cabernet Sauvignon, Merlot, Pinotage, Shiraz, Sauvignon Blanc and Chardonnay) were selected as having the most international appeal while at the same time reflecting the brand's South African heritage.

The brand will focus initially on a handful of core markets - the UK, Germany, the Netherlands, Scandinavia, the US, Canada, China and Japan, although Switzerland, Austria and eastern Europe are also potentially lucrative markets. France, where New World wines still face an uphill struggle to compete with the local produce, is likely to be targeted from 2004, the companies said.

The two companies will share the cost of the marketing, and although Racke president Marian Kopp declined to say how much money had been set aside to back the ambitious launch, he did confirm that it was a "big budget"​ product. The wine has already been launched in the German market, backed by a print, cinema and TV advertising campaign.

Golden Kaan will have its own dedicated sales team, but distribution will be carried out by whichever of the two partners has the strongest network in each individual market. Sales targets are for 200, 000 cases in the first year.

A premium offering, Golden Kaan Winemakers Reserve, featuring a Chardonnay and a Cabernet Sauvignon, will be launched later in the year.