It's a case of convenience

Cardmember Wines GM Mike DeGaris says his club offers an easy way to try different wines. Picture / Brett Phibbs

It may not be the done thing to trot out the chateau du cardboard at your next dinner party but the increasing number of subscribers to wine clubs shows getting someone else to select your vino is just fine these days.

The marketing and advertising push behind New Zealand's biggest wine club has reaped benefits for the company behind it - Cardmember Wines.

"It's the convenience factor we push.

"It's an easy way to try lots of different wines and you can easily return any you don't like so it's all guaranteed," said general manager Mike DeGaris.

Cardmember Wines is the largest consumer direct merchant for home-delivered wine in New Zealand.

DeGaris said members included people who signed up at the club's debut in 1989. The club produces 65 per cent of the wine it sells (DeGaris is a winemaker) and the rest from other vineyards.

The company sells an equal split of red and white wines, which goes against the national consumption split of 35 per cent red, 65 per cent white.

The business operates its own branded wine clubs (New Zealand Wine Society), as well as clubs and wine arrangements for corporations such as Bank of New Zealand, American Express and the Automobile Association.

"The sophistication of today's consumer now means that customers go to a bank for more than just financial transactions and interact with airlines for more than just flights," DeGaris said.

"Brand loyalty means that customers expect their favourite companies to also provide them with access to their favourite lifestyle enhancers. Wine undoubtedly is one of these."

Over the last 10 years the wine club concept has flourished. Cardmember Wines sells directly to more than 60,000 consumers. Over the last 12 months it also added 12,000 new members.

The swelling membership was reflected in the 10.2 per cent growth in case sales from 2003 to last year.

Comparing that increase with a New Zealand industry increase in domestic wine sales of about 0.6 per cent in the same period, DeGaris said it was easy to see which segment of the market showed real growth.

Cardmember Wines operated wine arrangements for nine businesses, respecting each company's brand identity and ensuring each wine club maintained its own image.

"Wine clubs are viewed as not only adding value to companies' brands but also as a way of increasing our revenue through a negotiated commission on sales," DeGaris said.

Also, the growth in quality and reputation of Australian and New Zealand wine meant more companies wanted to associate themselves with quality products.

"We predict that, as more emphasis is placed on customer loyalty in order to reduce attrition and maximise performance, wine clubs will take a more prominent role in major company's customer benefits," he said.

Cardmember Wines is the New Zealand division of the Fosters Global Wine Club Group.

The global business is the world's biggest merchant of home delivered wine, with more than 1.2 million members and selling more than 3 million cases of wine a year.

Wine Club businesses are established in 11 countries, including Australia, France, Holland, Germany and the United States.