Brl Hardy

Evolving Strategy

* Millar and Davies wanted to change the connotation of “quality exporter” in “international wine company”.

* Meanwhile, back at HQ, Millar was pushing a new vision of BRL Hardy as the first truly global wine company with worldwide product access backed by global marketing and distribution capabilities.

* Naturally, Davies believed that in order to accomplish this vision, HQ would need to become the “global brand owners.” He believed that if too much control was given to local offices, then BRL Hardy will lose control of their brands and never be able to achieve the goals of their new global strategy.

* Naturally, Carson disagreed and the “war” between Davies and Carson started. Millar didn’t intervene, stating that “with 70% growth, we could support the tension.”

• The 1997 Watershed Decisions

Based on excellent performance, Carson was appointed to the Chief Executive of BRL Hardy Europe in 1995.

The Outsourcing Ventures

* Carson realized that grape harvests were vulnerable to regional weather patterns and diseases, thus, sourcing from several regions was a good way to mitigate this risk.

* He partnered with Caliterra, a Chilean grape grower as a first step.

* Carson partnered with another Chilean grape grower, Jose Canopa y CIA Limitada. After a lot of initial difficulty, the partnership was finally in place by late 1997.

* He also initiated a partnership with Casa Vinicola Calatrasi, an Italian winery.

* He became so interested in this partnership that in 1997, Carson made plans to create a completely new brand “D’istinto,”

* When he relayed these plans to Australian HQ, he stressed how this brand would help offset any Australian grape shortages and would appeal to a very broad consumer base in Europe.

* HQ management, however, was not impressed. They liked the overall branding idea, but they questioned how well the Italian winery partnership would work out in light of the previous partnership...