Spain has a problem: it needs stronger brands but the system is hindering them.
Cross regional brands are not permitted: if you are a strong brand in Rioja – say Campo Viejo – you can’t have a Campo Viejo white from Rias Baixas. While one of the country’s most successful brands Torres has operations in many different regions including Catalonia, Priorat and Ribera del Duero, the Torres name is relegated to second place by the wine’s name like Salmos in Priorat and Celeste in Ribera.
Speaking to Ricardo Aguiriano, Rioja’s director of marketing and communications said: “If you sell a Rioja brand like Faustino, you can’t sell a wine under the same brand name from Ribera del Duero. The top 15-20 DOs (Denominacion de Origen) don’t permit the commercialisation of the same brand.â€
Marques de Riscal is the one exception – it sells wine under its brand in both Rueda and Rioja. Aguiriano explained it had already done its brand extension into Rueda before this law was created.
It is clear the law has been created to protect the brand names and their provenance but it does make things more difficult for those with strong brand names who wish to strengthen their position in an increasingly competitive and branded marketplace.
