The ultra-fashionable â€“ and ultra-expensive â€“ jeans label Diesel has launched itself into the wine business.
Renzo Rosso, founder of the label, presented three new wines at Vinitaly earlier this month. At over £100 a bottle in restaurants, they will be as reassuringly pricey as a pair of Diesel jeans.
Rosso bought a 100ha farm in Marostica in Vicenza, Veneto 12 years ago. It has over 5 ha of vineyards, as well as olive orchards, from which olive oil is also sold, under the Diesel Farm name.
1. Fashion-label Product Diversification - Fashion companies diversifying their product offerings to include high-end beverages, like Diesel's new wines, which in turn caters to their loyal customer base and expands their market.
2. Celebrity Branding in Wines - More celebrities and influencers entering the wine industry with personal branding of high-end wines and spirits, following in the footsteps of Diesel's founder Renzo Rosso's successful launch of Diesel wines.
3. Luxury Wine Pricing - The trend of ultra-luxury pricing for wines and spirits aimed at high-end consumers and collectors, like Diesel's new £100 a bottle wines, may open doors for new high end wine brands looking to break into the market.
1. Fashion - Fashion brands, like Diesel, expanding their product portfolios by venturing into new industries such as wine to generate brand visibility and provide new channels for their customers to access their brand.
2. Wine and Spirits - The wine market is expanding into new segments with high-end and celebrity-branded wines, opening opportunities for new brands and influencers to enter the market with premium offerings.
3. Agriculture - Companies that own large farmlands, like Diesel, can use their assets to expand into new industries such as wine and olive oil production, showing how diversifying business offerings can positively shift a companies' growth strategy from current operations.