XANADU Wines made its first internal cutbacks this week as part of a cost saving strategy expected to reduce operating costs by $1.5 million annually, according to managing director Andrew Moore.
While the company spent previous years emphasising its brand, the group marketing director role held by Kelly Renouf for three years has been shed from the company and several other positions are expected to be made redundant in coming weeks.
Mr Moore said Ms Renouf’s position would be the most senior role to disappear.
While the company had a strong brand focus, he said, the management team had a strong sales and marketing background.
Mr Moore said that the company’s marketing budget would be reduced and that other internal cost saving measures would be introduced.
“We have spent a lot of money building up the brand but this year is the year where we can pull back from that,” he said.
“We will be looking at the way we produce things and look at ways to reduce costs.”
Mr Moore said a further five or six positions would be axed in the coming weeks but would not reveal any further details.
The company was still pursuing its push into the UK and America and the recent appointment of distributors was a positive step, he told WA Business News.
Drinks Americas will market and distribute Xanadu’s Normans and NXG labels into the US market and Brand Phoenix will market the labels in the UK.
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