Oeneo Redeems its Reputation in the Wine Industry with new “Diam” (2004 - 2005)

PROGRAM OVERVIEW
Hundreds of millions of Oeneo Closures’ new “Diam” cork-based closures have been sold with more orders pouring in from around the world. But the outlook for Diam was not always rosy. In 2001, the company had suffered a heavy blow to its reputation, and wineries (potential customers) were skeptical of the brand, specifically, and of cork products, generally. This is a story of how a company that, under a cloud of suspicion, successfully launched a new product with a bold public relations campaign.

CHALLENGE
In 2004, Oeneo Closures, a leading wine closure producer, was preparing to launch a new wine closure in the U.S. Oeneo had suffered a heavy blow to its reputation when in 2001, its previously best-selling wine closure, “Altec,” was named as being the source of TCA (2,4,6-trichloroanisole) taint, with several wineries taking legal action. TCA is a naturally occurring molecule that, in large enough amounts, negatively affects the sensory enjoyment of wine.  After years of research, Oeneo was preparing to launch a new wine closure, “Diam,” that would directly address Altec’s perceived shortcomings. Oeneo’s new Diam was a breakthrough product developed to supply winemakers with a cork-based stopper that keeps TCA below measurable levels. The lawsuits and negative press about Altec had created an atmosphere of mistrust among wineries. Additionally, a large segment of the wine media were calling for the end of cork wine closures altogether with total replacement by screwcaps.