Frey Vineyards is one of California’s best-known organic producers, whose brand is firmly established among U.S. retailers for its green and sulfite-free wines. Nevertheless, the winery had a booth at the 45th annual Private Label Manufacturer’s Association trade show in suburban Chicago over the weekend.
“We had a successful private label launch this year, and we decided it was time to explore private labels in more detail,” said Ann Weigt, the winery’s vice president of sales. “We see possibilities in private label.”
She was not alone in this. More than three dozen — a record number of producers, importers, and the like — exhibited at the show. Even Bronco Wine Co., whose credits include the legendary Charles Shaw Two-Buck Chuck private label for Trader Joe’s, had a booth, a first for the notoriously private, family-held company. In addition, a seminar outlining the benefits of private label was held in front of an inquisitive, full room.
Private label supermarket wine in the US — which has always lagged behind Europe in market share, quality, and retailer enthusiasm — may be ready to come of age.
Lots of inventory that needs to shift
“Yes, I think it will finally do it,” said Bruce Clugston, the owner of Australian in a Glass, which imports private label Aussie wine to the US and has clients around the country. “The way the business is going, private is one of the best ways for retailers to distinguish themselves from everyone else.”
The difference in that frame of mind these days? The worldwide grape glut, the biggest in almost 30 years, combined with an almost unprecedented drop in demand, especially in the United States, the world’s largest wine market.
“The way the business is going, private is one of the best ways for retailers to distinguish themselves from everyone else.”
Those two developments have dropped bulk grape and juice prices to some of their lowest levels in years, so it was no surprise that retailers from around the world were on the prowl for ways to add private label SKUs to their inventory. The retail attendees included buyers from Target, Albertson’s, and Trader Joe’s.
This enthusiasm for private label has not always been the case. Many retailers, save for an occasional Two-Buck Chuck knockoff, have been reluctant to clutter their shelves with store labels that required more effort to sell than national brands and which didn’t promise better returns. In addition, US alcohol regulation worked against private label, making it almost impossible to buy directly from the producer in most of the country.
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