While the wine market contracts, store brands shine brightly.
In a landscape where wine sales are experiencing a decline, an unexpected light emerges from supermarket shelves: private label wine. Experts gathered at the Private Label Manufacturers Association (PLMA) Fair in Chicago highlighted this phenomenon, noting growing consumer interest in these options, traditionally considered secondary. Are we witnessing a paradigm shift in consumer taste?
At Toral Wines & Spirits, we’re seeing a clear trend: private label wine sales in U.S. supermarkets are on the rise, while national brand sales continue to decline. Store-brand wines are gaining ground, with private labels now outpacing national brands in both growth and market share. This shift is driven by factors such as rising inflation, consumer demand for better value, and retailers’ focus on higher-margin offerings.
The Secret Impulse: Solid Growth and a Thirst for Quality
The numbers speak for themselves. According to data from research firm SPINS, sales of private label alcohol have climbed an impressive 12% in the last year, with a 15% increase so far this year and a notable 23% compared to two years ago. But the surprise doesn’t end there. Simon Cutts, senior director of retail partners at SPINS, reveals a fascinating trend: consumers are not only looking for economical options but are also leaning toward higher quality private label wines, specifically in the $15-20 price range. “Maybe it’s, I’m drinking less wine, but I’m going to drink better wine,” suggests Cutts, evidencing an interesting “trading up.”
Retailers on the Attack: Betting on Their Own Labels
Private label wines, also called store label wines, are planned from the beginning to be exclusive to the retailer that sells them. Made from a wide array of varietals and grown in diverse appellations across the globe, these bottles are made specially for store brands. Some of these brands are, “River & Vine” in Winn Dixie, “Qué Bueno está” in Navarro, “Sunshine Bliss” in Circle K, “Kirkland” at Costco and “Charles Shaw” at Trader Joe’s, you can’t buy them anywhere else. The Sunshine Bliss was introduced from the inception of the project to 3,000 stores with a clear price point $8 retail. “Que Bueno Esta” produced by Toral Wines in partnership with Triumph Brands was introduced to Navarro to all their stores in Florida as well for the Spanish demographic.
The rise of private label wine started more or less just before the pandemic. Walmart and its Sam’s Club subsidiary debuted a couple of brands, including Member’s Mark in 2017, costing as much as $20. Midwest grocery chain SpartanNash added several California wines to its Finest Reserve by Our Family premium line. And Albertsons’ Vinafioré Collection, with wines from France, California and New Zealand, is priced from $15 to $22.
Retailers have taken note of this growing appetite. Chains like Gelson’s Markets in California have expanded their collections of Napa Valley wines, while Albertsons has introduced its own Vinafore and Bee Lightly lines. Even the convenience store chain Circle K joined the trend in 2023. Taylor Rausch, wine and spirits category manager at Albertsons, explains the key advantages: greater control over the brand, shelf positioning, price, and margins. However, he also acknowledges the challenge of differentiating from established national brands.
The Key to Success: Strategic Merchandising and Consumer Connection
Why Private Label Wines Are Rising
- Higher Margins for Retailers: By bypassing traditional wine distributors or importers, retailers can source directly and capture more of the profit.
- Consumer Trust in Store Brands: Chains like Trader Joe’s and Costco helped pave the way with cult favorites like Two-Buck Chuck and Kirkland Signature wines. As consumer trust in these brands grew, it made higher-end private label wines more viable.
- Premiumization on a Budget: Private label wines often look and taste premium—but cost less. That’s especially attractive to younger wine drinkers who are cost-conscious but still seek quality and design.
- Retailers Becoming Curators: Instead of just stocking shelves, supermarkets are starting to act more like wine curators, using private labels to express a point of view on wine regions, varietals, or even sustainability.
Examples You Mentioned
- Member’s Mark (Sam’s Club/Walmart): Aimed at the value-conscious customer, but with enough variety and price tiering to feel like an upgrade.
- Finest Reserve by Our Family (SpartanNash): Regional chains like SpartanNash are getting more creative, offering California wines under an upscale brand to build loyalty.
- Vinafioré (Albertsons): A good example of a private label reaching across countries (France, California, New Zealand), which adds global credibility and variety to their shelf.
What’s Next for Private Label Wine?
- More Country-of-Origin Expansion: Look for retailers to go beyond France and California into Chile, South Africa, or Portugal for quality-to-price ratio.
- Sustainability and Storytelling: Labels that highlight organic, biodynamic, or carbon-neutral winemaking will rise. Consumers care where the wine comes from and how it was made.
- Technology-Enhanced Shopping: Smart labels (QR codes, AR labels, apps) will help private labels stand out on shelf and tell a story that connects with consumers.
- Club & Loyalty Integration: Expect more wine club models tied to these brands, where loyal shoppers can access “member-only” vintages or curated seasonal boxes.
“Exclusive but not unreachable”: A premium private label partnership with a U.S. retailer that focuses on Latin American winemaking excellence—like a Chilean wine aged in rum barrels from Costa Rica. It’s exotic, high-concept, and retailer-friendly.
Looking to launch your own wine brand? Toral Wines & Spirits partners with retailers and importers to create premium private label wines—from vineyard to shelf. Let’s build something uniquely yours. Contact us to get started. [email protected]
D de Casa Donoso: An Example of Quality That Could Inspire Private Labels
In this context of growing interest in quality wines, even under the private label tag, it’s interesting to observe examples like D de Casa Donoso. This premium wine from Viña Casa Donoso in Chile demonstrates how dedication to excellence and careful production can result in a product that captivates consumers.
D de Casa Donoso, a blend that often combines the best of varieties such as Cabernet Sauvignon, Carmenere, and Merlot from the Maule Valley, offers a rich and complex sensory experience. Its intense aromas of black fruits, spices, and the elegance contributed by oak aging, along with its structure and persistent finish on the palate, position it as a high-end wine.
While D de Casa Donoso is an established brand with its own narrative and prestige, its focus on quality and terroir expression could serve as inspiration for retailers looking to develop their own premium wine lines. Just as Casa Donoso focuses on grape selection and winemaking care to create a distinctive wine, private labels have the opportunity to build a reputation based on quality and offering an attractive value proposition for that consumer who, as we’ve seen, is willing to explore higher category options, even under a store label. The key lies in conveying that quality and building a story that resonates with the demanding palate of today’s consumer.
