Who would have thought that private label wine, once associated with low-cost bottles and generic flavors, would become a key player in the wine world? Today, major supermarket chains are investing in high-quality private label wines, crafted by renowned winemakers and using top-tier vineyard grapes that directly compete with well-known market labels.
More than just an affordable product
Private label wines, exclusive to a specific store or supermarket chain, have experienced exponential growth in recent years. Unlike national brands, these wines are specifically made for the retail market, allowing them to offer personalized, high-quality products at more competitive prices.
Why this trend?
- Increased grape availability: The oversupply of grapes in various wine regions has enabled retailers to access quality raw materials at lower prices.
- Higher profit margins: Private label wines often have higher profit margins for retailers, allowing them to invest in greater quality.
- Demand for premium products: Consumers are increasingly willing to pay more for high-quality products, including wine.
- Industry innovation: Retailers aim to differentiate themselves from the competition by offering exclusive products to their customers.
The Toral Wines experience: a success story among private and exclusive brands
What is the difference between private and exclusive brands?
Toral Wines creates and produces exclusive wines, which are only available in their stores. On the other hand, we produce other brands for CVS in the United States, which are high-volume brands sold exclusively in that chain. For these exclusive brands, we produce the wine and also develop the labels.
For private brands, we create custom wines for importers and distributors who want their own label in the market.
Recently, we developed Crazy Love for Fresh Market, a brand aimed at the premium segment that reflects our strategy of continuous innovation. We maintain a dynamic collaborative approach with producers to create competitive products tailored to market demands.
How have private brands performed in other countries vs. the United States?
In Europe, private label wines are already a well-established reality. Countries like the United Kingdom, Germany, the Netherlands, and Switzerland have more than 40% of their wine sales concentrated in these labels.
In contrast, the U.S. market has been slower to adopt. Complex regulations, state restrictions, and a three-tier distribution system have hindered their expansion.
The numbers speak for themselves. According to the Private Label Manufacturers Association and Circana, sales of private label wines increased by 9.1% in the 52 weeks ending June 2023, while overall wine sales dropped by 1%.
Hospitality Series Cabernet Sauvignon: an example of innovation
The Hospitality Series Cabernet Sauvignon was originally developed and inspired as an exclusive brand for the Hotel Puerto Viello Llico in Chile. This brand is a clear example of this trend. Crafted with high-quality grapes and following the highest production standards, this wine offers a sophisticated tasting experience at a very competitive price.
With a profile that combines complexity and accessibility, the Hospitality Series provides consumers with a premium experience without the need to spend large amounts of money. Its carefully selected grapes and winemaking process make it an emblematic example of how supermarkets are redefining the wine market.
A similar exclusive brand we developed is the Cvi.Che105 line for the famous Peruvian entrepreneur and chef, Juan Chipoco.
The future of private label wine
The future of private label wine looks promising. As consumers become more demanding and seek new experiences, private label wines will continue to gain ground. Retailers, for their part, will keep innovating and offering increasingly sophisticated and personalized products.
The next time you visit your supermarket, don’t hesitate to explore the private label wine section. You might be surprised to discover excellent-quality wines at very attractive prices. The era of private label wine has arrived.
Source:
Wine Enthusiast
