At a time when wine sales seem to be stagnating, an unexpected segment is experiencing a renaissance: private label wine. Consumers, increasingly aware of quality and variety, are discovering that these wines offer excellent value for money, thus challenging the traditional perception that recognized brands are synonymous with excellence.
The rise of private labels
According to recent data, private label wine sales have experienced significant growth in recent years. This increase is partly due to consumers’ search for higher quality products at more affordable prices. Retail chains, noticing this trend, have responded by expanding their private label wine offerings, introducing more premium and sophisticated varieties.
The benefits of private label wine:
- Greater control for retail chains: By developing their own brands, retailers have greater control over shelf placement, pricing, and profit margins.
Protip: Often, exclusive and private label brands have preferential placement in stores, with retailers highlighting this with information such as “winery direct” or “sourced & certified wines,” etc. - Value for money: Private label wines offer excellent value for money, allowing consumers to enjoy a good wine without spending a fortune.
Protip: The origin of the opportunity lies in the fact that some wine producers, with stocks of excellent unsold wines, are willing to offer them at attractive prices. This allows retailers to acquire high-quality products with significant profit margins, while still keeping prices competitive for the end consumer. - Variety: The range of private label wines is growing, with a wide variety of styles and regions to satisfy all palates.
Protip: This private label phenomenon is so widespread that in countries like Brazil or Mexico, there is also a special focus on local wines that are very well received by consumers. In this regard, retailers, importers, and producers need to stay very alert to the constantly changing tastes of the end consumer.
Example: In Brazil and Mexico, our Casa Donoso Bourbon Barrel Aged line has emerged as an innovation in the wine market, quickly being accepted and experiencing a sales growth significantly higher than that of traditional wines.
The challenge of storytelling
One of the biggest challenges faced by private label wines is building an appealing narrative that competes with national brands. While recognized brands invest large sums of money in marketing and advertising to create a strong, emotionally connected brand image with the consumer, private label wines often lack this dimension.
However, experts say it is possible to overcome this challenge. By understanding their target audience and developing labels and marketing materials that resonate with them, retailers can create compelling stories around their private label wines.
Hospitality Series Chardonnay
An example of this trend is the Hospitality Series Chardonnay wine. This brand has managed to stand out in a saturated market thanks to its focus on quality and accessibility. By selecting grapes from renowned vineyards and subjecting the wine to a rigorous production process, Hospitality Series Chardonnay offers an exceptional taste experience at a very competitive price.
Additionally, the label of this wine evokes a sense of hospitality and enjoyment, inviting the consumer to share a bottle with friends and family. By building a narrative around the idea of sharing special moments, Hospitality Series Chardonnay has emotionally connected with its target audience and become a popular choice among consumers.
Private label wine is experiencing a renaissance thanks to the growing demand for quality products at affordable prices. Retailers who have capitalized on this trend have managed to position their private label wines as an attractive alternative to national brands. However, to succeed in this market, it is essential to build a convincing narrative and develop labels that resonate with consumers.
