Private Label Brand
Private label brand, the best choice during these times.
Wine retailers have many responsibilities, one of which is to source wines.
Due to industry consolidation, wine distribution is controlled by mega-companies. These companies sell large quantities of wine to thousands of accounts.
Their businesses are about volume, not about choice or working with accounts to help them source wines to fit their businesses goals.
Mega-wholesalers basically force retailers to sell their customers something they don’t want to. Consumers are tired of boring wines these companies push.
Retailers need other options.
Creating a private label wine program is an option that works.
It allows a retailer to offer its customers a unique and higher-quality wine product at lower cost.
Another benefit is that the retailer can promote their own brand, and potential make a higher margin.
Better products, lower prices, higher margin and brand building are all strong reasons for considering a private label program.
Many restaurants are noticing that their private label wines are some of their customers’ favorites. Customers are developing loyalty to these brands.
Premium wines that deliver value are harder to find from large distributors. Through a private label wine program, retailers can offer value-priced premium wines that equal to higher priced branded products.
Benefits of a private label wine program include:
Developing the perfect wine brand that reflects your business that are appealing to your customers.
Meeting customers desires in terms of quality and price.
Offering customers new and different wines.
Having an exclusive wine that the competition can’t offer.
Growing market share while building your brand.
Having a flexible wine portfolio that is adaptable over time.
Obtaining higher margins.
Building a long-term relationship with the supplier for mutual benefit.
It is fast and easy.
Developing a private label wine program is not as simple as choosing from a list of wines and labelling the bottle. Consider the following:
Choose a supplier that can consistently meet volume and quality requirements.
Understand your customer’s preferences so you can offer wines they enjoy.
Determine the price point that increases your profits while providing better customer pricing as compared to branded products.
Get the quality/value proposition correct. Missing the mark results in higher costs and lower revenue.
Determine appropriate purchasing and delivery policies.
A good supplier will partner with the retailer to determine the right portfolio of wines. For example, restaurants may want wines that go with food and retail stores may want to promote unusual grapes or blends to encourage experimentation.