TL;DR
Private-label wine is gaining popularity, with sales and unit purchases increasing yearly. Retailers are expanding their own wine offerings to meet growing consumer interest. Small retailers can learn from this trend and consider adding private-label wine to their inventory to attract customers seeking high quality and value.
Raise a glass to the growing trend of private-label wine! According to recent data from the Private Label Manufacturers Association (PLMA), sales of store brand chardonnay, merlot, and other varietals are up 9.1% to $52.2 million for the 52-week period ending in June. Moreover, unit sales of private-label wines have also seen an 8% increase during this time.
Noticing the rising consumer interest, retailers have been expanding their own private-label wine collections. For instance, Gelson’s Markets in Southern California added four new bottles to its Napa Valley collection, while Albertsons introduced its Vinafore private-label wine assortment.
Even convenience store chain Circle K surprised many by launching a line of private-label wines in 3,000 stores, offering options at various price points.
The appeal of private-label wine lies in its high quality and excellent value, which resonates well with consumers. Peggy Davies, President of PLMA, highlighted that the growing market for private-label wine and spirits is reflected in their increasing dollar and unit sales.
This trend presents an opportunity for small and independent retailers to attract customers seeking value and unique options. By adding private-label wine to their inventory, retailers can meet the growing demand for quality and cost-effective wines.
The Private Label Trade Show, scheduled for November 12-14 in Chicago, will further showcase private-label wine and spirits, offering retailers a chance to build their beverage alcohol assortment with domestic and international wines, including Fair Trade and organic options.
Overall, store brands, including private-label wine, have increased, outpacing national brand sales. In the first half of 2023, dollar sales of all store brands increased by 8.2%, compared to a 5.1% gain for national brands. Private-label sales also saw a significant 16% jump, amounting to about $17 billion.
With the beverage category experiencing the largest sales boost, retailers, including small businesses, can capitalize on this trend by offering private-label wines that cater to their customers’ tastes and preferences.
