The recent popularity of label wines is an important trend that has important implications for anyone involved in the wine and spirits industry. Continue reading “Unlock New Revenue Streams With Bulk and Private Label Wines”
It can be hard to find the time in our schedules to take two days out to attend an industry conference, but the chance to get on top of key bulk wine and spirits trends at IBWSS in San Francisco could actually save you not only time but money further down the line.
Private label wine in a restaurant? Yes, it does not sound very appealing, but done right it can be extremely good value both for the operator and the customer.
Attend IBWSS show in San Francisco to learn all about Private Label and Bulk Wine Business
Wineries seeking to grow their businesses can also focus on relationships with their retailers by offering Private label / Offering Store Brands to its key retailers.
So says Sid Patel, owner of the Beverage Trade Network, an industry organization focused on connecting importers and distributors with market-ready brands poised for growth and the host of International Bulk Wine Show in San Francisco and London.
“You ask your buyer ‘where is the gap in your store for you to make a profit?’” Patel explains. “And then, by hook or by crook, you get that product in hand.”
Private label refers to a brand that is made for and sold exclusively by a retailer or restaurant. It may carry the name of the retailer or a name that the retailer designates. The Kirkland brand for retail giant Costco is a good example.
Patel believes that some wineries are held back by the notion that they might be “risking” their brand through outsourcing the product or by the development of a private label for a particular client. But, as he points out, retailers need skus to fill their gaps, which offers incredible opportunities for wineries looking to expand.
“That retailer is still going to make a private label. You want to be their primary choice for it,” Sid Patel advises.
Beverage Trade Network is hosting the biggest private label and bulk wine show in the USA. The trade show and conference this summer is aimed at bringing producers and suppliers from around the world together for two days of extensive networking that will explore different strategies on leveraging the private label option.
The International Bulk Wine and Spirits Show (IBWSS) will be held July 26-27, 2017 in San Francisco, California.
More than 80 exhibitors and between 1,500 and 2,000 trade professionals are expected to gather to discuss such topics as: “ Consumers Love Bulk Wine: Emerging Techniques for Navigating Fine Wine Obstructions in the Distribution Channel;” “What to Consider in Your Private Label Bulk Wine and Spirits Distribution Agreements;” “From Plonk to Cult Wines, Myths about the Bulk Wine Industry Cleared;” and “Classic or the Kitchen Sink? Blending for Quality and Style.”
The keynote speaker IBWSS is Robert (Bobby) P. Koch, President and Chief Executive Officer of the Wine Institute, a public policy advocacy organization representing 1,000 California wineries and affiliated businesses that are responsible for more than 85 percent of the nation’s wine production and 90 percent of US wine exports.
“This conference and trade show is a great opportunity for wineries to leverage their business into different categories and add revenue to their existing model,” Patel affirms.
For more information on private label options and IBWSS conference registration, go to: www.ibwsshow.com.
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San Francisco continues to be one of the world’s most important destinations for leading players in the wine industry, so it’s no surprise that a major conference dedicated to the private label and bulk trade is making its way to the city on July 26-27.
In the short Q&A below, Sid Patel, CEO of the Beverage Trade Network (BTN), explains why his organization is bringing the event to San Francisco for the first time and why the private label and bulk trade has become such an important market segment in the United States.
Why did you decide to bring the International Bulk Wine & Spirits (IBWS) Show to San Francisco?
On a global basis, and in the United States the private label and bulk trade market are growing in importance. We’ve already seen a lot of enthusiasm by supermarkets, restaurants and hospitality businesses to create their own private label brands, as well as by smaller wineries to get into the bulk trade.
San Francisco was a natural choice for us when we were thinking about where to host the conference. The city has geographical access to some of the most important wineries and wine-growing regions in the country, including many wineries that are major players in the private label and bulk trade market.
We’ve already had a phenomenal response to other events that we’ve hosted for the wine industry, so expanding our presence to San Francisco just made a lot of sense. When we first came up with the concept for the IBWS Show, we wanted it to be a place where buyers and sellers could meet and do deals. We’ve seen that buyers want to explore as many options as possible when they select their private label and bulk supply partners.
California is one of the leading private label markets, so it made sense that we could provide the platform to connect these buyers to top class suppliers from all over the world.
What can exhibitors and visitors expect this summer in San Francisco?
Visitors will get a chance to meet wineries and distilleries who offer private label and contract manufacturing options, bulk wine suppliers from all over the world, bulk spirits suppliers and contract bottlers.
The idea of the show is that a visitor can walk in with an idea or a concept and can meet all the parties involved in developing a private label brand from scratch.
You will literally be able to set up a private label business with the contacts, information, and education that you will get at the show. So, for example, you will meet contract bottlers, you will meet wine and spirits suppliers and you will meet legal experts who can guide you with any questions you might have.
Exhibitors will get a chance to meet buyers looking to develop private label brands. Exhibitors will also meet wineries and distilleries looking to meet their demand for bulk wine and spirits.
What’s the target audience for the IBWS show?
The show is relevant to custom crush suppliers, distilleries, and wineries who could branch into providing these facilities in addition to bulk wine and spirits and buyers from every tier of business who want to explore these services. We’re really looking to show people how the private label and bulk trade business is starting to become a bigger and bigger component of the U.S. wine industry.
It is important to educate suppliers about the advantages of offering such services and how it helps distilleries and wineries grow their bottom line and build relationships. It is the time we accepted this new trend, which is really influencing the future of the wine industry.
Why did you come up with the concept of a conference around the bulk wine market?
The show is the only one of its kind where bulk wine, bulk spirits, and private label businesses can meet and do business in the same place. We wanted to create a show that encourages bulk providers to do business openly. For many reasons, the bulk trade has been flying under the radar of many wine industry participants.
We want to clarify a lot of myths, we want to share case studies of wineries that have their own brands and at the same time develop private label brands for their own customers.
The conference topics will help wineries and distilleries understand how they can optimize their wineries by offering such services, it will also show buyers what to look for in their supply partners and it will educate the trade on myths about bulk wine and spirits.
What issues will be covered at the IBWSS in San Francisco?
We have an exciting agenda lined up in San Francisco. To offer a really broad view of the industry, one of our speakers will be covering the major trends that are shaping the global bulk wine, spirits and private label market. And, for participants who really want to drill down on the specifics, we’ll have lawyers talking about the major points that need to be included in any private label or bulk wine agreement.
We’ve really tried to cover all the different angles. For example, one session hosted by Nat DiBuduo will focus on how current grape demand and supply affects market participants. And we’ll have a noted wine industry judge talk about blending bulk wines to create a quality blend. And, of course, we’ll cover how retailers and restaurants can grow their private label brands.
Why do you think the bulk wine will have such a big impact in the coming years?
Retailers, importers, distributors and buyers want to sell brands that they can control. There are obvious reasons (profit, the stability of supply, brand equity) for this. This means they have started doing backward supply management where they plan their inventories and work with contract bottlers in a much more efficient way. This also means buying in bulk and bottling it locally.
Any particular examples of how bulk wine is already being used effectively?
So far we have seen wineries using bulk wine that is in excess used in such channels where wineries can offer one-time deals to restaurant chains and similar businesses. Some good quality wineries are also creating blends by getting involved in buying bulk wine and blending.
What can you tell us about Beverage Trade Network?
Beverage Trade Network was founded as a response to the underlying challenges that face beverage industry professionals on a daily basis. With our integrated set of tools and services for wineries, breweries, distilleries and brand owners, our members can easily attract and engage with potential business partners from around the world.
Beverage Trade Network (BTN) successfully connects wineries, breweries, distilleries and brand owners with international importers, distributors, brokers and beverage industry professionals. One of the main tools offered by BTN is its education section under BTN Academy, which is full of practical insights and how-to articles and webinars.
For more information about visiting or exhibiting at the International Bulk Wine & Spirits Show (IBWSS), please contact firstname.lastname@example.org.
When unlabeled bottled wine is transferred among two or more bonded wine premises for aging or labeling, the bottler must provide a copy of the approved Application For And Certification/Exemption of Label/Bottle Approval (COLA) TTB Form 5100.31 under which the wine was bottled. The transfer in bond record which accompanies the wine must be accurate and specific, and the label information record for the wine must fully support any claims made on the label to be affixed to the wine.
The responsibility for transferring accurate label information is not that of the producer alone; it is the responsibility of all holders of the wine from the time it is produced until it is removed from bond for consumption or sale.
Here are guidelines for the various parties that may be involved when unlabeled bottled wine is transferred among bonded premises:
What are the responsibilities of the Producer?
The producer of the wine must ensure that the transfer in bond record required by 27 CFR 24.309 contains accurate and specific label information for all bulk wine shipped in bond (or tax paid) to another premises for bottling. This allows the bottler to apply for a COLA and ensures that the product label is correct.
What are the responsibilities of the Bottler?
The bottler obtains a COLA which can be substantiated by the transfer record which accompanied the wine from the producer. Unless the wine will be bottled at a tax paid wine bottling house, the bottler will make sure that the wine to be bottled is received and maintained on bonded (not tax paid) premises. The bottler maintains records in accordance with 27 CFR 24.308.
If the bottler transfers unlabeled bottled wine to another bonded premises for labeling, the bottler must send the wine in bond (untaxpaid) with the COLA under which the wine was bottled. If a different product label will be affixed, the bottler must obtain a correct COLA, and forward it to the premises where the label will be affixed. The transfer in bond record that accompanies the bottled wine must contain accurate and specific information which substantiates the product label, as specified by 27 CFR 24.309. However, if unlabeled bottled wine is transferred to another bonded premises for aging only, and will be subsequently returned to the bottler for the affixing of the product label, the COLA does not have to accompany the shipments.
To reiterate, an approved label which accompanies the wine must carry the minimum label requirements, but it might not be the label eventually affixed to the product. The label used to bottle the wine is sometimes referred to as the “generic” label. The bottler may apply for another COLA for a product label with specific label claims, as long as the claims are substantiated by the label information record requirements of 27 CFR 24.314.
What does the Labeller receive from the Bottler?
The person who will affix the product label receives the unlabeled, untaxpaid bottled wine, the COLA for the product label to be affixed, and the transfer in bond record (27 CFR 24.309) which contains accurate and specific information which substantiates the label claims.
Only the bottler of the wine may apply for a COLA. If the owner of unlabeled bottled wine wants to label the wine with a label other than that which accompanied the wine, the bottler must be contacted, and the bottler must work with the owner to obtain an approved product label which is fully substantiated by the label information record for that wine.
What if the bottler is unable to provide a COLA?
If the bottler of the wine is unable to obtain label approval for the wine to be labelled, the wine may only be labeled if it is dumped to bulk and re-bottled. It may be re-bottled when an appropriate COLA is obtained by the bottler. The label may not contain any information which is not fully supported by the label information record for the wine.
What is the responsibility of the person who removes the wine from bond?
If the labelled wine is transferred in bond to another bonded wine premises for taxable removal, it must be accompanied by the transfer in bond record (27 CFR 24.309) which contains accurate and specific information which substantiates the label claims.
The person who pays the tax on the wine is the qualified proprietor of a bonded winery or bonded wine cellar, and not a wholesaler, wine broker, agent, negotiate, retailer, consumer or, necessarily, the actual owner of the wine. Bottled wine may not be removed from bond (i.e., tax paid) without a COLA and an approved product label being affixed. This requirement is given in the wine regulations at 27 CFR 24.257(a) which states in part: “The proprietor must label each bottle or other container of beverage wine prior to removal for consumption or sale.”
How long the records must be kept?
All records must be retained for a period of not less than three years from the record date or the date of last entry required to be made in the record, whichever is later.
However, TTB may require records to be kept for a period of not more than three additional years, if deemed necessary.
International Bulk Wine and Spirits Show (IBWSS) which is an annual show in San Francisco that caters to the US bulk wine, bulk spirits and private label buyers now also comes to London. IBWSS London will be an annual event exhibiting global bulk wine, bulk spirits and private label service providers. The IBWSS London will give European supermarkets, retailers, restaurants, wineries, distilleries and other buyers an opportunity to source bulk wine and spirits in one place, and meet private label suppliers.
Event Date: Jan 24-25, 2018
Location: The Royal Horticultural Halls Lindley Hall, London
“The bulk segment holds the largest market share in the wine and spirits industry,” said Sid Patel, CEO of Beverage Trade Network. “Bulk trading is an age-old trade between producers, but we are now seeing the business take on a very impressive position across the industry. The International Bulk Wine and Spirits Show aims to give the bulk trade a truly dynamic trading platform where buyers can confidently conduct business with the world’s most reputable suppliers.”
As the central exchange for European trade, London is positioned perfectly for the fair. The city has long acted as the European trading post between the northern and southern hemispheres. With the launch of IBWSS, international bulk suppliers from some of the world’s most important markets will have unprecedented access to the European market.
For more information, press releases and launch discount for exhibitors, please fill out interest form here: https://goo.gl/forms/zrHJ8461hV0ZFRi32
About Beverage Trade Network
Beverage Trade Network (BTN) is a leading online marketing and B2B networking platform servicing suppliers, buyers and beverage professionals in the global beverage industry. BTN provides a selection of sourcing solutions for importers and distributors as well as an extensive range of marketing and distribution services for international suppliers. BTN also runs a line-up of b2b trade shows around the world. For more information about BTN, please visit www.beveragetradenetwork.com
About The International Bulk Wine and Spirits Show
The International Bulk Wine and Spirits Show (IBWSS) is an annual trade show and conference, open to trade professionals only, that takes place takes place in London, UK and San Francisco, CA. IBWSS exhibitors are wineries and distilleries looking to sell bulk wine and spirits, producers and negociants who offer contract manufacturing / private label programs and wineries / distilleries / importers who have one time excess stock to clear. IBWSS buyers are other wineries and distilleries looking to meet up their demand, Importers, Retailers and Distributors looking for private label programs, negociants who are looking to meet the growers and producers.
2018 International Bulk Wine and Spirits Show – Exhibitor Registration (London) Now Open Register Today!
Andy Crossan, consumer insight director at Kantar Worldpanel told db that despite the challenges facing still wine from other drinks, especially sparkling wine and the booming popularity of gin, premium own labels had made strong gains in the latest 12 week-period as consumers trade up from cheaper branded lines and private label tiers.
“Premiumisation is a major theme in alcohol right now,” Crossan told db.”Still wine continues to face challenges from competing sectors like sparkling wine and gin, which have made significant gains from shoppers switching out of the sector. However, there are promising signs as premium own label still wines gain more traction with shoppers in this vital period running up to Christmas.”
He highlighted that in the 12 weeks to 4 December, premium own label bottles – wines over the £8 price mark – had attracted 440,000 more households than in the same period last year.
“Shoppers returning to the still wine aisles have traded up from cheaper branded and private label tiers to these more premium options some 700,000 times,” he said.
One of the key drivers of this was UK retailer Mark & Spencer, he noted, which had seen a resurgence at this price point “Just under half of still wine volume for the retailer has come from bottles over £8 in the last 12 weeks – up from 30% this time last year and taking shopper numbers within this tier to an all-time high of 1.1 million households,” he said.
“Of the big four, Tesco and Morrisons have seen penetration increase in premium private label, as has Aldi, which continues to expand its premium offering and appeal to an even wider range of shoppers.”
Earlier this week the market analysts predicted strong growth of top tier own label lines across the board for Christmas.
M&S recently bolstered its range fine wines ahead of Christmas, after reporting “phenomenal” sales growth of over 40% sales growth in its fine wine range, and is set to boost the number of Simply Food outlets by 200 in a major two-year overhaul of its store estate.
In September, Tesco added more than 20 new lines to its own label range, which it said saw “significant” growth over the summer. The retailer has invested in its premium own-label range this year, with a successful Soho pop-up to promote its finest* range.