What Drives Imports and Exports of Bulk Wine?

Georgi’s Conclusion

Exchange rates are part of the explanation. There are other things that influence the wine trade: yields, demand changes, policy (duty drawbacks)

Theory and Reality: Bulk wine 2011-2014

A strong dollar

  •  Increases volume of imports and
  •  Lowers the U.S. dollar price of imports
  •  Reduces volume of U.S. Exports and
  •  Raises prices of U.S Exports for foreign buyers in their currencies

Between 2011 and 2014 the dollar gained about 15.5% against currencies of most wine producing countries (weighted by value of imports).

The dollar gained about 7.5% against the currencies of major wine importing countries (Euro, Pound, Yen, Yuan, HK Dollar) • What happened to U.S. Imports and Exports of bulk wine?

U.S. Total Bulk Imports by Month

Chile, Argentina, and Australia are the major bulk suppliers to the U.S. (87%)

Chile, Argentina, and Australia Bulk Imports as Trendlines

Changes in Bulk Wine Quantities and Price (dollars/liter) from 2011-2014

Thoughts on Bulk Imports and Theory?

  • Bulk imports did increase in 2012 for all countries but then declined in volume the following two years
  • However Chilean and Australian prices fell in U.S. dollars by 18% and 19% and these two countries accounted for more than 50% of bulk shipments.
  • Argentine bulk prices in U.S. dollars per liter remained roughly constant, but volumes declined by 60% from the 2012 high. Not competitive with Chile and Australia?

Despite a strong dollar, volumes of U.S. bulk shipments have remained fairly constant

What Was Happening in the U.S.?

  • Domestic quantity demanded has been increasing (2-4% per year) • Quantity demanded for wine under $7 a bottle has decreased by 7% from 2011 to 2014
  • Short vintages in 2010 and 2011. CA supply did not keep up with U.S. demand.
  • This led to increased bulk imports in 2012, accounting for the spike • 2012 and 2013 were two record harvests in California
  • Southern S.J Valley harvest produced a record 2.48 million tons in 2013, filling tanks and reducing the need for bulk wine imports
  • All this effected California prices and import volumes

Quantity Demanded and California Shipments

Recent California Grape Crush

Drawback, if a factor, encouraged exports (and would tend to raise grape prices)

Conclusion?

  • Exchange rates are one of several factors that effect grape prices.
  • A strong dollar makes imports more competitive with domestic wine, thus lowering grape prices in California (at least for those segments where imports are a substitute)
  • But decreasing U. S. demand for inexpensive wine coupled with large CA harvests also reduces CA prices (supply/demand)
  • We live in a global marketplace. The two strategies for success are: (1) Differentiation (i.e. reduce the potential for substitution)(2) Increased efficiency (out compete foreign producers)

Source : http://aic.ucdavis.edu/publications/CAWGLapsley2015.pdf

Only 20 Spots are left to become an Exhibitor at the 2017 International Bulk Wine and Spirits Show. Register Now and Join the show as an Exhibitor.

Exhibitor

Special Exhibitor Pricing Ends March 31, 2017.

Get 2 Day IBWSS Conference Sessions Pass Included With Your Exhibitor Registration. (Must Book by March 31, 2017).

IBWSS exhibitors are wineries and distilleries looking to sell bulk wine and spirits, producers and negociants who offer contract manufacturing or private label programs, and wineries, distilleries and importers who have one-time excess stock to clear.

WHO ARE THE VISITORS / BUYERS?

Wineries, distilleries, importers, distributors, retailers, national and regional chains, negociants, brokerage firms who are looking for bulk wine, bulk spirits, private label manufacturing and grapes.

WHERE AND WHEN

July 26-27, 2017 – South San Francisco Conference Center

TTB and Sample assistant will be provided to overseas exhibitors. Please email us for more information / questions about sending samples.

LIMITED EXHIBITOR SPOTS AVAILABILITY

The event will offer 80 spots, so space is limited. Exhibitors are encouraged to reserve space early as booths are expected to sell out quickly.

SET UP INCLUDES

The show is a trestle table set up, you will not pay anything extra for chairs and tables and wifi. Your pricing overs ALL costs associated with the show. You are required to bring in one roll-up banner only and can put marketing material on your table.

IBWSS will provide you with the below.
– Tasting Table
– White Tablecloth & Skirting
– 2 Chairs + Ice Bucket + Spittoon
– Glasses will be provided to buyers at the show

Only 20 Spots are left to become an Exhibitor at the 2017 International Bulk Wine and Spirits Show. Register Now and Join the show as an Exhibitor.

Exhibitor

Bulk Wine, Bulk Spirits and Private Label Show Comes To Europe in 2018

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

Bulk Wine - IBWSShow London - 2018

“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.

Registration for The International Bulk Wine and Spirits Show will open to all international suppliers on March 1, 2017. IBWSS London is brought to you by Beverage Trade Network.

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!

Why bulk wine is now so important to the US and global wine market?

Sid Patel, chief executive and founder of Beverage Trade Network and the International Bulk Wine and Spirits Show, gives his take on the US bulk wine market in an article that first appeared in Meininger Wine Business International.

Tim Hanni MW, a wine educator and consultant, says the challenge for international producers who want to enter the US market is “learning the intricacies of how bulk wine business is transacted”. Hanni MW, who has helped to  establish the USA’s first bulk wine trade fair, adds that it’s critical to establish “a network of connections to the brokers, buyers and sellers.”

The process starts with understanding how the US bulk wine market operates.

What is bulk wine?

Bulk wine is defined as wine that is shipped in containers (ISO tanks, Flexitanks etc), rather than in bottles or smaller packaging. Some organizations describe any wine that’s shipped in containers larger than two litres as bulk wine but, strictly speaking, bulk wine is wine that’s shipped in large containers and then repackaged at its destination.

Buyers can include wineries, importers, exporters or bottling facilities. Retail stores can also be significant bulk buyers, particularly if they’re selling ‘private label’ wines – the home brand wines created and sold by many liquor retail chains, supermarkets and grocery chain stores. The main advantage that private label wine offers retail chains is that it gives them control over the product, and eliminates the price competition from other retailers.

After all, if they’re the only ones selling that brand of wine, then they don’t face pressure to discount it. Bulk wine is typically traded in the US in one of three ways.

Tier One

The first and most important tier of the US bulk wine trade belongs to wine negociants or brokers. Turrentine Brokerage, Mancuso Wine Brokerage and The Ciatti Company, all based in California, are leading names in this space.

Such brokers offer services ranging from grape and bulk wine brokerage to global bulk wine trading, evaluations and strategic branding. It’s not surprising that San Francisco is the hub of the bulk wine business, both domestically and internationally, given that it’s both within reach of more than 4,000 Californian wineries, as well as being a significant entry point to the US.

Brokerage firms may also offer ‘services as contract manufacturers or private label makers, a part of the business known as ‘custom crush’. This involves a buyer stating the profile of the wine required, which is then made to order by a winery. The buyer usually provides cartons and labels and the winery produces the finished goods.

The brokerage firms offer a great starting point for international bulk producers seeking to enter the US market, given their experience, knowledge and connections.

Tier Two

Wine industry classifieds make up the second strata of the bulk wine business. These classifieds may appear in newspapers, industry publications or online, through websites like winebusiness.com and Wine Country Classifieds (also distributed in print).

The classifieds will list available bulk grapes, or the specifications of ready-made wines, and potential buyers then contact the supplier directly. Many wineries list bulk grapes and wines for sales on their regional association’s website. There are also web portals like VINEX and VinsenVRAC where buyers can negotiate on grape and bulk wine listings.

International producers may certainly list their products through these avenues, as long as they are able to take care of the legalities, logistics and price negotiations themselves.

Tier Three

The third section of the bulk wine trade market is known as the ‘whisper market’, where trade is conducted via personal relationships only. Products are not listed anywhere and nor is transactional data publicly available; nevertheless, this market accounts for a sizeable share of the bulk wine trade.

Insider information is circulated about how many gallons of wine are available for sale at which price, and buyers privy to this knowledge can arrange to taste the product and proceed with the purchase. Wineries can also let brokers know what wines they have for sale, and trust that the brokers will sell the product discreetly, without revealing where it came from.

Similarly, wineries or buyers looking to buy bulk wine can make their exact requirements known to a brokerage firm or negociant, who will then put the buyer in touch with a relevant winery.

This would be a trickier channel to explore for international bulk wine producers, at least until they have spent more time in the market and made deep connections within the network of bulk grape and wine buyers and sellers.

Why bulk wine?

Bulk wine is traded for many reasons, from the need to create a blend using a varietal that’s not available locally, to a need for more wine because of a poor vintage, all the way to private label. On the other side, producers sometimes have excess grapes or wine that they can’t use themselves, and the bulk wine market offers them a way to sell that excess. Wineries – unfortunately – also occasionally find themselves stuck with excess wine because a buyer has failed to make a payment or pick up the stock.

But although there are good reasons why the bulk market exists, there’s also a good reason why the whisper market exists. It’s commonly believed –wrongly – that excess wine is always poor quality. As a result, engaging openly in the bulk wine market has the potential to tarnish the reputation of a winery otherwise known for its award-winning wines.

This scenario presents an opportunity for buyers to procure bulk wines of excellent quality and use them judiciously to build new brands, or flesh out an existing wine portfolio – provided all players can navigate this complex market.

Bulk wine show

That’s why the International Bulk Wine and Spirits Show was created in the US – to put buyers and sellers together.

“The IBWSS gives an advantage to international bulk wine buyers and sellers: access to the key players in the bulk wine business for both long- and short-term opportunities with the bonus of educational and informational seminars on important issues and how to expand their business in the US in a single location,” says Tim Hanni MW.

“Attendees and exhibitors can save hundreds of hours and thousands of dollars by having everything, and everyone, in one convenient place.”

The US, whose consumption is estimated at 31m hL, has now broadly established itself as the largest domestic market in the world.

At present, it buys international bulk wines mainly from Argentina, Chile and Canada. But given the growing strength of the US dollar and the emergence of powerful US retailers looking to build private label brands, there is a great opportunity for other countries to make a splash in the market.

France, the largest bulk wine exporter in terms of value (29% of the world’s value) and Spain, the largest bulk wine exporter in terms of volume (23% of the world’s volume), are wine producing countries with a lot to offer this market, for example.

The International Bulk Wine and Spirits Show (IBWSS) is an annual trade show and conference which will give wineries, importers, supermarkets, retailers, restaurants, distilleries and other buyers a premiere international platform to source bulk wine and spirits and meet private label suppliers. Book now and save on exhibitor rates

Only 20 Spots are left to become an Exhibitor at the 2017 International Bulk Wine and Spirits Show. Register Now and Join the show as an Exhibitor.

ibwsshow offer January

Meet Ancient Lake Wine Company at IBWSS

Ancient Lake Wine CompanyAncient Lake Wine Company is a custom-designed facility built to preserve the quality of the grapes. The processing starts with a gentle belt driven receiving system feeding state of the art Bucher presses.

These presses, utilizing the “Organ” system, use fewer pressing cycles to extract optimum juice yields without excessive pressures that will release unwanted phenolic characteristics. From there, juice is sent to their stainless steel tanks, which are all individually insulated creating a micro-climate for each lot of wine produced, allowing them to apply specific techniques (native or non-native fermentations, variable fermentation temperature control, etc.) to each tank.

Additionally, optimum yields are desirable for most of their customers, so they installed a ceramic plated high solids cross-flow filter to capture close to 95% of the product, which protects any non-desirable characteristics that all Diatomaceous Earth filters introduce to the wine. Because of these systems, they are able to provide all customers uniquely sophisticated, vineyard specific, high quality, high yield wines that will be sure to meet and exceed all expectations.

List of services offered by Ancient Lake Wine company –

  • Bulk Wine
  • Custom Crushing
  • Press & Go/Pressing
  • Custom Winemaking
  • Wine Storage
  • Bottling

Ancient Lake Wine CompanyThey are taking  natural products in its prime, and helping it show its maximum potential through the art of winemaking to reach their clients’ goals.  They have a strong passion in allowing the grapes to speak for themselves through the wine, helping consumers identify the region they were grown and the different characteristics each site’s terroir promotes.

In their pursuit for excellence and their client’s success, they take many educated risks to help reach an optimum flavor profile for each block of grapes they process, narrowing down winemaking techniques that are uniquely desirable.  Hence, culminating a structurally balanced, terroir expressive wine which all wine enthusiasts are sure to never forget.

Meet and Explore Ancient Lake Wine Company’s services at IBWS Show. The International Bulk Wine and Spirits Show (IBWSS) is an annual trade show and conference which will give wineries, importers, supermarkets, retailers, restaurants, distilleries and other buyers a premiere international platform to source bulk wine and spirits and meet private label suppliers. Book now and save on exhibitor rates 

Only 20 Spots are left to become an Exhibitor at the 2017 International Bulk Wine and Spirits Show. Register Now and Join the show as an Exhibitor.

ibwsshow offer January

Meet Ultra Pure: Largest Selection of Bulk Alcohols in the World at IBWSS

Ultra PureUltra Pure is the #1 U.S. based bulk alcohol supplier. They source consistent, high quality bulk ethanol & high proof spirits for varying uses and industries. These products include Grain Neutral Spirits, Organic Alcohol, Aged Bourbon, Unaged Whiskey, Rum, non-GMO Sugar Cane Alcohol and all Specialty Denatured Alcohols.

Their alcohols and high-proof spirit bases are sourced globally and delivered from eight US distribution centers for a variety of services:

• Distilleries,Bottlers, and Blenders
• Spirit Brand Owners
• Foods & Flavors
• Botanical Extraction
• Hospitals, Labs, and Universities
• Industrial and personal care

With a corporate focus on streamlined distribution and excellent, personalized customer service, Ultra Pure has established itself as a highly competitive force within the Ethanol and Distilled Spirits markets as they work to reach the most beneficial and profitable solution for each company’s specific needs.

Ultra Pure

Ultra Pure is unlike other providers of high purity alcohols and spirit bases. Why? By maintaining the lowest operating cost in the industry, They guarantee best customer pricing, Every employee is fully engaged in sales, service or logistics, without wasteful management. Therefore, every employee has direct customer contact.

With over 600 customers, they offer the widest selection of alcohols with multiple shipping and packaging options all on a best cost basis.

Ultra Pure

A different kind of Alcohol company which is trusted everywhere. Meet and Explore Ultra Pure’s services at IBWS Show. The International Bulk Wine and Spirits Show (IBWSS) is an annual trade show and conference which will give wineries, importers, supermarkets, retailers, restaurants, distilleries and other buyers a premiere international platform to source bulk wine and spirits and meet private label suppliers. Book now and save on exhibitor rates 

Only 20 Spots are left to become an Exhibitor at the 2017 International Bulk Wine and Spirits Show. Register Now and Join the show as an Exhibitor.

ibwsshow offer January

Inception of the American Viticulture and the French Winemakers

While one cannot speak of sustained French immigration to the American colonies, some notable examples can be cited. The Labadists were mystics who lived communally on their 4,000 acre Maryland farm. There were the French settlers of Gallipolis in Ohio who, it appears, produced a wine so poor in quality it was named méchant Suresne after a wine known for its sourness produced near Paris.

The arrival of French Huguenots in South Carolina is of particular interest because, for the first time, a large group of settlers reached the New World with the primary aim of growing grapes. They had left France for England to escape religious persecution and in 1763 petitioned the British Government to provide them with land in South Carolina so that they could “apply themselves to the cultivation of vines and of silk.”

The request was approved. Setting sail a year latter, the Huguenots reached South Carolina founding the township of New Bordeaux in the southern part of the colony. They were joined four years later by another group of co-religionists lead by the forceful Louis de Mesville de Saint Pierre. But now came a setback. The colony’s governing body refused to provide the settlers with the funds needed to purchase vine cuttings. Saint Pierre thereupon decided to return to England and appeal for financial aide to Lord Hillsborough secretary for the American Colonies, but to no avail.

Rumors had it that Hillsborough had received a 250,000 British pounds bribe from French wine 2 merchants dismayed at the prospect of losing the lucrative American and British markets. Budgetary constraints are a more likely explanation. A costly war with France had just ended forcing the British Government to reduce expenditures. It was about that time that Parliament, seeking new sources of revenue, passed the Stamp Tax and Revenue Act which set the stage for the American Revolution. Samples of New Bordeaux wine were submitted to the Royal Society earning for Saint Pierre a gold metal but nothing more.

Other personal appeals proving to be equally fruitless–one was even addressed to King George III– Saint Pierre decided to take his message to the public publishing a tract bearing the lengthy title, The Great Utility in Establishing the Culture of Vines and the Absolute necessity of Supporting the Infant Colony of French Protestants Settled in New Bordeaux South Carolina, who have brought the Culture of Vine and the Art of Raising Silk to Perfection.

When nothing came of this, Saint Pierre had no recourse but to sail back to South Carolina stopping off in Madeira, however, to purchase vine cuttings. (Had financial support been provided by wealthy Huguenots?) A final setback awaited his return for the cuttings died soon after being planted, victims of the root-boring lice, phylloxera. The New Bordeaux community eventually scattered, Saint Pierre being its last resident.

He would die in the first year of the American Revolution, the victim of an Indian attack. Although Saint Pierre was unable to create a productive vineyard, his efforts were not lost on future winemakers, especially those from Bordeaux who knew of the fledgling community across the ocean that bore the crescent city’s name, and of the valiant grape grower who had ventured there.

Some followed his example and many more seriously 3 considered doing so, for after Saint Pierre, sailing to the New World to grow grapes had become a realistic prospect appealing to adventurous souls willing to brave the unknown.

Continue Reading here

Article Source –
French winemakers

American Association of Wine Economists, AAWE Working Paper, No. 207, History & Politics 

Author – Sal Westrich, Pratt Institute, New York

 

Learn from some of the most influential professional in the beverage industry at the IBWSS conference. These presentations from industry leaders on today’s principal ideas on marketing, sales and distribution will challenge and inspire you to grow your private label, bulk wine and bulk spirits business. Register now to get lowest pricing.

Only 20 Spots are left to become an Exhibitor at the 2017 International Bulk Wine and Spirits Show. Register Now and Join the show as an Exhibitor.

ibwsshow offer January

10 Factors to Consider when Selecting a Bulk Wine Supply Partner

BTN talks to Steve Dorfman, partner at the Ciatti Company about the 10 Factors That One Should Consider when Selecting a Bulk Wine Supply Partner.

Steve joined the Ciatti Company in 2007 after working with the Brown-Forman Corporation, Fetzer Vineyards, Sonoma-Cutrer Vineyards and Bolla Wine brands for 24 years. His primary responsibilities are wine and grape sales within California, and the supply demands of markets throughout Europe, Scandinavia and Australia.

Ciatti Company is one of the world’s largest broker of bulk wine, and their services include brokering grapes, evaluating prices from a lot of wine to entire wineries and sourcing both domestic and international concentrate, as well as alcoholic spirits.

With such extensive experience in this industry, we asked him for his insights for buyers looking to get into this business. He mentioned that the buyer should do extensive groundwork to figure out the type of wine they would like to create. With a clear requirement in mind, they will be able to approach bulk suppliers with greater ease.

BTN talks to Steve Dorfman, partner at the Ciatti Company about the 10 Factors That One Should Consider when Selecting a Bulk Wine Supply Partner.

1. Know your market: On-Premise or Off-Premise, branded, private label etc.
What is your customer profile? The wine you create will be based on this. Are you looking to create a premium pour? Or a value driver with low profit margins to supply in a national retail chain. An answer to this question will lead you to seek an appropriate supply partner.

2. Know your target customer: Wholesaler, retailer, consumer
These three tiers are all your customers ultimately. Therefore, you must understand the profile of the customer at each tier that you are trying to reach. Will you be placing your brand with a small to medium wholesaler or a large one? Will it be retail chain or a mom-and-pop shop or a supermarket that will house your brands? What is the profile of the end consumer that will be buying your wine? These factors will help you determine the type of wine you require, the margins you will need to keep and lead up to the supplier who can make it for you.

3. Know your plan to go to market: Do you have a brand? Do you have all of your appropriate licenses?
Often, these steps are overlooked and the time and effort underestimated when one sets out to create a brand. Ordering wine from a bulk supplier is only one step in the chain. You need to finalize your brand’s name, SKUs, label designs, carton design, decide whether you will use a cork or bottle cap, file for required licenses. Without these, you will not be ready to go to market.

Continue Reading : 10 Factors to Consider when Selecting a Bulk Wine Supply Partner

Bulk wine supply partner

Steve Dorfman, Partner and Broker, The Ciatti Company.
Steve joined the Ciatti Company in 2007 after working with the Brown-Forman Corporation, Fetzer Vineyards, Sonoma-Cutrer Vineyards and Bolla Wine brands for 24 years. His primary responsibilities are wine and grape sales within California, and the supply demands of markets throughout Europe, Scandinavia and Australia.

Learn from some of the most influential professional in the beverage industry at the IBWSS conference. These presentations from industry leaders on today’s principal ideas on marketing, sales and distribution will challenge and inspire you to grow your private label, bulk wine and bulk spirits business. Register now to get lowest pricing.

Only 20 Spots are left to become an Exhibitor at the 2017 International Bulk Wine and Spirits Show. Register Now and Join the show as an Exhibitor.

ibwsshow offer January

Meet JF Hillebrand: Global Beverage Logistics at IBWS Show

JF HillebrandWhen transporting beverages, companies around the world have come to rely on the logistics services of JF Hillebrand. Combining expert staff, specialist knowledge and market-leading technologies, we offer a complete logistics management solution to a range of customers across the globe.

100% Beverage, 100% JF Hillebrand
Since inception, JF Hillebrand has been solely dedicated to the business of beverage logistics. Over 170 years of experience has equipped them with specialist skills and dependable processes – shaped around the unique demands of the products we handle.

100% Global, 100% Local
You’ll find a JF Hillebrand office or representative in every major beverage market in the world. Their global network assures customers of a single set of world-class service standards, but also means they can act more efficiently at a local level, with expert local staff who understand the challenges faced by local customers.

100% Innovative, 100% In touch
They strive to be at the forefront of logistics and IT developments, developing innovative systems and solutions which add tangible value to the customers. Through investment in innovation, we create solutions that set the standard – from online management tools, to the very latest developments in transportation.

JF Hillebrand is the world’s leading specialist logistics provider to the wine and spirit trade, with a global network of offices in every major wine and spirit market.

Learn more: Global Beverage logistics 

Looking to develop a private label, source bulk wine or meet contract winemaking suppliers?

Get your visitor trade pass and join the industry at International Bulk Wine and Spirits Show in San Francisco. Meet more than 80 exhibitors from all over the world offering private label, bulk wine, bulk spirits and contract winemaking services. (Register online to save and avoid gate
ticketing fee)

Only 20 Spots are left to become an Exhibitor at the 2017 International Bulk Wine and Spirits Show. Register Now and Join the show as an Exhibitor.

ibwsshow offer January

From Plonk to Cult Wines by Tim Hanni MW

From Plonk to cult wines – exploring the myths and misconceptions about the bulk wine. The history of selling and buying wine in bulk is about as old as the history of wine itself. For centuries the role of the negociants in Europe was a transparent and highly regarded imperative for the purchasing, blending, aging and bottling of wines. This often including the greatest Grand Crus of Bordeaux and Burgundies well into the mid-20th century. With the advent of new wine sales channels and emerging global markets the bulk wine market is once again more visible and tangible to many people in, or interested in entering, the wine industry.

The most common misconception about the bulk wine business I find from students in my wine business classes is that that the products available are exclusively, or even primarily, large quantities of modest to marginal quality wine. In short, the term “bulk wine” is almost synonymous with “plonk.” In fact, the international bulk wine marketplace is rife with a diverse range of products from the ubiquitous, inexpensive products that are essential for developing and maintaining many international value brands to high-end micro quantities of world class products, and anywhere in between.

Why would any winery in their right mind sell off top quality product as bulk wine? Reasons include quickly turning excess inventory into working capital, production that exceeds sales forecasts, wines that may not meet the parameters of a high blend, and even wines produced by a smaller or medium sized winery that holds a production permit and can make, then profitably sell off, excess production on a regular basis and at very attractive prices. I have been a part of transactions for amazing barrel fermented Chardonnays and fantastic red wines form the highest quality appellations and AVAs. Recently I found a significant quantity of literally world-class product that was custom crushed for a client that reneged on the contract. The wine had been fully paid for and the wine I was able to pick it up for pennies on the dollar.

Of the most popular marketing options available, and made more viable with today’s online and wine club sales, is the concept of offering special lots of wine with short-term availability that are sold on a first-come-first-served basis to a loyal customer mailing list, or via a specialty wine club, retail store, restaurant or web site. Many independent and chain retailers also take advantage of these shorter-term opportunities by creating a private label and find it a very profitable addition to their product range.

There are many examples of well-known super- and ultra-premium brands that got their start leveraging opportunities in the bulk wine market. And creating a long-term brand with bulk wines comes with its own set of risks, primarily the task of sourcing the appropriate specifications and standards of the material to sustain a brand over time. These brands live and die according to the dynamics of supply and demand in the grape and retail wine market thus careful business planning and establishing deep sourcing options are essential to mitigate the risk and reap the potential rewards.

Succeeding in developing a product with bulk wine requires a great deal of skill and the patience to ferret through hundreds of samples and make careful selections. The bulk wine market offers an enticing, quick to market alternative to more vertically integrated and long term traditional wine production models. Taking advantage of the opportunities requires connections to the wines, many available only through the “whisper market” and the networking of buyers and sellers at bulk wine conferences and market fairs. It is a fascinating, dynamic and essential segment of the wine industry and anyone interested in starting a new brand, ideating a new product or learning more about the industry will find it a rich source for an amazing variety of wines and opportunities.

Tim HanniThis article is contributed by Tim Hinnai MW. Meet Tim Hinnai MW at IBWSS Conference to learn and explore on the myths and misconceptions of the Bulk wine industry. Tim will also lead the wine and spirits blending laboratory at the IBWSS show.

 

Get your visitor trade pass at super early bird pricing and join the industry at International Bulk Wine and Spirits Show in San Francisco. Meet more than 80 exhibitors from all over the world offering private label, bulk wine, bulk spirits and contract winemaking services. (Register online) to save and avoid gate ticketing fee)

Only 20 Spots are left to become an Exhibitor at the 2017 International Bulk Wine and Spirits Show. Register Now and Join the show as an Exhibitor.

ibwsshow offer January