Discover Unique Quality Wines from Boland Cellar at IBWSS 2017

Boland Cellar is a regional specialist with a long history of producing internationally-acclaimed wines.

From its humble origins, Boland has grown over 75 years to become an international producer of fine wine, competing on a global scale. Extensive prime vineyards across the Cape Coastal Region guarantee consistency in style and quality year after year, which, with collaboration, dedication and expertise, have led Boland Cellar to become one of South Africa’s top wine brands.

Boland Cellar

They are the most recent in our 40-year legacy of international wine awards and trophies here.

The captivating history of Boland Cellar in Paarl dates back to the late 1930s and the early 1940s.

In 1939 some 40 wine farmers of the Boland region came together to begin collectively were pressing their grapes. Soon their joint production was too large for the existing facilities to handle and the group broke up, at which point nine bold farmers from the Paarl area, determined to continue their collaboration, decided to head out on their own and took the courageous step of forming their own winery on 17 June, 1941. Today, that winery is known as Boland Cellar.

Their growing partners’ vineyards cover approximately 1,900 hectares (almost 4,700 acres) in area across the Cape Coastal Region – from Paarl and Malmesbury to Durbanville and the Berg River Valley. The variations in terroir and climate across these areas create regional expressions of each varietal, giving their dynamic and award-winning winemaking team the opportunity to create wines of both high quality and distinctive character.

The Cape Coastal Region is unique in its myriad of different terroir and climatic zones, producing some of the finest expressions of the varietals grown. Through collaboration with different growers across this region, Boland Cellar brings together grapes from a variety of different climatic zones, and blends them with their knowledge of the region and our wine-making expertise to create exceptional wine.

Boland Cellar

Among the climatic zones we draw on are the Paardeberg and its surrounds, well-known for producing exceptional Chenin Blanc, Sauvignon Blanc and Shiraz; the Drakenstein Mountain Slopes, which have lower yields, but very high quality grapes; the Swartland Border Area, which traditionally produces grain, but is now also renowned for its robust, full-bodied Pinotage and Shiraz; the coastal areas, ideal for Sauvignon Blanc, Merlot and Cabernet Sauvignon, and lastly the Berg River Valley, which favours white varietals, and consistently delivers a high quality harvest year after year.

Boland Cellar has been lauded as one of Paarl’s most progressive cellars, and we constantly strive to meet international accreditation standards.

Boland is IPW and HACCP accredited and has BRC accreditation through its bottling facilities. Boland Cellar is a shareholder in its bottling facility and is therefore able to ensure strict adherence to international quality assurance standards.

Boland Cellar also obtained full WIETA accreditation in 2016.

Wines Inspired by Nature

Great wine is not determined by a single element. It’s not just the terroir, with its soil and its rocks. It’s not just the summer sun, or winter’s chill. Each grape is the result of the collaboration between nature’s different elements – elements that shift and change and can prove fickle, but can also produce greatness. Like nature, Boland Cellar has chosen to work together with farmers and growers across a broad range of climates and terroir, taking the collaboration that was begun by each vine all the way to your glass.

Pioneers of Boland Cellar

The idea and spirit of collaboration has inspired Boland Cellar since its founding, and we are proud to have remained pioneers of collaboration in the South African wine industry for more than 75 years.

History is filled with great collaborations. They have changed the face of culture and technology, of music and art. Through it we are able to create something better, something that no individual could have created alone.

Since Boland Cellar’s formation in 1941, their ethos of collaboration has been at the heart of everything we do. The exceptional quality, style, consistency and service we offer is built on working together with growers, employees and suppliers, talented winemakers, and, of course, nature. Together, we are able to craft outstanding wine for our loyal customers.

Meet and Explore Boland Cellar 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.

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Private Label Wine Business in USA

The growing US private label market offers European producers a chance to sell wine in the biggest wine-consuming country in the world, not only reaching a new market but also possibly getting better margins. But, as with all things US wine-related, creating private labels means negotiating the three-tier system that regulates US wine distribution – each of the 50 states has its own laws, and there are sometimes even different laws within a state.

In addition, the private label system – that is, the creation of wines that are exclusive to one retailer or restaurant – can be almost as complicated as the three-tier system. Not only are there two major kinds of private label, there are also several legal and supply chain hurdles to overcome to do it successfully.

Still, say those who do private label, it can work and benefit producers. “You have to be willing to be flexible,” says Jean Hoefliger, a Swiss native who is the winemaker at California’s Alpha Omega, as well as a consultant who has worked with private label on both sides. “You have to be willing to understand how the US market is different, on how the system works, and what retailers are looking for.”

What is private label?

Private label wine, also called ‘store label’, is a brand that is created for, and sold exclusively by, one retailer and can’t be found anywhere else. It may carry the name of the retailer – which is common in Britain, but less so in the US – or a name devised for that retailer. The two best-known private labels in the US are Kirkland, which is sold only at the Costco warehouse chain, and Charles Shaw, the legendary ‘Two Buck Chuck’, available only at the Trader Joe’s specialty grocery chain.

Traditionally, private label was only for retailers, but the growth of large regional and national restaurant chains in the US has created a demand for private label on-premise as well.

The other thing to know? There are two kinds of private labels – control, or exclusive brands, and traditional private label brands. In the former, the producer owns the label, and can sell it to any retailer it wants. The Charles Shaw wines are control brands, since its producer, Bronco Wine Company, owns the label. Costco’s Kirkland is a traditional private label, where the retailer buys wine from a variety of producers and sells it under a name that it owns.

Each approach has its advantages. Owning the brand allows the producer to make the best deal it can, and to shop the label if it doesn’t like the current deal. But working on a private label with a big retailer offers stability and predictable sales. In this, says Gary Glass, president of the Parducci-owned Mendocino Wine Co in Ukiah, California, it’s not one size fits all. Each producer has to decide what works best for it; if it doesn’t want to worry about marketing, then traditional private label works better, for instance.

For some producers, it’s so worthwhile that they specialise exclusively in private label; they buy bulk wine or juice and then package it for the retailer, based on the retailer’s requirements. Or they put together a private label program and pitch it to a retailer or restaurant chain. The system also works the other way. Costco, for instance, contracts with producers to make wine for its Kirkland brand, and looks for specific varietals and regions of the world.

Even small wineries make private label. About 15% of the 5,000-case Brooklyn Oenology, a small New York City producer, goes to private label. Owner Alie Shaper says she works with local retailers and restaurants, who don’t need to buy enough wine to interest a bigger producer, but do want to do private label.

Growth of the market

The private label market is growing quickly, though it still isn’t as established as it is in Britain or used as often as it is in other US consumer categories. John Bratcher, a long-time retailer, wine broker, and winery sales executive in Austin, Texas, says: “It has picked up over the last 15 years, and really accelerated over the past five years.  The idea is that, with the expanding wine market in the US and more retailers, more retailers want to sell something that consumers can’t buy anywhere else.”

One difficulty with tracking private label in the US is that many retailers are reluctant to identify their wines as private label. Kroger, the $110bn grocery store chain, sells several private label wines under names such as Parkers Estate. This is such a common practice that Nielsen, which tracks grocery store wine sales, has a difficult time estimating the extent of private label sales in the US.

The Total Wine & More chain, with 135 stores in 18 states, and BevMo!, with 158 stores on the west coast, have a heavy focus on private label. After speaking with a number of private label producers, it appears that as much as 20% of the wine sold at the largest national supermarkets could be store brands; at some retailers, it may be as high as 40%.

The reason is not hard to find. The margins on private label wines are simply better – often double that of branded wines – and they also offer the retailer exclusive products. As important as margins are, that exclusivity matters, too. Retail competition in the US is more intense that it has ever been, as chains like Total Wine & More expand and supermarkets like Kroger boost their wine sections. This means that smaller retailers, in particular, are looking for something to sell that the bigger retailers don’t carry.

So what works in private label?

“Retailers always tell you that they want the best quality private label, but so many other things go into it,” says James Gunter, who owns Wines With Conviction, a wholesaler and distributor in Dallas who has worked with private label for years. “Where are they trying to slot the private label? What pricing do they want?”

Does the retailer want control or traditional private label? What grapes? Does it need a private label to compete with a national brand? To fill a certain space on the shelf, be it a category like red blends or a specific region? Does the retailer have a particular demographic in mind?

Retailers are more likely to use well-known international grapes for private label, rather than regions or more unusual grapes.  This doesn’t mean there isn’t a market for Rhone wines, or for French, Italian, and Spanish varietals, but that it’s often an uphill battle trying to make private label wines from them. Retailers are a little more open than used to be, says Gunter, but it still isn’t easy.

As to how to get into the market, while referrals happen, Glass of Mendocino Wine says cold-calling is vital. His company uses a pitch book with sample labels that include the name of the wine, the price point and the wine blend. This gives retailers “the look and feel” of what they might finally see on their shelf; a retailer who wants a $20.00 red blend or an $18.00 Chardonnay will be able to see a product mockup.

What the label looks like is crucial, says winemaker Hoefliger: “This is something that is difficult for Europeans to understand,” he says, adding that the wine is sometimes less important than the name and the label. “Don’t be surprised if you spend 70% of the cost of developing the private label on that part of it.”

That’s why Gunter says it’s important to find an importer with private label experience. The importer will better know which retailers are looking for a private label, what wine they’re looking for, and who makes the decisions. “I’ve wasted a lot of time with teams of salesmen over the years,” says Gunter, “but they weren’t anyone who could make a decision. Find the decision maker, and have a clean conversation.”

In three-tier, every wine sold to a retailer or restaurant must go through a distributor. This means that almost every private label wine, even if it’s 100% exclusive, still has to be distributed through a wholesaler to the retailer or restaurant. This isn’t as much of a problem when dealing with a big retailer, since the retailer’s wholesaler will probably be happy to take the wine to keep the retailer happy. But it can be problematic when selling to a smaller retailer and there isn’t enough volume to interest larger wholesalers.

Labels must also be approved by the US government, and some states require that wine goes through their own label approval process. In both cases, an experienced importer can help navigate the legal challenges.

Is it worth it?

Producer margins on private label wines can be much better than on branded wines – 50% to 55% compared to the more usual 30% to 35%, says Texas retailer Bratcher.

Here, as in so many other areas, says Glass, one size does not fit all.  Producers may have to sacrifice margin to get a retailer’s business, and larger retailers may offer lower margins in any case, because they do more volume or are using the private label to undercut a rival’s brand. Hence, producers need to be flexible and willing to work with the retailer on price and margin, particularly when it comes to their first contract. Once the first private label wines are on the shelves and selling, they will hopefully prove themselves and be a key to future business.

– Jeff Siegel

Source : Meininger’s Wine Business International.

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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.

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Key Retailers Like Marks & Spencer Drives Own Label Wine Growth

Mark & SpencerAndy 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.

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.

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