From Plonk to Cult Wines, myths about the bulk wine industry cleared

One of the biggest misconceptions about bulk wines is that they are “cheap” wines for the most part. While it is true that millions of gallons of inexpensive wines are traded in the bulk wine market most people are surprised to learn how many high-quality wines are traded from very desirable regions, and even single vineyards, like Bordeaux, the Napa Valley and choice areas of Australia and South America to name just a few. This session will clear all your myths about bulk wine and how wineries can leverage in this space.

About Tim Hanni:

Tim Hanni, one of the first two Americans to earn the title of Master of Wine. A professionally trained chef, and international consultant to the wine industry, Hanni is the author of “Why You Like the Wines You Like; Changing the way the world thinks about wine.”

This paradigm-changing book focuses on expanding wine enjoyment by understanding the factors that influence personal wine preferences while eliminating counter-productive myths and misinformation. The Wine and Spirits Education Trust in London has recently adopted, and now teaches, his principles of Flavor Balancing and pairing wines to the diner, not the dinner. Hailed by the Wall Street Journal as “The Wine Anti-Snob,” Tim is an innovator, researcher, renegade and a relentless crusader against wine snobbery.

At the heart of this crusade is a quest to find the fundamental elements that shape our taste preferences, and to understand, embrace, and cultivate the interest of all wine consumers, not just a select few. Hanni continues to research on understanding the physiology and neuroscience that determine consumer beverage preferences and buying behavior, engineered in cooperation with noted Cornell University researcher Dr. Virginia Utermohlen, MD.

His mission is to eliminate wine myths and misunderstandings so all wine consumers have a stronger voice and easier means to enjoy the wines they love.

About IBWSS Conference:

At the IBWSS Conference, you can learn from some of the most influential professionals in the beverage industry. These presentations from industry leaders on today’s preeminent ideas on marketing, sales and distribution will challenge and inspire you to grow your bulk wine, bulk spirits, and private labeling business. The conference will have TED-Style talks where speakers will give you insights into the strategies and standards that the industry’s top thinkers are using to shape the marketplace around you.

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.

Event Producer: Beverage Trade Network

International Bulk Wine and Spirits Competition is brought to you by Beverage Trade Network, the leading online platform dedicated to connecting the global beverage industry. Beverage Trade Network (BTN) successfully connects wineries, breweries, distilleries and brand owners with international importers, distributors, brokers and beverage industry professionals on a daily basis. Strong partnerships with international and US organizations have helped BTN establish IBWSS as a premiere sales and marketing event committed to connecting the private label and bulk beverage industry.

Time & Venue :

San Francisco Conference Center, 255 S Airport Blvd, South San Francisco, California, on July 27, 2017, at 2:00 pm – 02:30 pm.

Grab your IBWSS Conference passes and learn more from Tim Hanni about from plonk to cult Wines, myths about the bulk wine industry cleared

Bulk Wine industry

Consumers love bulk wine. Emerging techniques for navigating fine wine obstructions in the distribution channel

About Damien Wilson:

Damien Wilson was appointed in August 2015 as the inaugural Hamel Family Chair of Wine Business Education with SSU’s Wine Business Institute. Dr. Wilson arrived in California, on the back of 20 years of professional experience in the production, distribution, promotion, sales and service fields of the wine sector. His commercial experience facilitated the achievement of the first-ever Honors Degree in Wine Business with the University of Adelaide; being the second of his four degrees in the discipline of Wine Business.

He joins the Wine Business Institute from Burgundy’s School of Wine and Spirits Business, having established an almost decade-long European professorial career, which originated in Australia with the University of South Australia in 1999. Dr. Wilson’s research background started with the prestigious Wine Marketing Group, where he worked on a series of projects investigating wine tourism, wine consumer adoption patterns, purchasing motivations, and retailing strategies. The Wine Marketing Group client list included global organizations such as Pernod-Ricard and the Fosters group, through to regional associations and boutique wineries. His professional and research interests have realized an extensive list of trade, consumer and academic publications on crowdfunding, wine consumer behavior, tourism, and e-business.

Dr Wilson’s most recent trade publication in Meininger’s Wine International was the culmination of a month-long discussion creating more than 100,000 on-line impressions in the month of December. This article followed his most recent textbook chapter on e-business in the wine sector from the 2014 book on Wine Business Management. He has just accepted an invitation to Emcee one of the leading events in the alcoholic beverage sector in 2017.

About IBWSS Conference:

At the IBWSS Conference, you can learn from some of the most influential professionals in the beverage industry. These presentations from industry leaders on today’s preeminent ideas on marketing, sales and distribution will challenge and inspire you to grow your bulk wine, bulk spirits, and private labeling business. The conference will have TED-Style talks where speakers will give you insights into the strategies and standards that the industry’s top thinkers are using to shape the marketplace around you.

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.

Event Producer: Beverage Trade Network

International Bulk Wine and Spirits Competition is brought to you by Beverage Trade Network, the leading online platform dedicated to connecting the global beverage industry. Beverage Trade Network (BTN) successfully connects wineries, breweries, distilleries and brand owners with international importers, distributors, brokers and beverage industry professionals on a daily basis. Strong partnerships with international and US organizations have helped BTN establish IBWSS as a premiere sales and marketing event committed to connecting the private label and bulk beverage industry.

Time & Venue :

San Francisco Conference Center, 255 S Airport Blvd, South San Francisco, California, on July 26, 2017, at 3:45 pm – 04:00 pm.

Grab your IBWSS Conference passes and learn more from Damien Wilson about Consumers love bulk wine. Emerging techniques for navigating fine wine obstructions in the distribution channel

Global Bulk Wine

How You Can Optimize Your Revenues By Selling Bulk and Private Label Spirits

If you thought that marketing a spirits brand is all that you can do, think again. Earl Hewlette from Terressentia Corporation will talk at the IBWSS Conference about how you can optimize your revenues by Selling Bulk and Private Label Spirits.

About Earl Hewlette:

Earl Hewlette is the CEO of N. Charleston, South Carolina-based Terressentia Corporation. Since joining Terressentia in 2007, Hewlette has overseen the dynamic growth of this company that is situated at the intersection of tradition and technology. Over the past 8 years, annual revenues for the distilled spirits company have grown from $7K to $20MM.

Earl is a South Carolina native. He earned a BA in English at USC and then served as an officer in Vietnam, where he was awarded, among other distinctions, a Bronze Star with Combat “V.” After completing his service, Mr. Hewlette returned to USC and earned his JD and MBA. He has since enjoyed a diverse career, working in law, real estate development, hospitality management—and now—distilling.

About IBWSS Conference:

At the IBWSS Conference, you can learn from some of the most influential professionals in the beverage industry. These presentations from industry leaders on today’s preeminent ideas on marketing, sales and distribution will challenge and inspire you to grow your bulk wine, bulk spirits, and private labeling business. The conference will have TED-Style talks where speakers will give you insights into the strategies and standards that the industry’s top thinkers are using to shape the marketplace around you.

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.

Event Producer: Beverage Trade Network

International Bulk Wine and Spirits Competition is brought to you by Beverage Trade Network, the leading online platform dedicated to connecting the global beverage industry. Beverage Trade Network (BTN) successfully connects wineries, breweries, distilleries and brand owners with international importers, distributors, brokers and beverage industry professionals on a daily basis. Strong partnerships with international and US organizations have helped BTN establish IBWSS as a premiere sales and marketing event committed to connecting the private label and bulk beverage industry.

Time & Venue :

San Francisco Conference Center, 255 S Airport Blvd, South San Francisco, California, on July 27, 2017, at 9:00 am – 09:30 am.

Grab your IBWSS Conference passes and learn more from Earl Hewlette about how you can optimize your revenues by selling bulk and private label spirits

Global Bulk Wine

How To Start a Brand Without a Distillery

No distillery? No problem. You can still start a spirits brand. Chris Mehringer from Park Street talks at the IBWSS Conference about how you can make this happen and what regulations and permits are needed.

About Chris Mehringer:

Chris Mehringer serves as President of Park Street, the leading provider of productivity-enhancing and cost-saving back-office solutions, advisory services, and working capital to alcoholic beverage brands.  At its core, Park Street serves as an importer and national distributor and provides access to the U.S. alcoholic beverage market for thousands of alcoholic beverage brands from the U.S. and around the world.  Park Street’s clients range from entrepreneurs to multi-brand global suppliers and include craft distillers, centuries-old family businesses, award-winning wineries, contract producers, innovation brands, and more.  Mr. Mehringer regularly advises clients on issues pertaining to route-to-market, growth acceleration, and conflict resolution.

Previously, Mr. Mehringer served as President of a national consumer products distribution company where he oversaw all aspects of operations and growth and developed and maintained strategic partnerships with Fortune 500 consumer products companies.  Mr. Mehringer is a founding board member of the Developing Minds Foundation, an advisor with the Harvard Innovation Lab, and a member of YPO.  He holds a Master of Public Policy from Harvard University and a Bachelor of Arts from Wesleyan University.

About IBWSS Conference:

At the IBWSS Conference, you can learn from some of the most influential professionals in the beverage industry. These presentations from industry leaders on today’s preeminent ideas on marketing, sales and distribution will challenge and inspire you to grow your bulk wine, bulk spirits, and private labeling business. The conference will have TED-Style talks where speakers will give you insights into the strategies and standards that the industry’s top thinkers are using to shape the marketplace around you.

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.

Event Producer: Beverage Trade Network

International Bulk Wine and Spirits Competition is brought to you by Beverage Trade Network, the leading online platform dedicated to connecting the global beverage industry. Beverage Trade Network (BTN) successfully connects wineries, breweries, distilleries and brand owners with international importers, distributors, brokers and beverage industry professionals on a daily basis. Strong partnerships with international and US organizations have helped BTN establish IBWSS as a premiere sales and marketing event committed to connecting the private label and bulk beverage industry.

Time & Venue :

San Francisco Conference Center, 255 S Airport Blvd, South San Francisco, California, on July 27, 2017, at 9:30 am – 10:00 am.

Grab your IBWSS Conference passes and learn more from Chris Mehringer about how retailers and restaurants can grow their private label brands

Global Bulk Wine

How Retailers and Restaurants Can Grow Their Private Label Brands

A retail store/restaurant can have a private label brand, but it can easily flounder. Bob Paulinsky MW tells you how to make it work. Hear him speak at the IBWSS Conference.

About Bob Paulinski:

Bob Paulinski, MW is one of the top industry experts in private label wine development. He has worked in a diverse range of wine retail leadership roles throughout the US, covering three decades.

In 1986, he started an owner-operated specialty wine retail business Traverse City, MI. The business flourished until it was sold in 2002, the same year that he became the ninetieth North American Master of Wine. In 2003, Bob accepted the Category Lead role for wine, spirits, and beer at Sam’s Club US in Bentonville, AR. In 2004, he introduced the first private label wines to Sam’s.

When he left the role four years later, the PL business had successfully grown to +$80M. In 2009, he took the Jacksonville, FL based Category Director role for 500+ Winn-Dixie grocery stores throughout the southeastern US. There, he was responsible for the development and management of over 300 PL wine skus ranging from opening price point to +$50 per bottle. The PL business grew by double digits over each year he was in the role. In 2013, Bob accepted the SVP of Wine position for the San Francisco, CA area based Bevmo stores. He had responsibility for PL development and implementation for more than 300 individual wine skus.

About IBWSS Conference:

At the IBWSS Conference, you can learn from some of the most influential professionals in the beverage industry. These presentations from industry leaders on today’s preeminent ideas on marketing, sales and distribution will challenge and inspire you to grow your bulk wine, bulk spirits, and private labeling business. The conference will have TED-Style talks where speakers will give you insights into the strategies and standards that the industry’s top thinkers are using to shape the marketplace around you.

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.

Event Producer: Beverage Trade Network

International Bulk Wine and Spirits Competition is brought to you by Beverage Trade Network, the leading online platform dedicated to connecting the global beverage industry. Beverage Trade Network (BTN) successfully connects wineries, breweries, distilleries and brand owners with international importers, distributors, brokers and beverage industry professionals on a daily basis. Strong partnerships with international and US organizations have helped BTN establish IBWSS as a premiere sales and marketing event committed to connecting the private label and bulk beverage industry.

Time & Venue :

San Francisco Conference Center, 255 S Airport Blvd, South San Francisco, California, on July 27, 2017, at 10:00 am – 10:30 am.

Grab your IBWSS Conference passes and learn more from Bob Paulinski about how retailers and restaurants can grow their private label brands

Global Bulk Wine

Roadmap For Connecting With Multicultural Consumers – Hispanic, African-America and Asian Households

Roadmap For Connecting With Multicultural Consumers – Hispanic, African-America and Asian Households: Panel Of Retailers Discuss Key Trend Driven By Each Group and How You Can Create Private Label Brands That Will Connect With Each Group.

About Steve Raye:

Steve has more than two decades of Drinks Industry experience, beginning with Diageo-predecessor Heublein where he managed Smirnoff and Finlandia vodkas and worked on the imported wine portfolio. As a Managing Partner of Brand Action Team for ten years, Steve honed his marketing skills providing PR and advertising services and was ahead of the curve developing cutting edge social media marketing in the U.S. wine and spirits business.

About IBWSS Conference:

At the IBWSS Conference, you can learn from some of the most influential professionals in the beverage industry. These presentations from industry leaders on today’s preeminent ideas on marketing, sales and distribution will challenge and inspire you to grow your bulk wine, bulk spirits, and private labeling business. The conference will have TED-Style talks where speakers will give you insights into the strategies and standards that the industry’s top thinkers are using to shape the marketplace around you.

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.

Event Producer: Beverage Trade Network

International Bulk Wine and Spirits Competition is brought to you by Beverage Trade Network, the leading online platform dedicated to connecting the global beverage industry. Beverage Trade Network (BTN) successfully connects wineries, breweries, distilleries and brand owners with international importers, distributors, brokers and beverage industry professionals on a daily basis. Strong partnerships with international and US organizations have helped BTN establish IBWSS as a premiere sales and marketing event committed to connecting the private label and bulk beverage industry.

Time & Venue :

San Francisco Conference Center, 255 S Airport Blvd, South San Francisco, California, on July 27, 2017, at 3:10 pm – 3:30 pm.

Grab your IBWSS Conference passes and learn more from Steve Raye about Roadmap For Connecting With Multicultural Consumers – Hispanic, African-America and Asian Households

Global Bulk Wine

Wineries and Distilleries Can Expand Distribution by Offering Private Label Option.


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.

Private label
Your last Chance To Become an Exhibitor (Only 5 Spots Left)
Become an Exhibitor By May 31 and Get Free 2 Day Conference Pass Included (Value $400).

Why the IBWSS Came To San Francisco

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.

Bulk wine

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.

Ultra Pure

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 info@beveragetradenetwork.com.

International Bulk Wine and Spirits Show (IBWSS) Visitor registrations are now open. Get Your Visitors Trade Pass Now. 

IBWSS

CBI Market channels and segments: Wine in the United Kingdom

Introduction

Wine trade in the United Kingdom (UK) is dominated by supermarkets, which increasingly sell private labels and import bulk wine from developing countries to save costs. Reaching this channel can best be done through an importer, mitigating your risks of dealing directly with supermarkets. At the same time, opportunities can increasingly be found for low-volume suppliers, at the emerging independent specialists.

Trade channels

The trade channels for wine in the UK are presented in Figure 1. A further explanation of the channels can be found under Annex 1.

Figure 1: Trade channels for wine in the UK

Buyer concentration makes long-term relationship important

The UK market has a small number of large wine buyers. The off-trade (around 10 supermarket chains and speciality shops) dominates wine sales. Supermarkets have become very competitive in the field of wine in order to attract more consumers. Some of them focus on the premium segment, such as Waitrose, while others focus on low-priced bulk wines. All of them run frequent promotions which bring down the prices of wines. The big players have also established their own private labels, which have grown in popularity and are regarded as labels of quality. This dominant position of supermarkets is expected to strengthen further in the coming years.

Tips:

– Be consistent and trustworthy in your supply quality and quantity. Make sure your wine is always available; once buyers need to go elsewhere they do not come back.

– Engage in a long-term partnership with a UK importer or bottler, where you develop a buyer’s own brand, in order to split risks and profit more equally.

Independents offer opportunities for small-volume suppliers

Independent wine merchants, as opposed to larger specialist retail chains, are emerging in the UK wine market. They can differentiate themselves more, thereby addressing the consumers’ growing interest in wine. They are finding new customer bases, are building a more attractive assortment compared to supermarkets and have an innovative marketing and client approach. For example, they organise in-store wine tastings and winemaker events. The number of independent retailers in the UK has increased by 50% since 2007 to approximately 750 stores, excluding large retail chains (Decanter 2014). Specialist retail chains, as opposed to independents, are actually losing market share. The near bankruptcy of retail chain Oddbins is illustrative of this development. Their shops decreased in number from 278 in the late 1980s to 37 in 2012.

Tips:

  • Develop a unique selling point, like unusual origins, varieties, production/region stories, sustainability/organic or Fair trade certification.
  • Branding is very important in the premium segment in the UK.
  • Independent wine merchants can best be reached through an importer specialized in the off-trade.

Economic recovery: switching back to on-trade consumption

The economic crisis led to a significant decline in wine consumption in the UK, and a switch to the off-trade segment. Consuming wine at home saves costs. As the economy and consumer purchasing power grows again, the on-trade sector is recovering. Sales in restaurants, hotels and bars will increase. Exporters in developing countries can respond to this trend by focusing their distribution strategy on importers specialized in supplying on-trade channels.

Tip:

In times of economic adversity, more opportunities can be found in the off-trade sector. In contrast, in times of economic prosperity, opportunities in the on-trade increase.

Online sales

Online sales in the off-trade account for 11% of the market in the UK, ahead of the average for European countries (The Drinks Business 2015). In general, retailers with physical stores lead the development of online sales. Consumers need to know the retailer before they will rely on the information provided in the webshop. Nonetheless, many small premium wine importers without physical stores offer their wines through a webshop too. Premium wines sell well online as consumers are willing to pay more for a less common wine which they cannot buy at the supermarket. Read more on online sales in the CBI Product Factsheet: Online sales of wine in Europe.

Tips:

  • If you supply small volumes of premium wine, find an importer with a webshop which offers wines from original locations.
  • Webshops are particularly interesting retail channels for premium wines from developing countries, as they offer space to provide product information, such as a story about the history of the winery.

Segmentation of wine

The segmentation of the UK wine market is presented in figure 2. A further explanation of the figure can be found under Annex 2.

Figure 2 Market segments for wine in the UK, including indication of share in sales per segment and average retail price per bottle

Growing imports of bulk wine offer opportunities for high-volume suppliers

The UK increasingly imports bulk wine. The benefits of importing in bulk are many, but require a producer to be able to export large volumes of wine because a wine flexi-tank holds the equivalent of 32,000 bottles. This method reduces transport costs, delays the start of a wine’s shelf-life, and reduces the risk of damage to the bottles. The increased sales of private-label wines also stimulates bulk wine imports. However, the threat of being substituted is significant. It is therefore recommended to have a diversified client portfolio.

When supplying bulk wine you can target a supermarket, which you can target directly or via an importer, although retailers often use an importer in this case. The retailer or importer then bottles the wine in the UK. Supplying bulk wine directly to supermarkets is difficult, making an importer a more suitable channel. Listing fees and necessary promotions are financially problematic, making it difficult for a developing country exporter to successfully target this channel. Working with supermarkets therefore requires good price calculations and involves high risks, as the sales quantities are not guaranteed.

Tips:

  • When supplying bulk wine, you can only target supermarkets. The latter require large volumes against a relatively low price.
  • Importers can play a role in protecting producers from the high risks involved when trading with one big buyer, by spreading sales and to help with their understanding of supermarket requirements.

Continuity in supply is of crucial importance to the bulk buyers.

Strong middle segment

In contrast to many other European markets, the middle segment in the UK is strong. In the past decade, especially in the period of affluence before the economic crisis, the average quality of wines on the UK market has improved considerably. Only consumers that are sensitive to price points still buy simple table wine. Many other consumers do not accept the quality of wines in this low-end segment anymore. Instead, they purchase wines in the medium to sub-premium segment. This segment, consisting primarily of branded wines, is actually growing.

Particularly empty nesters, whose children have grown up and left the house, and people who have retired are good target groups for (sub-) premium wine.

Tip:

  • If the quality of your wine is considered to be moderate, improve the quality before trying to enter the British market or focus on supplying bulk wine.

Read the CBI Product Factsheet: Premium wine in the United Kingdom for more information on the respective market segment.

Differentiation in private labels

Retailers increasingly carry different private labels. As the share of private labels in total wine sales increases, from 26% in 2010 to 33% in 2012 (Wine Business International, 2013), the need for such differentiation also increases. In 2013, private labels accounted for 35.5% of still wine sales and 45% of sparkling wine sales in the UK (Harpers 2014). Commonly, private labels refer to the name of the retailer, such as ‘Tesco South African White Wine’. Retailers mostly position these private label wines, which are often made of relatively cheap bulk wines, in the low-end market segment. In addition to these cheap private label wines, retailers are also developing premium private label wines, such as ‘Tesco finest’ and private labels which do not carry the name of the retailer on the front. In the latter case, retailers develop a brand which cannot be recognised by consumers as a brand (i.e. private label) of the retailer. Only the label on the back of the bottle includes a reference to the retailer, as the owner of the brand.

Retailers will increasingly take control of the branding of wines, as it offers them several advantages. First and foremost, it gives them greater control over their supply chains, because they can switch between suppliers if needed. As long as the flavour profile of the total wine blend remains similar, they can change individual wines in their blend. Secondly, retailers can add value by branding and have all the resources they need to build strong brands.

Tips:

  • Supplying wine for private labels is particularly interesting for exporters whose activities focus on viticulture and wine-making. The supply of wine for private labels offers an opportunity to direct all resources towards the improvement of production, whether in terms of quality or quantity.
  • Supplying wine for private labels is only interesting for relatively large exporters, as retailers with private labels require large volumes, especially in the low-end market segment.
  • Mix private label wine supplies with branded wine supplies to remain an interesting partner for retailers, while also adding value through your own brand.

Comparing segments of promising export markets

Match your wine with the most suitable export market. Table 1 provides some insight into which product options are appreciated in each of the selected promising export markets.

For more detailed information on specific segments, please read the CBI PFS for Organic Wine in Europe, CBI Product Factsheet: Bulk wine in Europe or CBI Product Factsheet: Online wine sales in Europe.

Table 1 Matching your product with a promising wine market in the EU/EFTA

Annex 1: Explanation of trade channels in Figure 1

Cash and carries are a type of wholesaler that supplies the on-trade sector. They sell wines from their warehouse where customers pay on the spot (i.e. cash) and carry the goods away themselves. Developing country exporters which produce (smaller volumes of) higher quality wine, or fairly unknown/speciality types of wine can target the on-trade sector and thereby choose for a cash & carry to reach this segment.

Agents are independent companies who negotiate on behalf of their clients and act as intermediaries between buyer and seller. Agents do not take ownership of the products, nor keep stock. The commission of a sales agent varies from 3-5% for large volume supplies to 10% for smaller quantities. Agents are still active in the UK market, but their role is diminishing.

The traditional role of agents to source the best quality wines, manage logistics and help with the management of the product itself has shifted over the years. Currently, only the agents who are worth their margin and can justify themselves to retailers, succeed. Agents are still necessary because large off-trade channels, such as supermarkets, do not always have enough staff for sourcing activities. The agent’s role is to connect the retailer to new producers. Agents in the UK usually make strategic alliances with selected producers, in order to form shorter value and supply chains. Agencies often opt to become brand owners or co-owners of vineyards; this simplifies the value chain, while making the product more credible.

Importers: Developing country exporters which produce smaller volumes of wine, higher quality wine, or fairly unknown types of wine are advised to use an importer/distributor to enter the UK wine market. Importers can advise exporters on many issues, including legal and quality requirements, market trends and packaging.

Importers buy goods, of which they then take ownership and distribute to retailers, the on-trade sector, or re-export them to other countries. Importers are either specialised in selling to the on-trade sector, or the off-trade sector. Retailers often use an importer for less known wines, since importers then take care of the quality control. Importers generally add a mark-up to cover commissions, credit risk, after-sales service and the cost of carrying a local inventory to meet small orders. Their margin ranges from 15-25% of the selling price.

Regional wholesaler: A regional wholesaler serves as an intermediary between an importer and the on-trade sector. Developing country exporters, therefore, do not get involved with this channel directly. Although regional wholesalers remain an important channel in the UK, their role is declining.

Supermarkets are the dominant sales channel for wine in the UK, and this dominance is expected to strengthen further in the coming years. Supermarkets are a suitable channel for high-volume exporters, either bottled or in bulk. They import per container, so you need to be able to fill at least an entire container. The focus of supermarkets differs considerably in the UK. Some focus on quality wines and a reputable assortment while other focus on low-priced bulk wines. Their margin on the selling price is about 30%.

High listing fees can be problematic, making it difficult for a developing country exporter to successfully target this channel. Working with supermarkets therefore requires good price calculations and involves high risks, as the sales quantities are not guaranteed.

Specialist retailers: Specialist shops are small, look for higher quality wines, and usually buy their wines from an importer, specialised in the off-trade. This channel, therefore, can only be reached indirectly by developing country exporters. Their margin on the selling price is 30% or higher.

Different developments can be distinguished in the UK. The larger specialist chains are witnessing strong decline in their wine sales. Several chains have gone bankrupt, while others were forced to concentrate on the most profitable areas only (big cities, especially London). Independents, on the other hand, are an increasingly vibrant channel, and are expected to grow further in the coming years. There are approximately 750 independent specialised wine retailers in the UK.

On-trade: The on-trade sector consists of many small players, and therefore usually does not import directly. If you target the on-trade sector, you can supply an importer or wholesaler, which redirects your wine to the restaurants and other players in the UK market.

An importer with a high quality image can provide support in selling your wine to the on-trade, by making use of his image. Restaurants mostly look for wines with a reputable image and of a good quality. Sales by the on-trade sector are expected to remain stable in the coming years.

Online sales: Online sales are well developed in the UK, already accounting for 11% of total wine sales in the country, and they are expected to increase further in the coming years. In addition to the leading supermarkets and specialist shops,which often sell wine online, there are a number of online-only wine stores and wine clubs which are growing in popularity. Some supply to restaurants and stores in addition to customers, while most are oriented towards delivering wine directly to the consumer.

Annex 2: Explanation of market segments in Figure 2

High-volume:

High-volume trade plays an important role in the UK. It usually concerns lower quality wines suitable for the low-end market addressed by supermarkets. Competition on price is very high in this segment. High-volume wines are imported per container.

Low-volume:

Low-volume trade concerns bottled wine only, and usually involves speciality wines, of a high quality or with another unique selling point. Targeting the low-volume segment, therefore, requires at least some level of authenticity. Note that branding is important in the premium segment in the UK.

Bulk:

Bulk wine imports are increasing. You need to be able to export a large volume when supplying bulk wine; a thousand hectolitres is usually the minimum required quantity (20-25 thousand litres per shipment).

The private label market could be an opportunity for developing country producers, although it is also a risk, as buyers can more easily switch to other producers to make up their blends. As such, it is mostly interesting for developing country producers without a brand.

Bottled:

Exporting bottled wine is most suitable for smaller exporters and for producers of branded wines. Transportation is more expensive in this case, but value addition for developing countries is higher as well since bottling takes place in the producing country.

Supermarkets:

Supermarkets are the leading sales channel in the UK and a suitable channel for high-volume exporters. Supermarkets import per container and highly focus on price. However, listing fees are problematic, making it difficult for a developing country exporter to successfully target this channel.

Specialist retailers:

Specialist shops are small, look for higher quality wines, and usually buy their wines from an importer, specialised in the off-trade. This channel, therefore, can only be reached indirectly by developing country exporters.

On-trade:

The on-trade sector consists of many small players, and therefore usually does not import directly. If you target the ontrade sector, you can supply an importer or wholesaler, which redirects your wine to the restaurants and other players in the UK market. Restaurants mostly look for wines with a reputable image and of a good quality.

Online sales:

Compared to other Western wine markets, online sales play a large role in the UK. All sales channels engage in online selling as well as marketing. E-commerce is expected to become even more important in the future.

Source : CBI Market Intelligence

The Bulk Wine and Spirits Show Expands In London

International Bulk Wine and Spirits Show,London 2018.

Exhibitor Interest Form

Please fill out your contact information here and get a special launch code that will give you a flat 25% discount on the launch day (April 1, 2017) on London Exhibitor Registrations for the International Bulk Wine and Spirits Show. It will also give you complimentary session tickets to all sessions during the event. The fair is aimed to be your default Bulk Wine, Bulk Spirits and Private Label show for the European market with London as a hub city.

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.

IBWSS buyers are wineries and distilleries looking to meet their demand, importers, retailers and distributors looking for private label programs, and negociants who are looking to meet new growers and producers.

International Bulk Wine and Spirits Show (IBWSS) Visitor registrations are now open. Get Your Visitors Trade Pass Now. 

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How to Have Your Own Wine Label Without Having a Winery

On the surface, it almost sounds like an oxymoron – having your own wine label without having a winery. But private label wines are becoming an increasingly popular segment of the U.S. wine market, and for good reason: launching your own private label wine can boost revenue, increase profit margins, and help you create a unique brand identity that sets you apart from the competition.

Perhaps the best example of a private label wine business taking off is the Kirkland Signature line of wines at Costco, which is already the #1 wine retailer in the U.S. Through its exclusive partnerships with wineries in the United States, Costco is able to offer unique, premium wines at half the cost anywhere else. Similarly, Trader Joe’s has sold over 50 million cases of its private label wine since 2002.

And a growing number of retailers – including some national wine and liquor chains and supermarkets – are following suit, viewing the private label wine business as a way to boost revenue and grow margins. According to some estimates, the margins on private label wine bottles are 10-15 percent higher than on bottles from national brands like Kendall Jackson and Barefoot.

Plus, as wine experts point out, retailers are essentially shortening their supply chain by squeezing out some of the middleman who are making their mark-ups every time they sell a case of wine. You are getting your wine direct from the winery, after all.

As a result, it’s no longer out of the ordinary to see private label wines show up on the shelves of supermarkets. Even a few national wine and spirits stores, such as Total Wine, now offer private label wines. According to the current estimates, private label wines now account for approximately 5 percent of all wines sold in the United States, and that figure could be headed higher. Some projections call for private label wines to eventually account for 20 percent of the entire market.

That would make private label wines roughly the equivalent of other private label goods (i.e. private label pasta, private label canned goods) that supermarkets now sell. And in France and Italy, the private label wine market is even more popular, accounting for nearly one-third of all wines sold.

In addition to the economic appeal of these private label wines, there’s also the branding aspect that can help to differentiate companies from other restaurants or retailers. For example, the legendary Italian restaurant Carmine’s in New York City has used private label wines as part of its overall branding strategy. It has worked with wineries to create a range of different wines – Pinot Grigio, Chianti, Prosecco, Montepulciano and Trebbiano – that it can offer to customers as examples of small, family-made wines, which can be enjoyed as part of a family-style feast. For families and tourists on a budget, it’s a way to create a welcoming wine menu that is also true to the restaurant’s overall brand.

The important point to keep in mind is that a private label wine doesn’t say “private label” on the bottle. To the casual wine drinker, it looks just like any other wine they might drink. While Costco and Trader Joe’s customers may realize they are drinking private label wines, that’s not necessarily true in the restaurant and hospitality business.

In general, private label wines are starting to catch on as customers become more adventurous and daring in their choices. They may not recognize the wine or the label, but are tempted to try it and experiment. And, as we’ve seen already, having an eye-catching label is often just as effective as having a first-class wine in terms of attracting attention. The “snob appeal” of avoiding private label wines, if there ever was any, appears to be fading. After all, the bottle, the cork, and the label are no different. It’s just a matter of convincing a customer to try a $10-15 bottle of wine they may not recognize instead of a bottle of wine that’s 2-3 times more expensive.

If anything, the major trend is towards private, exclusive wines that are grown in limited quantities. So that’s how businesses can choose to position their private label wines. Instead of being used to attract cost-conscious customers, it’s a way to attract affluent, sophisticated customers. That may not be true for Costco, which is focused on selling huge quantities at low prices, but it certain works for the hospitality business, where there is a constant search to differentiate oneself from the competition. As a result, everyone from a national chain of steakhouses to a small boutique hotel chain might be interested in creating a private label wine.

Bottles of white wine in a bottling plant

Which leads to the obvious question: How do you get started if you want to own your own private label?

The first step, say industry insiders, is to figure out the types of wines that your customers enjoy drinking and what the average price of the bottles they are ordering is. From there, you need to make a few projections about the growth projections of your business. You don’t want to be ordering thousands of cases of wine, and then be stuck with dead inventory. Also, since every label must denote the place of origin of the wine, the wines you select should be a natural fit for the restaurant in terms of region and style of wine.

From there, it’s time to reach out to wineries that might potentially be interested in a deal. Some wineries are able to accommodate a wide range of order sizes – everything from 5 cases to 1000 cases – while other wineries prefer only to work on smaller or larger order sizes. Once you’ve narrowed down your choices, the vintner will work with you on every aspect of creating your own wine – down to the creation of the label and even the type of cork. There are also independent design companies specializing in designing wine labels, cases and other promotional material. They will design a label that meets the specifications of the country you want to sell in and the tier you want to sell the wine in.

From there, all you have to do is place the order and you’ll soon have your private wine label, all without the time and expense of actually operating your own winery.

International Bulk Wine and Spirits Show (IBWSS) Visitor registrations are now open. Get Your Visitors Trade Pass Now. 

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