23/02/2023

Anthony is the Principle and Director of Bozzano & Company, a Central Coast-based wine business. They specialize in the sourcing of sales and bulk wine and wine grapes, as well as custom private-label product development for national and regional retailers. 

As per Anthony, there are 2 types of bulk wine sourcing - 

1)  Spot market 

2) Contracted bulk.

“When we’re working with contracted bulk, we are working with products that are going to be made in the future”

Just like there are two types of markets for bulk wine, there are also two types of sellers. There’s a lot of overlap, but they can be divided into Annual Bulk Wine Producers and Spot Marketing Suppliers. 

1) Annual bulk wine producers 

These are growers or processing facilities that actively produce bulk wine to target the bulk market. They offer consistency, scalable volumes, and strive to build long-term relationships and thus are not necessarily on the lookout to get the highest price every year. 

These are the majority sellers and they make bulk wine every year, and oftentimes the same style with the same varieties. They offer scalable volumes so everybody that is developing a new brand or has growth plans must work with annual bulk wine producers. 

2) Spot marketing suppliers  

Wineries that are rebalancing supply. Offer unique opportunities for prime and/or unique lots. When available, these wines are great for one-time opportunities, or for adding quality to a base blend. 

This is where estate wineries or more niche wineries step in. Maybe they have a few thousand gallons extra and they are making that wine available when they don’t have the bandwidth to sell it themselves. Thus they entrust it to the brokers. 

These are unique opportunities with really strong supply, and if you’re a negociant or looking for one-time buys. If you are an established brand and need a real quality kick, you can achieve it with spot marketing suppliers because oftentimes it has more oak or riper fruit flavours or higher alcohol that can elevate a sourced blend.

Full video - 2022 IBWSS Conference | Tips for Spot Market and Strategic Sourcing | Anthony Bozzano - YouTube

Tips for sourcing in an oversupplied market 

One of the dynamics of the oversupplied market that is advantageous to use for a buyer is that there is going to be a vast selection of wines to meet your needs, and the pricing is in your favour. 

a) Call your preferred supplier 

b) Pricing and selection can be advantageous to the buyer

c) Opportunity for long-term contracts: your preferred supplier will appreciate, having a multi-harvest home, and pricing will be advantageous 

“Being in an oversupplied market is really the easiest time for wineries to source bulk wine”

Why is an undersupplied market not preferred?

Wine is only leftover after all the bigger companies come and buy out whatever grapes they need. 

Tips 

a) Use existing relationships: Do you bottle at other wineries? Tell them what you’re looking for and maybe they can cut loose a special lot

b) Be ready to perform 

“You as a buyer need to be in your best shape. I mean, you need to be ready to perform. You need to be fluid with your cash flow, and just ready to buy wine.”

c) Be flexible: maybe you can blend in different vintages of AVA

“Sometimes, you’ve gotta create the wine you want, from the wine that is available”

Having the right winemaking team on your side is what's gonna make you take an average blend and make it something special. 

d) Be nimble: Bulk wine moves faster in an undersupplied market

If something happens, for example, someone gets a big restaurant placement, that category starts to disappear. Everybody wants samples. You need to move quickly, taste the samples and make a decision.

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General tips for any market condition

Be specific : 

Varietal, AVA, vintage, and price point is necessary, and style is a big help. 

We can take that information, sort through our inventory, dial in every detail and know exactly which bulk wine lots we’re going to send to that buyer immediately. 

This is what helps them be productive and helps wineries achieve their buying goals.

Be ready : 

Is your business licensed? Are you ready to taste and purchase?

Be responsive : 

As with  most things in business and life, communication is key

Be credible : 

Sellers usually give preference to buyers that they trust. Paying your bills on time is imperative to finding long-term success in the bulk wine market. 

Your credit is what is going to help you grow, and carry your momentum forward. 

The wine industry may seem big, but it's pretty small in the sense that when you spend enough time, especially on the supply side working with grapes and bulk wine, you feel like you know everybody. 

About IBWSS

The International Bulk Wine and Spirits Show is an annual trade show and conference, open to trade professionals only, which takes place in San Francisco, CA.

IBWSS visitors are buyers looking to meet up their demand for bulk wines, bulk spirits, private label programs, grape buying, or contract manufacturing.

IBWSS San Francisco will give supermarkets, retailers, restaurants, wineries, distilleries, and other buyers a premier international platform to source bulk wine and spirits and meet private label suppliers.

For More Information Visit https://ibwsshow.com

Written by Stuti Khetan, Beverage Trade Network