Currently, U.S. Private Brand market share in the $6 billion wine category is only about 1%, according to PLMA’s Private Label Yearbook. However, Lewis explains that store brands wine sales grew by almost 25% last year and was one of the top 10 private label volume gainers last year and the growth is only expected to continue.
While 15 states still prohibit supermarkets from selling wine, legislators in some states, including New York, Connecticut and Kentucky, have been trying to make changes in order to bring in the millions of dollars that come with licensing fees and taxes.
The potential of private label wine was highlighted in 2003 with Trader Joe’s introduction of its exclusive “Two-buck Chuck” wine. Other retailers with strong store brands wines include Walgreens, which introduced its Southern Point label in 2009 following a 10 year absence from the wine business. Costco’s Kirkland brand is featured at that retailer, and Target has introduced its own brand, Wine Cube. Kroger and Albertson are among supermarkets with well-known private label wine programs. And convenience retailer 7-Eleven has recently expanded their private label wine selection.
In Europe, the private label wine market has been thriving for years. Private label accounts for one-third of wine’s unit sales in France and 29% in Italy. In Britain, Tesco has been the leading brand of wine for years. This report can be accessed on www.plmalive.com.