Why Private Label Wine Business
The current estimates are that private label wines now account for about 5% of all wine sales in the U.S., and that percentage could go up. Some experts predict that by the year 2020, private label wines will account for as much as 20% of all wine sales. That would put the private label market on par with other private label markets such as personal label food products or diapers, which today constitute a considerable share of supermarket sales.
And in many countries around the world, including France and Italy, private label wine accounts for nearly one-third of all wine sales. Besides the economic appeal of selling personal label products, theres also the branding aspect that can help to differentiate companies from other retailers or restaurants.
A private label wine doesnt say private label on the bottle. It looks like any other wine a casual wine drinker would drink. Private label wines are not always the case in the restaurant and hotel business. Private label wines are becoming more popular as customers become more adventurous. They might not know the wine or the label, but they are tempted to try it. Having an eye-catching label is just as effective as having a first-class wine in attracting attention.
Can You Produce Your Own Wine
I get to make my own wine? Yes. The Wine Foundrys state of the art facility enables you to make your own wine by the barrel. We do all the hard work for you if you choose your level of involvement.
How much does it cost to get a bottle of wine from the wine foundry? The cost of your wine will depend on how much you want to drink and how long you plan on drinking it.
You will be able to choose from a wide range of wines from around the world, as well as a selection of our own wines.
Choose Your Sales Channels
In wine production there are four main types of sales channels:
Here you can be more in contact with your end customer.
- Tasting Room: The most common form of direct sales is through wineries.
- Online: this sales channel is relatively new, and consists of your customers buying your wine through a website. In this case, you should be in charge of shipping the product.
- HoReCa commonly referred to as on-premise and it denotes where the wines is consumed .
- Stores, like markets or liquorstores.
Domestic and International Distribution
In this case, we are talkingabout including an intermediary in the process, which for example can be a supermarket, a physical store or even a wine distributor .
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How To Start You Own Wine Brand
Have you ever been interested in having your own label of wine? Private labels have grown in popularity as more people discover you do not need to own your own winery. The key is partnering with an established vineyard and winery that offers a full array of custom wine-making services. I spoke with Akhil Reddy, Proprietor & CEO, and Eric Sigmund, Chief Operating Officer for Reddy Vineyards, to break down the steps of creating your own brand.
What is a Private Label Wine?
Private-label wines are traditionally brands created for a company, restaurant, or individual to sell exclusively under their own name. Many vineyards grow more grapes, or produce more wine, than they can sell on their own, so they work with outside parties to sell the excess. Owning a private-label wine allows for someone else to take care of the production process so you may focus on branding, marketing, and selling your new label.
Embarking on your journey to create your own label of wine is very exciting. A huge component is finding a quality producer. For 25 years, Reddy Vineyards has been a leading source of premium Texas grown wine grapes. With 400 acres and 38 different grape varieties, Reddy Vineyards offers a plethora of options to craft wines that reflect your brands unique style.
Once you have your producer, creating general guidelines and a plan for your label is key. You will want to know the style of wine and which grape varietals you would like to use.
Why Make Your Own Private Label Wine
Many people want to make wine today. But instead of commercializing wine, why not make your own wine for personal consumption? Some reasons you might want to make your own private label wine include:
In short: Better Wine, Less Money! You can be the pioneer among your friends.
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Private Label Wine Program Is The Alternative To Limited Choice
Wine retailers have many responsibilities, one of which is to source wines.
Due to industry consolidation, wine distribution is controlled by mega-companies. These companies sell large quantities of wine to thousands of accounts.
Their businesses are about volume, not about choice or working with accounts to help them source wines to fit their business goals and customer base.
Mega-wholesalers basically force retailers to sell their customers something they dont want. And consumers are tired of the boring wines these companies push.
Retailers need other options.
Creating a private label wine program is an option that works.
It allows a retailer to offer its customers a unique and higher-quality wine product at lower cost. An added benefit is that the retailer can promote their own brand, and potential make a higher margin.
How To Start A Wine Label
A s a custom crush winemaking facility, a common question we get asked is, how do I start a wine label? Because this is so common, we wanted to provide a brief overview of some of the factors involved in this process.
If youve ever considered starting your own wine label, its likely that you dont know where to begin. Many first-time business owners might assume that you have to own your own winery to start a wine company, but that is not the case for many new labels. There are many components to consider when thinking about making your own wine, and we are here to help. If you are thinking of potentially starting your own wine label without the burden or expense of owning your own winery, here are some pertinent details to keep in mind.
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Choose A Private Label Wine Supplier
A wine supplier is one of the most important aspects of starting a private label wine business that stands a chance at success. You can work with a custom-crush winery or facility that offers full-scale services from providing the wine to branding and bottling it.
Alternatively, you can identify a local or international private label wine supplier or use a trusted sourcing agent to connect and strike deals with trusted winemakers and suppliers.
Choose a supplier based on the kind of wine you want to sell , whether you want to private label wine from a specific, and whether a supplier offers all the services you need to run a successful private label wine business.
How To Design A Wine Label: The Ultimate Guide
Think about the last time you went shopping for a bottle of wine: maybe it was for a friend or to bring as gift to someone hosting a dinner party or get-together. What guided your eye through the expansive number of brands now readily available at any local grocery store? Like the other millions of people that have grown the wine industry to a $60 billion industry, you probably checked through some simple and quick mental decisions: red or white, domestically grown or imported and price point. Even after that, youre probably left holding three or four bottles. Its impossible to deny that there is a small thing that can make or break the purchase for many people: the label.
Especially when buying a bottle that will eventually be a gift, its undeniable that consumers shop with their eyes. Need proof? Last year, Wine.net surveyed 2,000 wine drinkers asking them to choose between three bottles of red wine and three bottles of white wine with only a picture of each bottle to guide them. 80% said their decision was based mostly on the label!
If youre an independent wine maker, you need to be sure your bottles stack up against the competition.
Read on to learn more about crafting a perfect wine label for your brand and how you can make sure your label leaves your consumers on cloud wine.
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How Can I Make My Own Brand Of Wine
One of the toughest parts of learning how to start your own wine brand is figuring out how youre going to make your own brand of wine. There are many different kinds of wine companies operating in different ways around the world.
One of the most traditional options is to open your own vineyard, which requires you to grow grapes, produce and bottle your own wine, and distribute your product using partners throughout your market area.
Having your own vineyard is an excellent way to give yourself more control over the wine making process. You can experiment with grapes, and tweak the production process however you like. Plus, youre guaranteed to produce something completely unique.
However, theres a lot of work involved in running a vineyard, and a significant amount of investment to think about.
One guide from Cornell University suggests it can take over 5 years of running a vineyard before you even begin to see a small profit. Though you might be able to charge higher prices for a unique wine eventually, youll struggle to get started without a lot of cash to push into your business.
Outside of building your own vineyard, you can also consider:
Buying a winery
This is one of the most expensive ways to create your own wine brand, but its also a lot faster and easier than owning a vineyard.
The work of creating a thriving company will already be done for you, so you really just need to run the company and focus on branding and marketing your business.
Icipate In The Ttbs Screening Process
After filing your application, your submission and supporting documentation are entered into the TTBs tracking system. A TTB Wine Applications Unit Specialist will review your application and will call you about your application and to obtain any further information needed to complete your application. Subsequently, the TTBs Trade Investigations Division may undertake an on-site inspection of your wine operations. If appropriate, the TTB will then approve your application to start your wine business. Due to the complexity of this process, you might want to initially work through an approved bonded winery or bonded wine cellar until you are ready to seek approval for your own wine-making business.
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Getting Started With Your Private Label Wine Business
Founding your own private label wine company is an exciting decision. Curating your own collection of premium wines can turn into a fulfilling and lucrative business opportunity.
From designing custom wine labels to marketing your wines to restaurants, hotels, and wholesale distributors, mastering the fundamentals of operating a private label wine brand is an important first step. We love working with small, private label wine companies. Thats why we have no minimum order quantity. We can help you select the perfect wine labels made from materials that bring your custom designed labels to life, all at a price that fits your budget. Not sure what material or laminate would work best, or have questions about custom wine bottle labels? Give us a call at 877-277-4682 were happy to help!
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Alternative Models To Start A Wine Business
If youre not keen on investing so much capital into a full-blown winery, you can still assume a hands-on role in the wine business. Just consider an alternative business model, instead.
One option is to become a virtual winemaker, like Cannonball Wine Company, which started in 2006 in Healdsburg, California. Rather than shelling out millions for a vineyard and processing facility, Cannonball co-founder Yoav Gilat decided to build a brand with much less.
For many years, Gilat worked in hospitality before joining the Israeli army. He then moved to the U.K. for law school, and eventually moved to the Bay Area with his wife to earn his MBA from Berkeley.
In California, he met his Cannonball co-founder, Dennis Hill, who has been in the winemaking business for 35 years and was a top winemaker at Blackstone Winery. His other co-founder, Greg Ahn, is also a veteran winemaker in Sonoma County. Their goal, according to Gilat, was to create a really great wine under $20, while having some fun in the process.
The three began Cannonball as a virtual company they dont own a winery, or a vineyard. They dont even have a tasting room . Rather, Cannonball has existing family growers harvest their grapes, and then Cannonballs winemakers make the wine in rented equipment.
Now, the company has four brands under its belt Cannonball, Angels and Cowboys, High Dive and Astrolabe and Cannonball alone is sold in 47 U.S. and 30 international markets.
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Labelled With Love: How To Start Your Own Wine Brand
Learning how to start your own wine brand could be the perfect way to transform your love of wine into a lucrative earning opportunity. Wine is one of the most popular drinks in the world, with endless varieties to choose from, and a fantastic global audience.
According to recent studies, the wine market was valued at around $417 billion in 2020, and is expect to grow to a value of $685.99 billion by 2028.
With your own wine brand, youll be able to appeal to a huge range of customers. Around 60% of Americans enjoy at least the occasional glass of wine. Plus, wine is particularly popular among younger generations, like millennials.
Learning how to create your own wine brand could be the start of an amazing business adventure. However, its worth remembering this endeavor will take significant planning and work.
Not only do you need to define a business structure and determine how youre going to sell your wine, but youll need to create a brand capable of separating your business from the competition.
Heres your guide to starting your own wine label
Know Yourself And Your Audience
A wine label has very little space so every element must be chosen for maximum impact. First things first: who are you and whats your story? A century-old vineyard in France might want to communicate to a potential customer that they are trusted, historic brand, making them a solid investment. While an upstart winemaker in Oregon might want to sell to younger, more adventurous buyer looking for something unique and new. Figure out how to tell that story in an engaging way in only a sentence or two, while also describing the particulars of that bottle.
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Plug Into Our Business Platform
When you join Wine Foundry Guild®, you access a comprehensive platform to launch and grow your wine brand. We provide a turnkey winemaking program to build your brand portfolio with custom ultra-premium wines. You develop and market your wine brand to consumers across the country. Our platform handles the licensing, sales processing, order fulfillment, shipping logistics, tax payments and compliance services you need to grow a successful brand. We make a complex process feel seamless.
How Much Does It Cost To Start A Wine Brand
The amount of money youll need to invest into a wine company will depend on a number of factors. The nature of your business entity, how youre going to create your wine, and even where you choose to sell will all contribute to the cost.
For instance, if youre building an international winery, you can usually expect to spend over $500,000.
If youre making your own vineyard, the costs can skyrocket all the way up to the millions, depending on how much wine youre going to grow and sell. In some cases, it is possible to start making your own batches of wine at home for a relatively low price .
However, you may struggle to scale your business in this way.
Whatever strategy you choose, remember that building a wine business is not an easy task. Youre going to need to invest some serious capital into your company, which could mean you need to access a number of business and personal loans.
Some of the costs you may need to consider include:
Overall, some estimates suggest the first five years of running a wine business can add up to capital of more than $1.5 million. However, you can reduce these costs by working with private label wine companies and similar distributors.
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Let Adobe Spark Be Your Wine Label Design Expert
Hone your creativity with the power of Adobe Spark Post. Explore professionally designed templates to get your wheels spinning or create your wine label from scratch. Establish a theme for your designs using photos, icons, logos, personalized fonts, and other customizable elements to make them feel entirely authentic. Duplicate designs and re-size them to create consistency across multiple types of assets. With Adobe Spark Post, its free and easy to make, save, and share your designs within minutes.
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