Store Brand Cheers
Trader Joe-san's Sparkling Sake strives for cool with its blue label with an anime graphic.
Private label wines and spirits make it easy for penny-pinching consumers to still see their glasses as half full.
Many people joke that liquor stores are recession proof because when times get tough people still drink. Perhaps there’s some truth to that, since according to Nielsen data for the 52 weeks ending 9/19/09, the total table wine category is up 3.6%, while Chilean wine is up 10.7%, and spirits are up 1.4% with Irish whisky sales up 18.9%.
Even if alcohol sales aren’t dropping overall, shoppers are more likely now to look for quality at a better price, store brand or not. Private Label wines and sprits in some cases are exceptionally affordable and offer many varieties, but whether or not they are identified as store brands depends on where consumers are shopping.
Shocking Value
When shoppers purchase private label wine and liquor they have no reference point for price comparison, but these private label wines would be a steal next to any bottle on the shelf.
Tesco’s Fresh & Easy Neighborhood Market, El Segundo, CA, spotlights “Customer Favorites” on www.freshandeasy.com. It’s no big surprise their Big Kahuna Cabernet Shiraz is a customer favorite, since it’s just a $1.99 per bottle. A recent reviewer on their website said, “This wine is delish! I would never have guessed a bottle only cost $2!”
At Trader Joe’s, Monrovia, CA, Charles Shaw wine offers consumers an inexpensive option that doesn’t sacrifice quality. Occasionally referred to as “Two Buck Chuck,” these California wines are priced at just $1.99 to $3.49 per bottle, depending on the region. The selection of Charles Shaw varietals will vary depending on the season and the quality of wine available, but on a recent trip to a NJ area Trader Joe’s, Private Label found Shiraz, White Zinfandel, Merlot, Chardonnay, Cabernet Sauvignon and Sauvignon Blanc, all for $2.99 per bottle. Cases of Charles Shaw were displayed in front windows and a towering display of the wines in-store declared Charles Shaw “the #1 selling wines in the U.S.”
More From TJ’s
With such strong support from consumers for their Charles Shaw varietals it’s no wonder Trader Joe’s isn’t afraid to place its name right on the label of its other store brand wines and beer. Trader Joe’s also exclaims on the shelf tags of a plethora of wines, such as Black Mountain and Novella, that they are “exclusive at TJ’s.”
More of their private label lines include the Trader Joe’s Coastal line and the Trader Joe’s Vinas Chilenas line. An end-cap in the store displayed the Vinas Chilenas line with price tags ($3.99 per bottle) that also offered pairings in cute sayings such as, “enjoy with seafood or chicken, maybe even with your favorite Chillian,” for the Reserva Cabernet Sauvignon.
More and more organic wines are popping up in stores recently, but not always at the best prices. Trader Joe’s Grower’s Reserve wines are made with organically grown grapes and the bottle of Chardonnay we picked up was priced at just $5.99. Certified organic by California Certified Organic Farmers, the back label reads “We believe in working with nature to produce outstanding wines. ”
Another interesting private label option is the Trader Joe-san’s Sparkling Sake. It’s packaged in a bottle-sized label with cool anime against a blue speckled background and features a pop-top. The 330-ml bottles are produced and bottled by the Ume No Yado Brewery Co. in Nara, Japan and are priced at $5.99. On www.passionatefoodie.blogspot.com,a review said of the Sake, “it is full-bodied with strong rice flavors as well as some mild fruit.”
Behind the Label
Unlike Trader Joe’s, Kroger Co., Cincinnati, OH, sells wines like Parkers Estate and Hawkstone ($15 to $25 dollars a bottle) and Arrow Creek and Kalbarri (around $10 a bottle), but doesn’t identify them as store brands immediately on the label. Shoppers can identify them as such at www.kroger.com, where the company lists the varieties under “House Wines” and ask visitors to “read the tasting notes of our store brand wines.”
Harris Teeter Matthews, NC, carries Oak Creek and Fish Eye wines, both made exclusively for them. Fish Eye Wines is an upscale brand vinted and bottled by Fish Eye Winery in Napa County. Bottles are priced at $7.99 and include a Fish Eye Pinot Grigio, Merlot, Cabernet Sauvignon and Chardonnay. According to their website, “Harris Teeter has been searching for the perfect wine at a reasonable price and we found it, hook, line and sinker.”
The Oak Creek varieties Harris Teeter offers include a Cabernet, Merlot and Chardonnay. Mark Rasmussen, who oversees all winemaking activities at Oak Creek, says on the website, “The winery uses a combination of traditional and modern techniques to retain freshness and enhance the bouquet and texture of the three varieties we offer.” Techniques include harvesting at night for better fruit expression and using techniques such as cold pre-soaks and micro-oxygenation.
Hannaford Bros. of Delhaize Group U.S., Salisbury, NC, features the Black Elk line of wines from KDM Global Partners, LLC, a Philadelphia-based importer and producer of private label wine brands. Hannaford exclusively distributes a Black Elk Shiraz and Chardonnay from Argentina and a Pinot Grigio from Italy. According to their website, “These terrific wines with elegant aromas and well-balanced flavors come from two of the greatest wine regions of the world.” The bottles retail for $8.99 in MA, VT, and ME and for $9.99 in NH.
High Spirits
Winery Exchange, a developer of private label brands for retailers around the world, including Supervalu, Kroger Markets, Costco, Trader Joe’s, Delhaize Group and Tesco, have also developed a whole range of award-winning ultra-premium private label spirits. Shoppers can find its Origine spirits at stores such as Albertsons, Jewel-Osco, Lucky, Cub Foods, Farm Fresh and Shop ‘n Save, and its Veris Vodka at stores such as Dillons, Food4Less, Kroger, Ralphs, Smith’s, Fred Meyer, Fry’s, QFC and Scott’s.
According to www.wineryexchange.com, between 2005 and 2010 global spirits consumption is expected to rise over 6% and the overall U.S. spirits market is expected to reach almost 200 million 9-liter cases by 2011 (up from surpassed projected growth rates in 2006, which were over 176 million 9-liter cases and about $58 billion dollars in retail sales).
Sam’s Club, Bentonville, AR, offers high quality to its shoppers with a premium private label liquor option. Its GlenTaite 19 year old single malt Scotch whisky is distilled at the famed Macallen Distillery and aged exclusively in fine oak barrels for a minimum of 19 years. GlenTaite is made with high quality ingredients, exceptional distilling techniques and a dedication to upholding the Macallan Distillery name. The whisky is described on its website as dark in color with hints of honey, spice, clove and peat on the nose.
From wine to whisky to Sake, private label alcohol is evolving in packaging and offerings, but still often provides buyers with the best price. In order to compete with national brands stores will have to continue to grow their lines and update their presentation, while sourcing out the best quality product that still is unique and affordable to the consumer.
