Pros and Cons of Private Label Wines

Private label wines are an effective way to enter the wine market when you’re not an expert in Winemaking practices and lack connections to source quality wines. In this article we discuss the Pros and Cons of choosing private label wines as a solution to beverage production.

Pros of private label wines:

Availability: Private label wine companies can hold a certain amount of product in tank for a private label brand which can be gradually drawn down from in line with seasonal demands. This means the private label wine product is always available and will only be packaged when demand requires.

Uniqueness: Some of the private label wines produced can be more unique than products that are currently on the market as private label wine companies can adjust recipes to meet certain demands. This differentiation can enable a private label product to stand out amongst the competition. It also enables the label and packaging design to be creative to further emphasise differentiation.

Focusing on strengths: Contracting out the production to an external company means you can focus on your own strengths of branding, marketing and coming up with new product development concepts. This leaves production, packaging and logistics to the experts and ensures it is done to the highest standard every time.

Minimising capital investment: Upfront investment is minimal as you’re not required to purchase equipment or machinery as the private label wine company will have these. It also means that you are able to absorb the benefit of price discounts on bottles or cans etc due to supplier relationships the private label wine company has established, which can lead to discounts on raw materials.

Cons of private label wines:

Similarity: Other products can taste exactly the same as the private label wine if they’re also using the same supplier. This is when branding and marketing play a pivotal role in distinguishing from the competition.

Organisation: Organising production volumes, quantities, formats and timeframes with an external company who plans weeks and months in advance requires the utmost organisation to ensure that when a company requires their private label wines to be packaged, the private label wine company has space within their packaging schedule to do so.

Weighing it up, working with a Private wine label manufacturer with industry expertise provides clear benefits. Idyll Wine Co offers private label manufacturing. Engaging a manufacturer like Idyll Wine Co, you are leaning into knowledge and experience that comes from years in the industry. By outsourcing to Private wine label manufacturing experts you can focus on branding and marketing of the chosen product, whilst leaving recipe development, product sourcing, packaging and logistics to the private label company.

Idyll Wine Co are experts in private label production for wine, cider and rtd products. We have capabilities to contract can, keg or bottle an array of beverage products. Contact us today to discuss the specifications of your product.