Have you ever wondered Who Makes My Wine?

Published: 07/01/2011

Over the Christmas break I had the time to catch up on several wine industry publications that had been gathering dust on my desk. Of interest was an article in Wine Business Monthly (November issue) by Nathan Gogoll, discussing how many ‘private labels’ and ‘supermarket labels’ existed. The number is so extensive that Sarah Collingwood has launched a website to address the issue.

It was with great interest that I not only read the article but visited the website.

The parallels between Sarah and myself are clear and it is not because we have the same name! Sarah Collingwood has a passion for small Australian producers and works for a small winery, Four Winds Vineyard in the Canberra District. She is keen to see that there remain viable business opportunities for winery owned and branded products. I have a similar passion for small producers too, although my interest does also include small producers from around the world. I don’t work for a small winery but I do represent a number of small wineries (from Australia and New Zealand) and they are all family owned. My family has a vineyard in Bendigo and although we do not make our own wine we are grape growers to one of the brands in my distribution portfolio.

I too worry about the market share for wine and the monopoly the ‘chains’ (Coles and Woolworths) have at present, which sits around 45% of the retail liquor market. Approximately 2000 outlets fall under the banners of Liquorland, Vintage Cellars, Theo's, 1st Choice, Dan Murphy's, BWS and Woolworths Liquor and within these outlets it is suggested that approximately 100 labels fall into the ‘private label’ or ‘buyers own brand’ category which is trade descriptors in the wine industry.

I am sure the figure is higher, but the point being made is that both Sarah and I have to compete against these labels along with all the genuine labels in what is a very challenging market. This makes for tough going especially when this type of wine can be made and sold cheaply, at prices that winery owned labels cannot compete.

I love the reference to ‘homebrand products’ and the fact that when we purchase a product in a supermarket we know what is ‘homebrand’ and what is not. This is not clear with wine. I am sure many consumers select a bottle of wine under the impression that it has come from a winery, is linked to a vineyard and people and has a story to be told. The reality is that many of these homebrand labels are simply wine by numbers, made to a price-point to meet a price category and generate a profit.

Romantic, no! Positive for the wine industry, no! Supportive to family owned wineries, no! Brand building, definitely not. Consumers can make a difference, and that includes me. By asking about the wine you are purchasing you can check whether the wine comes from a small producer, or even a large producer. By taking a few minutes to visit the website whomakesmywine.com.au you can check what many of the homebrand labels are and then make an informed choice as to whether you purchase them or not.

Just remember that every time you purchase a bottle of wine from a small producer you are doing you part in supporting their brand and giving the retailer or restaurant a reason to keep their product on the wine list!

Cheers Sarah