Here is a practical example: Conad brand includes 65 different labels, it doesn’t use the main Conad brand, but several other made-up labels. This turned out to be a successful strategy.
In Italy, private labels are quite new to the market, but it’s something that continues to grow. The 8,1% of wines sold in Italy are private label wines (22,6% in Europe). In other markets, for example Switzerland, United Kingdom, Germany and Spain the private label wines are the overall majority.
The private label wines started to spread in the middle of last century. In 1979 PLMA was born, (Private Label Manufacturers Association) which currently organizes two annual fairs, in Amsterdam and Chicago.
Generally, the consumers like to find the private label option on the market, they see it as an alternative to the conventional labels. At first, the term “private label” used to be associated with the sale of wines of poor-quality. Later, with the development of this option and its popularity, the stereotype was dispelled, and it’s easy to find high-quality and high-end wines. The growth was both quantitative and qualitative.
Also, we shouldn’t confuse high-quality and high-end products. A lot of prestigious wineries, such as some bordelaise chateaux, dedicate to private labels their low-end wines, which are also great quality products. The private label option is a great opportunity for the large producers to resolve their overfilled storage.
