When consumers hear the term private-label wines, they may envision Trader Joe’s Two-Buck Chuck or Costco’s Kirkland Signature brand, which includes Chiantis and Malbecs that retail for $6. But what they may not realize is that the private-label market has grown beyond the bottom shelf. Premium private-label wines are popping up at Costco and even Whole Foods for as much as $24.
Private-label wines—traditionally, brands created for a company (often a retailer or restaurant), which sell exclusively via one sales channel—are no longer, by definition, plonk. (Though plenty of volume-driven, inexpensive wine still exists.) These days, restaurants from Shake Shack to The French Laundry, as well as brands like Whole Foods and Grand Hyatt hotels, are getting into the private-label game, partnering with respected wineries like Frog’s Leap (in the case of Shake Shack) and Michael Mondavi’s Folio Fine Wine Partners (for Grand Hyatt’s Canvas line) to make wines that are exclusively available to their customers. Some of these wines are easily identifiable “linked” brands, such as Costco’s Kirkland, Sam’s Club’s Member’s Mark, and Trader Joe’s eponymous label. Others are less obviously aligned with their owners, including Whole Foods’ Wine Farmer or Kroger’s Acronym, which many consumers may not realize are private-label brands. What all private-label wines chiefly have in common is that the retailer, hotel chain, or restaurant often has a hand in forming the flavor profile and style of the wine and that the resulting wines are priced lower than similar wines from recognized wineries.
The profile of these wines has risen to such a degree that the Wall Street Journal’s wine columnist, Lettie Teague, recently devoted a column to the category. She singled out three Costco wines, including the 2015 Rutherford Napa Valley Meritage ($14), which she called a remarkable value. She also liked the 2016 Member’s Mark Mosel Riesling ($10.50) at Sam’s Club.
“Everybody has the same goal: to buy good wine for cheap,” says Andrew Cullen, founder of the CostcoWineBlog.com, which publishes independent reviews of the retailer’s private-label wines.
And every retailer has the same goal: to make more money.
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