Private labels in the wine industry are a huge—and growing—part of the wine industry. Related questions have been on the Paper 4 exam the past two years in a row, reflecting this trend.
Thanks so much for the insights everyone. I'm super interested in any offline facts if anyone wants to PM me. And Sabrina Lueck, I added some sources for you to reference in the original post. Since you offered a good start of an outline for the 2018 question, I'm going to dive into the 2019 question to wrap up this week's thread.
Sarah Bray said:2019: Why does a growing number of large retailers prefer to focus on own and exclusive labels over third-party brands? Is this good for the wine category?
It requires a two-part answer: an explanation, with statistics (although, as the examiners noted, only use hard numbers if you’re sure of them) and, less common for a P4 question than P5, a subjective opinion that must be well-argued and contain strong analysis. The latter half can be approached in many ways, whether looking at stops along the supply chain or as an overall SWOT (strength-weakness-opportunity-threat) analysis.
A growing number of retailers prefer to focus on own and exclusive labels, here defined both as wines that they may have sourced and created brands around them specifically for the retailer, and existing brands that they have exclusive rights to sell. This essay will explore the reasons for this rising trend, as well as the impact that it has on the broader wine category.
Part I – Why:
Part II – Opinion:
Interestingly, one thing that hasn't really been noted in this discussion is the rise of sommelier-branded wines, at least in the US.