As retailers of all shapes and sizes rush to bring bulk wine-derived private label brands to market, their motivation is plain: Retailers typically make about 8 percent margin on national brands (due to competition), but a successful private label-brand can garner a double-digit margin of anywhere from 27 to 40 percent. By creating their own brands or partnering on exclusive brands, retailers improve their margins without having to confront the single largest barrier to success with private label alcohol: distribution. (See “.”) seeing a very healthy rate of growth—as much as 50 percent annually—for online wine marketers.” “We’re Cunningham, AWDirect Distribution trumps branding At Santa Rosa, Calif.-based , founder and VP/General Manager Bruce Cunningham produces custom label brands that rely largely on long-term vineyard contacts from growing regions around the world and along the west coast of North America. But he goes a step further by adding distribution to the mix. Through Wine Trees, a separate division of AWDirect, Cunningham imports and distributes a curated portfolio of boutique international brands from Italy, Portugal, Chile, Argentina, Australia, New Zealand, Germany, South Africa, and France; some of this product is imported as bulk and bottled by AWDirect in California. The company has also developed projects in Washington and Oregon, and has several California brands in its portfolio. Cunningham’s model is unique. He’s shifted away from non-vintage generic bulk wine to sourcing from smaller estate wineries that can convey a sense of place. He points to increasing demand from many online wine club marketing clients: source the wine and handle logistics for them,” he explains. seeing a “We “We’re very healthy rate of growth—as much as 50 percent annually—for online wine marketers.” AWDirect also uses online retailers and microsites to offer clients direct-to-consumer sales.
As retailers of all shapes and sizes rush to bring bulk wine-derived private label brands to market, their motivation is plain: Retailers typically make about 8 percent margin on national brands (due to competition), but a successful private label-brand can garner a double-digit margin of anywhere from 27 to 40 percent. By creating their own brands or partnering on exclusive brands, retailers improve their margins without having to confront the single largest barrier to success with private label alcohol: distribution. (See “.”) “We’re seeing a very healthy rate of growth—as much as 50 percent annually—for online wine marketers.” Cunningham, AWDirect Distribution trumps branding At Santa Rosa, Calif.-based , founder and VP/General Manager Bruce Cunningham produces custom label brands that rely largely on long-term vineyard contacts from growing regions around the world and along the west coast of North America. But he goes a step further by adding distribution to the mix. Through Wine Trees, a separate division of AWDirect, Cunningham imports and distributes a curated portfolio of boutique international brands from Italy, Portugal, Chile, Argentina, Australia, New Zealand, Germany, South Africa, and France; some of this product is imported as bulk and bottled by AWDirect in California. The company has also developed projects in Washington and Oregon, and has several California brands in its portfolio. Cunningham’s model is unique. He’s shifted away from non-vintage generic bulk wine to sourcing from smaller estate wineries that can convey a sense of place. He points to increasing demand from many online wine club marketing clients: “We source the wine and handle logistics for them,” he explains. “We’re seeing a very healthy rate of growth—as much as 50 percent annually—for online wine marketers.” AWDirect also uses online retailers and microsites to offer clients direct-to-consumer sales.
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