A white-labeled product is produced by one company for other companies to put their own brand on.
The goal is to make it look as if they (the final retailer) had made it themselves. It’s a common practice in the wine industry (among others) because it makes sense in many situations:
- There can be years between planting your own vineyard and harvesting enough fruit from it to make wine. Three years is not uncommon — and that’s a long time to go without revenue!
- Many wineries launch using other people’s grapes or juice to begin building a brand. They can bring in revenue while waiting for their own product to be ready. There’s nothing wrong with that. Rather than launch with less while in the learning curve, you can launch with excellent wine while mastering your technique.
- Sometimes it’s about filling gaps in your line-up of wines. You may have great reds, but customers are looking for a sweet white or a sparkling wine. It makes sense to white label someone else’s product under your brand until you can expand production.
- Sometimes demand is greater than supply. This is when you sold everything you created but can’t just shut your doors until the next vintage. This is a good problem – unless your production was limited by bad weather, wildfire smoke taint, insects or disease. Then it’s “survival while we regroup and find a way forward.”
- Sometimes there is an opportunity that you just can’t pass up. Lack of ready capital to expand production to take advantage of it may be a problem. For instance, if you were offered the opportunity to distribute before you can produce enough to cover the commitment.
- It could be that you’re hosting an event and want something unique for that. Buy white labeled shiners (bottled, not labeled) to custom label in honor of the event or cause.
- You may have the opportunity to sell in larger-than-usual lots for corporate gift giving. There are some cultures in which this is a REALLY big opportunity. Buy shiners from your favorite winery. Create a label that features your client’s brand. It makes a real impression!
If you’re looking to learn more about how to price or where to price bulk grapes or wine, or shiners look at https://www.winebusiness.com/classifieds/
If you need need a new label, a second label or a white label, we are happy to help! You can call (509) 545-4584 or find our contact form at https://saranelson.com.