A white-labeled product is one that is produced by one company for other companies rebrand, to make it appear as if they (the final retailer) had made it themselves. It’s a fairly common practice in the wine industry because it makes sense in many situations:
Those years before your grapes yield enough fruit to make wine.
There is a period of time (often several years) between putting vines in the ground and producing wine at a commercial level. Most people don’t necessarily want to wait that long before having a product to sell. It’s not fun to swallow start-up plus three years of operating expenses and not have any revenue to help offset that.
Many launch their winery with other people’s grapes and/or juice to begin building a brand and bring in early revenue – and there’s nothing wrong with that. Rather than launch with something less while you’re in the learning curve, you can launch with excellent wine while mastering your technique.
Filling out a line-up of wines.
Maybe you have great reds to offer, but customers are asking for a white wine or a sparkling wine. Why not white label someone else’s product under your brand until you can expand production?
Demand is greater than supply.
This is when you sold everything you’ve created but can’t just shut your doors until the next vintage. This is what’s known as a “good problem.” Unless, that is, your production was limited by bad weather, lots of smoke, insects or disease… Then it’s something we call “survival till we can regroup.”
Lack of capital needed to expand production to meet demand enough product.
You are offered the opportunity to distribute, but your winery is not ready to produce enough wine…
You’re hosting an event.
Buy white labeled shiners (bottled, not labelled) to custom label in honoring (or at least acknowledgment) of your event or cause?
Corporate gift giving.
Maybe buy shiners from your favorite winery and create a label that features your brand instead of the winery brand?
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/.
And if you need a new brand or a new label, we’re here to help! (509) 545-4584 or email@example.com.