Private-label wine is having a moment

Lots of folks, apparently, are raising a glass to private-label wine.

Sales of store brand chardonnay, merlot and more are up 9.1% to $52.2 million for the 52-week period ended June 18, according to Circana data released Friday by the Private Label Manufacturers Association (PLMA). And unit sales of private-label wines jumped 8% during the period.

Private-label spirit sales are also up, though not quite as much: Store brand spirit sales rose 3.2% to $5.2 million and unit sales increased 4.3% year over year.

Noticing consumer interest, retailers have expanded their private-label wine offerings.

Gelson’s Markets in Southern California added four bottles to its Napa Valley collection (2020 Napa Valley Cabernet Sauvignon; 2021 Reserve Chardonnay, Carneros; 2020 Reserve Merlot, Coombsville; and 2020 Epicure Cabernet Sauvignon, Yountville).

Late last year, Albertsons introduced its Vinafore private-label wine collection, billed as “distinctively classic wines, which capture the regions in which they are grown.” The assortment includes an Alexander Valley Cabernet Sauvignon, Sonoma Coast Pinot Noir, Sonoma County Sauvignon Blanc, Cotes du Rhone Villages, Napa Valley Chardonnay and Marlborough Sauvignon Blanc.

Perhaps most surprisingly, convenience-store chain Circle K debuted a line of private-label wines in 3,000 stores in May. The store brand wines are sold at multiple price points, from a value-focused offering that’s under $8 to a premium line priced between $10 and $25.

“Consumers appreciate the high quality and excellent value of private-label wine and spirits,” PLMA President Peggy Davies said in a statement. “Dollar and unit sales reflect this growing market.”

Private-label wine and spirits will be showcased at the upcoming Private Label Trade Show, to be held Nov. 12-14 at the Donald E. Stephens Convention Center near Chicago.

“The show will help buyers build their beverage alcohol assortment by showcasing domestic and international wines, including wine from South Africa and Western and Eastern Europe,” the PLMA said. “Plus, there will be sparkling wine, boxed wine, organic wine and Fair Trade wine.”

The growth of private-label wine and spirits follows the overall growth trajectory of store brands as retailers continue to invest heavily in the segment amid high shopper demand.

Dollar sales of all store brands increased 8.2% during the first half of 2023. They outpaced national brand sales gains of 5.1% year over year, according to Circana data released earlier this month. Compared to the first six months of 2021, private-label sales jumped 16%, or about $17 billion.

The beverage category saw the largest sales boost over the last year, up 19%.