Retailer-exclusive wine brands are massively outperforming their standard own-label rivals.
While volume sales of own-label wine have grown 4% over the past year, sales of Tesco’s Ogio brand have rocketed 57% by volume and 61% by value and its Dino brand has shot up 36% by volume and 41% by value [Nielsen 52w/e 3 September 2011].
Some of these sales hikes are off relatively low bases, but three of the top 25 wine brands are currently retailer exclusives, which often benefit from a high degree of promotional and pricing activity.
Sainsbury’s claimed strong sales of Mondelli, which launched in January, helped sales of Italian wines grow 24% in its stores over the past year, outperforming other multiples by seven percentage points. But this had not been at the expense of own-label wines, it claimed.
“Having ownership and control over Mondelli has enabled us to control quality more closely and buy competitively, giving us significant savings we can reinvest in pricing and promotions for customers,” said Sainsbury’s buyer David Peek.
Retailer-exclusive brands offered consumers a more socially acceptable alternative to own-label wine, which had also become more pricey in the past year, said Steve Barton, director of First Cape brand owner Brand Phoenix UK.
The average price per 75cl has increased from £3.97 to £4.25 [Nielsen].
Earlier this year, The Grocer reported that sales of supermarket exclusive-label Champagnes had helped pull the overall market out of a two-year slump.