MDM Private Label Program

Private Label Program

Sales of private label wine brands are growing, and the category looks to be a significant portion of the market in the future. In the ACNielsen-tracked sales channel, private label brand sales have grown 30 percent in the 52 weeks ending September 23, 2006, on top of 18 percent growth over the same period in 2005.

Private label brands give the opportunity for a retailer and restaurateur to build trust and loyalty with a consumer.   The goal is to over-deliver quality for the price and build brand loyalty. 

According to the ACNielsen data, private label brands sell about 15% lower than the branded wine.   This shifts the margin advantage from the Distributor to the on/off premise business.  

Our private label program includes wines from the United States and around the world. 

Private label wines fall within four categories: house, merchant, control brands and Celebrity Brands. 

House brands are primarily on premise wines sold exclusively at a restaurant or restaurant chain. 

Merchant brands are created specifically for a retailer, however the branding and labeling does not display its status as a house brand. Examples of this strategy include Safeway's Diablo Creek and Whole Foods 360 Brands. 

Control Brands are sold exclusively through a specific retailer, but that retailer may not necessarily own that brand.  An example of this is the wildly popular Charles Shaw brand, which is sold exclusively at Trader Joe's but owned by the Bronco Wine Company.

Celebrity Brands are brands which focus on a celebrity and their identity.  Examples include Marilyn Monroe and the Rolling Stones.  These wines are marketed in the same manner as other commercial brands. MDM Launched a new division, Celeb-Brands.com, which is dedicated to celebrity brands the the marketing requirements.