Hey ITB-
I’ve had a few requests from distributors about private label / custom label wines, and given the glut of fruit up here in OR and the soft market, it’s something I might say yes to. Does anyone have any experience with this? Would love to know any details/stories/advice. I make a few thousand cases, and have capacity for more. Interested in the financial side - I would have to have some payment up front, for sure. Does the buyer design and supply labels?
Any experience you all have would be helpful, even if it ends up being bad experiences that serve as a warning…
Thanks in advance. Cheers from Amity
I think you’ll find a broad set of examples and contracts for this type of work. Especially between volume sizes, expected resale vs private stock, and relationships you have with the buyers. This has been my experience. As I am not a compliance person, you should have all this reviewed by some who knows compliance and ideally contracts.
Dry goods can be discussed based on their preferences(or yours) in which case they’ll have to supply the dry goods. You’ll have to setup like a custom crush except you already have the fruit/wine(assuming you have your own winery or winery license). Write in the delivery dates required to meet bottling and removal from property within a specific timeline. Just like your own bottling make sure they procure some extra for test runs.
If you are sourcing it for them then make sure to price accordingly. Perhaps that could help your own pricing structure with vendors based on increased volumes. I would think this the best idea to simplify the supply chain. Ensure you work with your current verified and quality checked vendors. This has been my experience with the companies I’ve worked for to optimize supply chain.
Labels would ideally be made by them but you’d have to do the cola approval under your license(as I understand). Depending on the complexity, I’ve met one person who has done it for their clients but I understood them to be simple. If its a very design oriented label probably best for them to provide or work out details on the press check and acceptance of label. Or price accordingly to the work you have to do on the labels to make something fancy for them.
You can setup payment terms that work for you vs all on delivery/pickup. You’ll want to make sure this is all worked through with your client. Some issues you can run into are leftover labeled products that you may not have ability to sell(trademark, ownership, etc). You don’t want to waste time relabeling either. Full inclusive FOB pricing of from grape to bottle with estimates can establish fixed deposit dates to secure dry goods and materials with middle or final payment at delivery. Do expect margins to be thin though.
Hope that helps. I’m not an expert but I have worked private label/client wine sales.
Hi Jidhin-
thanks for those thoughts - and I also got your follow-up DM.
It is good to hear someone else say that labels are the responsibility of the client - that was one of my biggest questions, given that packaging is a lot more important, it seems, when it comes to private label wine…sometimes even more important that what is in the bottle.
I have my own winery license, and all vendors and fruit would be sources I already use for my own production, so there isnt much of a hurdle beyond packaging and writing a contract…definitely can’t make this wine and then sit on it in my own inventory.
Would love to hear any other thoughts or experiences that people have had in this space.
Thanks again Jidhin!