Price no longer only factor driving own-label wine purchases, as quality improves
Price is no longer the sole driver it once was behind consumers’ decision to choose private label wines over branded, as the quality of own-label brands increases, according to new research by Mintel.
There is now a far greater focus placed on value for money at the premium end, with factors such as provenance and premium ingredients giving retailers the opportunity to boost their margins.
“Consumers expect [private label] to be on a par with, or even surpassing the quality of national brands,” said Katya Witham, a global food and drink analyst at Mintel. As a result, she said that retailers are having to improve their own-label ranges as consumers move from a purely low price approach to weighing up a product’s overall value proposition.
Europe accounted for more than half (57%) of all premium private wine label launches last year, far ahead of the US which contributed 22% and Asia Pacific with 16%.
Only 11% of all global private label food and drink launches carried a premium claim in 2017 said Mintel, underlining the importance of premium positioning in Europe compared to other parts of the world.
“Private label is one of the main areas where retailers can create a point of differentiation and stand out in an increasingly competitive retail market,” said Witham. “There are ample opportunities to capitalise on shoppers’ increasingly sophistiacted tastes and to redefine consumer retail brand expectations. With conscious consumption going mainstream, premium private labels with provenance, heritage ingredients and craft credentials can justify a higher price tag for many consumers.”