All posts filed under: Spirited

Incredible bulk: The changing nature of the international bulk wine market is creating opportunities

It’s estimated that roughly 25 percent of the world’s wine production is sold as bulk wine, a segment that’s described by one broker as the industry’s “soft underbelly” and exists for most consumers in the form of virtual brands. With the rise in popularity of bulk wine-derived, private label brands (brands developed for retailers, hotel chains, and restaurants, which sell them directly to consumers) and more producers entering the market in recent years, bulk wine has shed its low-rent image and become a hot commodity. With a healthy 6 percent annual growth rate for the last six years—and no signs of lagging—capitalizing on the continuing growth that’s predicted for the global bulk market depends largely on where you sit in the value chain. Identifying opportunities means navigating between the supply side of producers, brokers, and contract suppliers, and the demand side that includes retailers and on-premise operators. Short-term supply outlook Staying one step ahead of expansions and contractions of the bulk wine market is key for short- and long-term planning. Increasingly, brokers and contract suppliers …