Bulk wine glut in US gives private labels a boost

In the US, the private-label wine market is seeing a spike in growth, due to an abundance of high-quality bulk wine that is fuelling sales. Big retailers and supermarket brands are turning bottlings from top producers into accessible, value-packed options.

Supermarkets and chains like Total Wine, Costco, Kroger, and Gelson’s are leading the charge, offering wines from renowned producers at a fraction of the usual price. Gelson’s, for instance, sources bottles from Julien Fayard and Heidi Barrett, selling them around $50 instead of the usual $180. Industry experts see this as a smart way to attract new consumers while clearing oversupply.

While overall demand for wine is still soft, forecasts suggest a slight improvement through 2026, with growth expected to return by 2029.

Wineries taking an active, outward-focused approach - emphasising wine clubs, digital marketing, and customer retention - are seeing notable success. Streamlined SKUs, strong branding, and hospitality-driven experiences are also paying dividends.

Retail sales are inching upward, hinting at a slow clearing of wholesale backlogs. Yet, the under-$30 market remains fragmented, while everyday table wines under $12 are struggling. Even premium wines are seeing softer demand.

Despite these challenges, the rise of private-label wines demonstrates resilience and opportunity within the industry. Producers embracing strategic changes and innovative engagement are the ones thriving, signalling a shift from passive reliance on tasting rooms to a more dynamic, consumer-focused approach.