Social media network company twitter.com has announced it will make its own labels of wines to sell for charity benefit. Charity sales is a good idea but twitter does not have retail strength to position products. It is a good idea however, and reminds me of a practice that is still common, though not popular, with the retailers.
Most restaurants pour some varietals in quantity for by-glass sales as basic house wine: Chardonnay, Sauvignon Blanc, Cabernet Sauvignon, Pinot Blanc, Zinfandel and even sparkling. Basic wine-by-glass is similar to “well” category of booze. Well refers to bottles without strong labels. The booze is good and cheap because the establishment does not pay for the marketing cost of the label sticker and since the names are unknown, they are referred to as “well.” The entire country has been drinking no-name booze forever and no complaints yet. The well category pays most of the bills in a bar or restaurant. Wine-by-glass is the same. The basic wines sell a lot but are known as “glass of house wine” and so on. A house brand label sticker can help boost the sales of these wines. One can put their own name or company name on a bottle of wine produced by a vineyard and I am sure no charge for doing the custom stickers is the way to go.
In today’s economy, this may be a good practice to sell off excess basic wines to restaurants. Most large California vineyards have had excess since 2000. American wine companies that usually have some excess wine can offer to make labels with logos of local restaurants and sell large quantities of varietals for by-glass pour. That helps the restaurants market their names and sell good quality basic wines on a regular basis. The restaurants don’t have to give anything to charity because wine-by-glass is one of the only sources of income for most restaurants and bars. This way a portion of wines made by bottle each year is automatically pre-sold to the restaurants. The vineyard can take credit, on the back label, for their products integrity. The back label will add value to the product while the restaurant benefits by the marketing power of the front label. The practice should work great if the larger wine companies offer the custom labeling as an option for most of the local wines.
The folks behind social media site Twitter are expanding their empire to the wine business.
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