A Romantic Ideal Must Tumble

I recently read an excellent article on “White Label wines” by Madeline Puckette and Co. over at Wine Folly. Except for one glaring bullet-point:

“Some wineries with tasting rooms will make a few own-vineyard wines, but will use bulk wine sources to make their cheaper, lower-end affordable bottlings. We’d ask what’s the point of selling something you pre-bought, rather than making at the winery? But it happens…”

It certainly does. Frequently. And understandably so.

First, what is bulk wine? Many established wineries at all quality-levels sell some of their finished wine on the bulk market. This is purchased by the gallon by other wineries or winemakers, typically at a fair tariff. Why would an established winery sell off the fruit (wine) of their hard-earned labor? Sometimes the wine is flawed. Other times it simply doesn’t make the cut for the premiere producer who grew the fruit and made the wine. One man’s trash is another’s treasure, though, and I have drunk many fine wines in the $12-$20 range that resulted from the latter. Finally, some producers sell finished, bulk wine to increase short-term cash flow. It turns out that bottling, labeling, marketing, selling, and then taking a hit in the three-tier system (producer, distributor, retailer) costs wineries a lot of money.

Punching down the cap of fermenting red wine.

Many wineries buy bulk juice, and for essential reasons. For instance, young wineries buy bulk to produce enough volume to create a viable business. Owning your own vineyards is an expensive proposition (understatement of the year at Wagon Wine), and buying fruit is also expensive as a result. Buying some bulk juice allows many new, small, and moderate-sized wineries to enter the market and sustain their business.

I certainly respect the notion that established wineries need not turn to the bulk market.

Thankfully, Madeline contradicts herself at the end by writing:

“We’ve pointed out several issues that white label wines can have, but we believe there’s a lot of potential with this segment of the market. The bulk wine market involves a lot of great wineries and great wines from special places all over the world. A lot of these producers are focused so much on making wine that they lack the resources to market it. Winemaking is very capital-intensive, and the winery may need to sell wines in bulk to raise cash faster than they can sell their own wines, even if the wine is perfectly good.”

Yep, and many young winemakers and wineries rightfully take advantage of this “perfectly good” juice to create their entry-tier wines. Perfectly understandable, and ultimately beneficial to us, the consumers.

So yes, Madeline, transparency matters. And not all bulk juice is equal. However, don’t take a sledgehammer to a nail. Bulk juice in entry-level bottles sustains many reputable, small to medium-sized family wineries.

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