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“Dirty little secrets of the wine industry” by Florida Somm

The wine industry is often associated with luxury, exclusivity, and high prices. Consumers are willing to pay top dollar for premium wines that come from prestigious vineyards and wineries. However, there is a dirty little secret in the wine world that many consumers are not aware of: the sale of finished wine, grapes, and even bottled wine with a different label at 40-50% of the regular price, so the winery can maintain its luxury reputation and high prices for its brand.

As a sommelier based in Florida, I have seen firsthand how wineries use these tactics to protect their brand image and maintain their high prices. The practice is not well known but is a big part of big-name wine brands and it involves selling finished wine or grapes that are intended for a particular brand to another winery or distributor. It almost always includes an NDA (Non-disclosure agreement) so many consumers are not aware of this phenomenon.  The wine is then bottled and sold under a different label at a significantly lower price, often with no indication of its true origin other than the AVA. It makes me feel sorry for the clients who are purchasing the same wine under another brand, label, or even bottle and paying twice as much as me.  An astute buyer can take advantage of this arbitrage in the marketplace and offer some stunning value on their wine list.

The reason for this practice is simple: to maintain the high prices and prestige of the winery’s brand. By selling off excess grapes or finished wine under a different label, the winery can avoid flooding the market with their product, which would drive down prices and erode their brand’s image. This also allows them to maintain control over their supply chain and ensure that their premium wines are only sold at top prices.

This secret is making some of you jump for joy if you are connected to the right sources, while others groan that they have been paying double the price for the same wine.

In conclusion, the sale of finished wine, grapes, and even bottled wine with a different label at 40-50% of the regular price is a dirty little secret of the wine world. While it may allow wineries to maintain their luxury reputation and high prices for their brand, it is a disservice to consumers who are paying top dollar for wines that probably shouldn’t command that price. When your Somm recommends a superb wine that seems to be almost too good to be true it may be because of this situation.  Don’t be afraid to take their recommendation.