Who is the real producer of the name-brand wine we buy in large-scale retail? The selection is in the hands of the retailer, who is placing increasing emphasis on private labels for customer loyalty. Focusing on value.
For years, the private label wine (MDD) has been perceived as a cheap alternative to better-known brands, a choice dictated more by price than quality. But something is changing. Today the private label are no longer just a low-cost option: they are redefining the rules of the market, pushing brands to build strong, recognizable identities for their wines.
Numbers that tell of a transformation
According to NielsenIQ, MDD wine sales in the Italian GDO reached 273.8 million in 2024, up 2.1 percent from the previous year. In terms of volume, this is 106.9 million liters out of a total of 628 million sold in the GDO, marking a 1.6 percent increase. The sign’s branded sparkling wines grew 4.4 percent in volume and 1.3 percent in value, driven mainly by Prosecco. The average price of MDD wines stands at 2.56 euros per liter, still lower than the 3.6 euros of corporate brands, but trending closer.
From private label to value brand
While until a few years ago MDD wines were often anonymous labels, today signs are increasingly investing in creating lines with a well-defined personality. This means:
- More rigorous selection of producers: distributors are choosing partner wineries more carefully, often emphasizing small local wineries to give the product a more authentic identity.
- Curated packaging and communication: MDD bottles are no longer “generic” products. Attractive designs, stylish labels, and more engaging storytelling are transforming consumer perceptions.
- Supply segmentation.: Today we find private labels for all price ranges, from everyday wines to premium products and special selections or collector wines sold in limited editions.
Why are private labels winning?
There are three main reasons why sign brand wine is gaining more and more ground:
- Total control of the supply chain – Brands can ensure quality consistency and offer a competitive product in terms of value for money. In addition, direct control over margins allows them to build more advantageous pricing strategies than independent brands.
- Customer loyalty – A consumer who becomes attached to a private label is unlikely to change brands. Chains know this and are investing in making MDD wine not just an option, but an assortment highlight.
- Competitive differentiation – In a market where many references overlap among different signs, having an exclusive and well-positioned wine assortment can be a strategic advantage.
Risks and challenges for the future
Despite its successes, the world of private label wine faces some crucial challenges:
- Credibility: incumbent brands have built a solid reputation over the years. To compete, brands must work on transparency and product storytelling, clearly communicating the provenance and value of their labels.
- Market saturation: With the increase in MDD offerings, the risk is to have an excess of references that confuse the consumer. Strategic selection is needed to avoid internal cannibalization between different lines.
- The balance between price and perceived value: If MDD wines go too high up the range, they risk losing their price-related competitive advantage. Signs need to find the sweet spot between affordability and quality.
Conclusion: are private labels the future?
Private label wine is no longer simply an economic alternative, but a strategic lever for retail store brands. The challenge now is to grow these labels without losing their identity and without falling into the temptation of a downward price war. Consumers are showing that they are ready to choose quality, even when the producer is not a well-known name. Will large-scale retailers be able to take this opportunity all the way?
