Q&A: Behind Albertsons Cos.' Private Label Wine Growth
Unlike most other retailers, Albertsons Cos. has made wine a key segment of its private label assortment.
With brands like Vinaforé, Signature Reserve, O Organics and Kaylana, shoppers can visit Albertsons Cos.’ banner locations in states that allow wine sales in grocery stores and find high-quality wine at a lower cost. Launched last November, Vinaforé was the most recent addition to the assortment, including five varieties priced between $14.99 and $21.99.
In late July, the grocer launched its Vine & Cellar wine delivery program in California, while adding new and exclusive wines to its portfolio of products. Shoppers 21-years-old and older in the Golden State can access Vine & Cellar through the Safeway, Albertsons, Vons and Pavilions websites, and have wine delivered within one to three business days.
Albertsons Cos.’ growing wine collection is curated by the retailer’s Group VP of Alcohol Curtis Mann, who is also one of 60 Masters of Wine in the United States. Store Brands recently spoke with Mann to discuss sourcing, how a strong private label assortment of wine sets the Albertsons Cos. apart, Vine & Cellar and more.
STORE BRANDS: When crafting Albertsons Cos. collection of wine, including private label and exclusive offerings, what do you look for as a Master of Wine?
CURTIS MANN: My training as a Master of Wine has led me to search for the best price to value offering from suppliers. We spend countless hours tasting wines to be sure we are offering customers the best wine for the price.
Additionally, we require our suppliers to give us third-party documentation for their wines, including technical statistics, so we can guarantee that those wines will taste just as good as the day they were bottled, long after they reach our shelves.
SB: In your opinion, what are some standouts from the Albertsons Cos. private label collection?
CM: The recent release of our acclaimed Vinaforé Collection has been a huge success. Wine Enthusiast recently announced that the Vinaforé Sonoma County Sauvignon Blanc received 93 points and the 2021 Vinaforé Napa Valley Chardonnay received 90 points. At $19.99 suggested retail, those are incredible wines for the price.
We also offer our customers a very impressive box wine with our Box Wise brand, which has been one of the most popular of any of the wines in our stores.
SB: How do these private label varieties help Albertsons Cos. stand out from other retailers who offer private label wine collections?
CM: We use private label and exclusive varietals to make a statement about our wine program and give customers the confidence that they can purchase and enjoy quality wines from us at a great value. We are very intentional when we select wines for our customers, and we work with many respected wineries around the world to craft our wines.
SB: What determines the pricing or tier of each bottle of wine, as they range in price?
CM: We evaluate each bottle of wine for appellation, style and volume to see where a wine will fit in our private label portfolio.
SB: What is Albertsons' marketing strategy for its private label wine, whether it be in-store promotions, digital messaging, etc.?
CM: Our marketing teams have been very creative with the marketing of our private label wines. In addition to classic in-store displays and advertising, we host wine samplings in our stores, virtual wine tastings and we teach customers how to pair the best foods with our wines. We have also been exploring online programs to complement our in-store programs.
SB: What spurred the launch for Vine & Cellar in California?
CM: We have seen the online sales growth of alcohol explode in California, and we were looking for a way to give the customer more flexibility in ordering wine. Vine & Cellar has also allowed us to significantly expand our selection of wines for our customers.
SB: With more states slowly allowing wine in grocery stores, how do you view future growth opportunities for this program?
CM: More competition in the alcohol space is actually good for business. As more states offer the sale of wines in grocery stores and liberalize shipping laws, this will give us an opportunity to offer a wider selection of wines to even more customers.