California Wine Glut Drives Premium Bottles to Discount Retailers
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
A wine glut is causing vintners in California, which produces about 80% of U.S. wine, to offload surplus premium bottles. Retailers including Costco, Kroger, and Grocery Outlet are purchasing this surplus. These wines, which are often high quality, are being sold at significantly reduced prices.
From latimes.com
Why it matters
The surplus allows premium wines, which might command high prices under a winemaker's name, to become affordable under private labels. For instance, a Napa Valley cabernet sauvignon that could fetch $45 to $85 might be priced as low as $9.99 at Grocery Outlet. Buyers at Kroger and Grocery Outlet have noted an exponential increase in the quality of available wines.
From latimes.com
Who's involved
- KrogerAmerican multinational retailing company purchasing surplus wine
- CostcoAmerican multinational chain of membership-only stores purchasing surplus wine
- Grocery OutletAmerican retail company purchasing surplus wine at bargain prices
- AldiGlobal discount supermarket chain benefiting from lower procurement costs
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- KrogerSpeculative
Might increase sales volume of private label wine due to the availability of high-quality surplus.
- Grocery OutletSpeculative
Could lower procurement costs for premium bottles by purchasing surplus wine at bargain prices.
- CostcoSpeculative
May increase consumer demand for high-quality, affordable wine options.
- AldiSpeculative
Could benefit from lower procurement costs for premium bottles due to the wine glut.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Wine glut drives down prices, pressuring Walmart's retail strategyCompetitor price drops may force Walmart to adjust its wine offerings.Possible
- Competitors' deep discounts on surplus wine may pressure TargetCompetitors' bargain wine purchases may increase pricing pressure on Target.Possible
- Wine glut may lower costs for discount retailers like AldiAldi may benefit from lower procurement costs for high-quality wine due to California's wine glutPossible
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The entities involved
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Kroger
American multinational retailing company
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Costco
American multinational chain of membership-only stores
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Grocery Outlet
American retail company