Dive Brief:

• Regional grocer Giant Food has released a new line of private label wines called Artie, according to a company press release. The wines are now available at 57 Giant Food stores in Virginia.
• The lineup includes four varietals including a chardonnay from South Africa, a cabernet sauvignon from Australia, pinot grigio from Italy and a French sauvignon blanc.
• Each bottle is priced from $6.99 to $9.99 and features a unique, playful design associated with its country of origin. To celebrate the launch, Giant is giving customers 10% off their purchases of six or more bottles of any wine in the store.

Dive Insight:

One of the goals of Giant Food in launching a new wine label is to offer an affordable, approachable choice for shoppers who are new to wine or want to explore different varieties, the company said. 

Giant’s in-store wine buyer Jeffey Pygott has more than 30 years of experience in the industry and hand selects every wine that Giant stocks on its shelves, the company said. Pygott said the Artie brand is lighthearted, pairs well with food and is easy to drink. 

The grocer has another private label wine, Artisan Vintners Wine, which launched in 2018 and has won multiple awards. 

Private label wines have caught on in a big way in the last couple years. BJ’s released five private label wine selections under its Wellsley Farms store brand last March, while Walmart introduced its Winemakers Selection wine label in more than 1,000 stores in 2018. Target expanded its lineup of private label wines last year, and Costco has stocked its own wine under the Kirkland brand for several years. Aldi and Lidl are also well-known for their wallet-friendly, private label wine selections. 

The goal among retailers with private label wines is to entice customers with reasonable prices while boosting overall basket sizes. The investment is paying off, too, with the private label wine market more than doubling in the last decade and accounting for 17% of total wine sales at big retail chains, according to the Beverage Trade Network.

A new report from Rabobank found significant growth in online alcohol sales from grocery stores last year, with wine growing almost 100%. But that number could be even higher if grocers offered more selection and online and improved merchandising, the firm said. Meanwhile, another report shows wine consumption in the U.S. dropped last year for the first time since 1994, now representing 11% of the alcohol beverage market.