There are multiple segments within the wine industry, each having it own unique business characteristics. Large wineries have a tendency to actively create new brands and re-design in hopes of gaining market share. Small botique wineries will typically tend to have a label that is crafted to reflect the wine and the estate at which it is bottled.

With digital printing now main stream in the wine industry it is now much more cost effective for large wineries to introduce new brands into the distribution stream. At the same time small botique wineries can benefit from the same high resolution, foil and embossing, and sequential numbering that was once reserved for larger quantity labeling projects.

Is it necessary to change a label? The anwswer is as varied as the wine industry itself. One thing is for certain with advances in technology it is getting easier and less expensive.

Ultimately that’s why anyone would rebrand, and in the wine business it is getting so competitive that large wineries think a new label is going to increase sales. It’s a common mindset for many businesses. Not to mention there are a ton of design houses selling the idea of rebranding because they need the work.

Unfortunately, in the end the brand becomes watered down. It’s true with sports teams, it’s true with wineries and it’s true with many businesses. The more you change the image, the more you lose customers who recognize your brand. Customers have so many brands they see throughout any given day. They remember wine labels by sight, not by name.

The strongest brands on the planet are ones that don’t change. Coke, United, Pepsi, UPS, NIKE, Starbucks, etc… these brands are strong because they have consistent brand recognition. Jim’s comments above are right on the money. If a brand IS going to change, Gallo did the smart thing by gradually refining the look, and keeping customers who recognize their brand.

Your brand is one of the most valuable things you have. Managing it for long term growth takes finesse and careful orchestration.

Your point on Mr. Boston Brandy really hits home; opening the door for competitors to move in on your territory is the last thing you want to do; unfortunately, it can happen with a major label change. Thanks for sharing.

Pamela

The worst single brand label change was Mr. Boston Brandy. That brand had been built on a distinctive label that had not been changed for years and years. Then they haul out a new label without keeping any of the face of that well-known old label and then I saw as long time consumers of that brand would not buy the new package and those who did swore they changed the taste. Even bar owners where that brand was the number one call brand even questioned whether there was a taste change. That of course, opened the door for competitors who quickly moved into a market they had never been able to penetrate.

On the other hand, I watched Gallo change their generic wine to Livingston Cellars smoothly by making it a gradual change over a period of time. They maintained the basic struture of the label and by increasing the Livingston font and at the same time reducing the Gallo font until the Gallo name disappears off the label. They also used that formula with some of their other old line brands.

Every marketing genius should study that model as a way to accomplish the label change they are planning.

Regarding salient labels – on the opposing side, we have some wineries that have not changed their label in over 60+ years; take, for example Château Simone. I don’t particularly adore the label, but it’s recognizable and its position in the marketplace is stable and established, which is only achievable with years of consistency (e.g. a quality product and stable packaging).

The point I am trying to make is that wineries should focus more on creating a quality product and not worry so much about changing their label every other year. If sales are slipping, what is the root cause? Investigate and fix it; don’t always assume it’s a marketing/label issue.

BTW, Jonathan, since you’ve gone through the label changing process, do you have any advice you would be willing to share with others on how to make a successful transition?

I’d love to hear everyone’s label change success and failure stories, so if you have something to share, please respond!

Pamela