Latest news with #SecondCheapestWine
Miami Herald
29-05-2025
- Business
- Miami Herald
Forget tariffs, major grocery chain unveils its own cheap wine
The wine industry has faced the same decline in consumer demand that other alcoholic beverage industries have experienced in the last year. While the spirits industry has dealt with economic issues, with spirits supplier sales in the U.S. declining 1.1% in 2024 to $37.2 billion, the wine industry also struggled last year. Don't miss the move: SIGN UP for TheStreet's FREE Daily newsletter Wine industry metrics flattened out after three decades of sustained growth, mainly driven by Baby Boomer consumers, according to Silicon Valley Bank's State of the U.S. Wine Industry Report 2025. Related: Popular Trader Joe's wine brand has bad news, making harsh choice A reduction in wine consumption and a supply imbalance was influenced by a fundamental shift in consumer demographics, along with the resurgence of anti-alcohol campaigns, the report said. The reduction in demand was influenced by a decline in the "wine-friendly" Boomer population and a change in sentiment toward alcohol. The decrease in consumer sales led to bankruptcy filings from some significant wine companies, such as Vintage Wine Estates, which filed for bankruptcy in July 2024. The debtor, which once owned about 60 labels such as Girard Winery, B.R. Cohn, Kunde, Viansa Sonoma, and Windsor Vineyards, on July 24, 2024, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware listing $475 million in assets and $400 million in liabilities. The Santa Rosa, Calif.-based debtor won approval in September 2024 to sell off its wineries and brands to several buyers in a bankruptcy auction for over $140 million. Tariffs on imported and exported wines have not yet taken full effect, leaving the U.S. wine industry in limbo about what to expect in the months ahead. U.S tariffs on imported wine, which include 30% on South African wine, 20% on European Union wine, and 17% on Israeli wine, have been paused for 90 days. But wine is included in the U.S. 10% tariff on all imports. A combination of tariffs and rising prices driven by inflation is bound to increase the cost of wine. The easy answer for consumers is to seek out good-quality wines at reasonable prices. That answer might come from a couple of grocery chains that are in a battle to sell some of the lowest-priced wine on the market. Discount grocery store chain Grocery Outlet Bargain Market launched a challenge to Trader Joe's Charles Shaw line of wines, known as "Two Buck Chuck," as it introduced its private label Second Cheapest Wine. Related: Winemakers uncover a worrisome new problem Grocery Outlet in April rolled out five varieties of Second Cheapest Wine, including Sonoma Valley Chardonnay, Napa Valley Chardonnay, Willamette Valley Pinot Noir, Anderson Valley Cabernet Sauvignon, and Sonoma Sauvignon Blanc, each priced at $4.99 a bottle. The grocery chain's least expensive bottles of wine are usually as low as $3.99, but lower-priced bottles can sometimes be found at the stores. More retail: Popular retail chain to close unprofitable store locationsBankrupt retail chain unloads store leases, key assetPopular discount retailer files bankruptcy, closes all stores The Emeryville, Calif.-based grocery chain embraces the title of "Second Cheapest Wine," as Trader Joe's "Two Buck Chuck" currently sells for $3.49 a bottle, according to its website. Trader Joe's charged $1.99 a bottle when it launched Charles Shaw wines, or "Two Buck Chuck," in 2002, before it raised the price in 2013 to $2.49 a bottle. Charles Shaw wines include Pinot Grigio, White Zinfandel, Shiraz, Sauvignon Blanc, Red Blend, Cabernet Sauvignon, Merlot, and Chardonnay. Grocery Outlet's roots date back to 1946, when its founder, Jim Read, opened a military surplus store selling goods at discount prices. The business transitioned into a discount grocery chain with over 400 stores nationwide, according to its website. Related: Struggling wine and spirits company files Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
16-05-2025
- Business
- Miami Herald
The Friday Checkout: Kroger investigation is a reminder for grocers to button up their pricing
Consumer Reports, The Guardian and the Food & Environment Reporting Network released on Wednesday an investigation claiming Kroger has a "price tag problem" that leads to overcharging shoppers on sale items. "Kroger stores in multiple states, the investigation has revealed, show a pattern of overcharging customers by frequently listing expired sale prices on the shelves and then ringing up the regular prices at checkout," The Guardian story says. The investigation is based, in part, on the three news outlets tapping "secret shoppers" across more than a dozen states as well as union grocery workers in Colorado to document pricing discrepancies with purchases. Kroger told the news outlets that the price tag errors represented "a few dozen examples across several years out of billions of customer transactions annually." "While any error is unacceptable, the characterization of widespread pricing concerns is patently false," the grocer said in a statement, noting that it is "committed to affordable and accurate pricing" and conducts price checks regularly that review "millions of items weekly to ensure our shelf prices are accurate." The report adds to Kroger's chaos this year, from the sudden exit of top executive Rodney McMullen after an ethics investigation to the grocer's legal battles with Albertsons and C&S Wholesale Grocers over their failed merger attempt. The explosive report also comes at a time when grocers are facing ongoing scrutiny from government officials, watchdog groups and consumers (as well as Grocery Dive) over their pricing practices as shoppers continue to worry about how much they spend on groceries. A lawsuit filed earlier this year accuses Publix of overcharging shoppers for certain on-sale foods sold by weight, such as cheeses and deli items. The increased scrutiny on grocers' prices and sales serves as a reminder to supermarkets to button up their strategies and technologies so they avoid pricing errors. In case you missed it Wholesale clubs outpace Walmart in store visit growth Price-sensitive shoppers are buying in bulk these days. In the first quarter of this year, wholesale clubs outpaced superstore retailers in-store visit growth, according to Costco saw visits rise 6.1% during Q1, while BJ's Wholesale Club saw visits increase 4% and Sam's Club enjoyed a 2.7% bump in traffic. Visits to Walmart, meanwhile, declined 2.4% while store visits to Target declined 4.1%. Placer noted that year-over-year traffic growth at Walmart turned positive in April while Target's decline shrank to 3.3%, indicating consumers are stocking up ahead of expected impacts from tariffs. Grocery Outlet uncorks a $5 wine Eager to take on Trader Joe's famous Two Buck Chuck label, Grocery Outlet has come out with its own budget line of wine. According to SFGate, Grocery Outlet recently debuted Second Cheapest Wine, which includes pinot noir, cabernet sauvignon, sauvignon blanc and two types of chardonnay, for $4.99 per bottle. The wines are currently available at stores in five states - California, Oregon, Washington, Idaho and Nevada. SpartanNash is hot for brats Frankly speaking, there's no better time than now to fire up a grilling-themed display in grocery stores. SpartanNash has heeded the call, announcing this week that it's setting up a limited-time bratwurst-themed destination inside Family Fare, D&W Fresh Market and Martin's Super Market stores. The Brat Shop, which is open through Labor Day, offers an eye-catching selection of bratwurst, including pineapple teriyaki, smoky honey barbecue, zesty cheddar taco and a local delicacy known as the Michigander that has a cherry finish. Impulse find Aldi wants shoppers to light a "Burning Cash" candle Aldi is coming out with a new line of scented candles. But they're not the kind that you light to freshen up a room or unwind at the end of the day. The discounter's new must-have counter companions smell like burning cash. Sounds refreshing, no? Ever eager to let shoppers know it has really low prices, Aldi plans to make a limited batch of candles available to shoppers via a dedicated website starting May 21. Those lucky enough to score the home decor dream glow-up that Aldi generously claims carries "soft, smokey undertones" will get not one, but two Burning Cash candles. The second candle is ostensibly to give to a friend who needs to switch to Aldi, but they also make a great gift for your least favorite coworker or as a handy way to get rid of vermin in your attic. Copyright 2025 Industry Dive. All rights reserved.
San Francisco Chronicle
01-05-2025
- Business
- San Francisco Chronicle
Grocery Outlet wants to create the next Two Buck Chuck. Here's how it tastes
The prices are outrageous: $1.49 for laundry detergent; 99 cents for a box of Cheez-Its; $5.99 for a pound and a half of fish. They could only come from one Bay Area store. Grocery Outlet Bargain Market, headquartered in Emeryville, has always done brisk business with sub-$10 wine. But the chain never had a wine of its own until April, when it unveiled Second Cheapest Wine. The initial lineup consists of five bottles — a Sonoma Sauvignon Blanc, a Sonoma Chardonnay, a Napa Chardonnay, a Willamette Valley Pinot Noir and an Alexander Valley Cabernet Sauvignon — all $4.99. Before launching Second Cheapest Wine, Grocery Outlet was already in the midst of a private label tear, releasing proprietary versions of pasta sauce, bottled water and other products for the first time. Stephen Beckner, the import and private label wine buyer, knew that wine would be on the agenda eventually. 'The Second Cheapest concept fell into my lap serendipitously,' Beckner said. 'My wife and I were having a conversation one night and she said, 'Steve Beckner, you need to create the next Two Buck Chuck.'' He zeroed in on 'second cheapest wine' because the concept had been 'a viral trend for years,' Beckner said. 'You want to avoid looking cheap,' Beckner said, 'so you never want to buy the cheapest wine on a wine list or in a retail store.' Millennials of a certain age (me) may primarily associate the term with a brilliant 2012 College Humor video. ('Outside of the cheapest, it's the cheapest.') It's recently experienced something of a revival on TikTok. Clearly, the idea endures transgenerationally. The wine industry's current downturn has been a boon for Grocery Outlet, which works by buying excess product that suppliers are willing to part with at a steep discount. (By the way, it's always a good idea to double-check the expiration date of the store's dairy products.) 'The current climate right now is very advantageous for us,' said Beckner. 'There's an excess of wine in the marketplace.' Because so many wineries are desperate to move inventory, Grocery Outlet was able to snatch up relatively high-quality wine at a perilously low cost. Notably, these bottles don't merely carry the California label but come from prestigious appellations like Oregon's Willamette Valley and Sonoma County's Alexander Valley. A $5 California Chardonnay is one thing, but $5 Napa Valley Chardonnay is unheard of. What shocked me — and what really drives home the apparent panic in the marketplace — was how not bad the Second Cheapest Wines were. I was pleasantly surprised by the 2023 Sonoma Sauvignon Blanc, which was lemony and bright — if veering a touch toward the cat-pee end of the Sauv Blanc spectrum — and by the juicy, tropical Napa Chardonnay. It was remarkably lean for an inexpensive Chardonnay, which tends to get more buttery as it gets cheaper. That's not to say there were any 100-pointers. The 2023 Sonoma County Chardonnay was all oaky flavor; the 2023 Willamette Pinot had a cherry note that I could only describe as rubbery. The 2022 Alexander Valley Cabernet had an enjoyable potpourri-esque nose, but tasted chalky and crumbly on the palate. They are also, for the most part, literally the second cheapest wines at most Grocery Outlet locations, where the wine prices tend to bottom out at $3.99. Some stores also sell $2.99 bottles, which would make Second Cheapest Wine the third cheapest wine. However, 'we've been moving away from the $2.99 tier; $3.99 just seems to be a price category that we excel at,' Beckner said. 'Those wines just sell really well.' But $4.99 may be the new $3.99, because Second Cheapest Wine has been flying off the shelves. The label quickly became the company's bestseller when it was introduced in early April during Grocery Outlet's annual spring wine sale (when all bottles are an additional 20% off). The Cabernet is now the top-selling Cab across Grocery Outlet, Beckner said. Grocery Outlet may eventually create other private label wine brands, possibly even a 'premium' brand at $9.99. Beckner said that he's motivated by finding astonishing values. In a previous job, he sold Domaine de la Romanee-Conti, the world's most expensive wine. 'But the most fun I ever had was selling close-out lists — those wines that were $5, $6, $7 that just blew your mind with how good they were.' There are plans to release an additional seven wines under the Second Cheapest label. Beckner doesn't envision any difficulties finding more wine that meets their standards. More and more wineries keep reaching out to express interest in selling their leftovers to Second Cheapest Wine.
