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| Path: Main Street : Resources & Library : Research Articles : Feature Article |
Private label wines a sophisticated way to raise fundsOctober 31, 1994; Canadian FundRaiser
More and more charities across the country are entering into joint ventures with local or regional wineries to develop their own private labels. Seizing this opportunity to generate much-needed income and enhance public awareness is a prestigious and sophisticated way to raise funds.
Private label programs fall into two categories: active or passive. The most common arrangement has the charity active in all phases --- from planning and product selection through to marketing and sales. The bulk of the responsibility is on the charity to encourage wine sales through campaigns focused on their membership, donors, corporate sponsors and those extended networks. The winery provides assistance by exposing the private labels in its own retail outlets and, where possible, acting on behalf of the charity to facilitate access to provincial liquor commission listings that further expand the market.
Having a membership 20,000 strong certainly helped "Zoo Wine", according to Lawrence Saunders. regional sales manager of Chateau ds Charmes. "Our joint venture with the Zoological Society of Metropolitan Toronto resulted in the sale of some 2,000 cases over the past 18 months. Obviously, the association has been worthwhile."
Other charities may opt for a more passive approach, as did Ducks Unlimited. Its program is a licensing arrangement. The winery is given the right to use the name of the charity in exchange for a portion of the resulting sales.
"We've received a significant sum as a result of our relationship with two wineries --- Pelee Island and Jost, said Steven Tonning, special projects manager at Ducks Unlimited. "We are very pleased with the results."
Success doesn't come easily
Both wineries produced a private label wine on behalf of Ducks Unlimited and listed them with the provincial liquor commissions in Nova Scotia, Ontario, Manitoba and Alberta --- effecting a broad distribution. With such licensing agreements, it's the responsibility of the winery to do all the marketing and sales.Private label fundraising can be profitable, but organizations contemplating such a move are well advised to consider the time, cost and effort involved. The development process alone is lengthy, taking up to six months on average. And getting a private label onto the liquor store shelf is an unusual and extremely difficult task.
"It's a great challenge, requiring a lot of legwork, and once it does happen --- if it happens --- charities must be prepared for the hard work involved to encourage individual liquor stores to stock a charitable label. It's not an easy thing to do," cautioned Saunders.
Projects must be of a large scale, high profile and ensure quality wine. Chardonnay, Pinot Noir and Pink Chablis selling in the $9-12 range seem most popular. "If you don't focus on quality, the customer won't come back, now matter how good the cause or catchy the label," said Saunders.
Profits from active programs are healthier than those from a licensing agreement. The Royal Ontario Museum, for example, receives about a dollar for each bottle it sells.
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