The bulk and private label wine markets are constantly evolving, influenced by economic shifts, climate variability, and changing consumer trends. For retailers, distributors, and brand owners, securing quality wines at competitive prices requires not only strategic partnerships but also the ability to adapt to market fluctuations.
At NexTerra, we navigate this dynamic landscape daily, sourcing wines from California, Chile, France, Australia, and beyond to ensure our partners have access to the best possible options for their programs. In this conversation, Duncan Marks, Global Wine Sourcing Manager at NexTerra, sits down with Malvika Patel, Editor and VP, Beverage Trade Network, to discuss 2025’s key bulk wine trends, pricing shifts, and how strong supplier relationships drive long-term success.
Interview
From your perspective, what are the biggest shifts in bulk wine availability and pricing in 2025? Are we moving toward a buyer’s or seller’s market, and what factors are driving this change?
Lately, the global market has seen increased trading, which is a positive indicator of reaching a balanced supply. However, the value of transactions is at unsustainable prices. We are keeping a close eye on the markets at a regional level as v24 Northern Hemisphere bulk availability becomes clearer, in tandem with v25 Southern Hemisphere harvest. The amount of vineyard removals/unpicked crop in 2025 will be a primary indicator for understanding where the 5–10-year market is truly headed.
Regions like California, Chile, and Australia have been managing oversupply, while other areas are dealing with lower yields due to climate issues. How is NexTerra adjusting its sourcing strategy in response? Are you focusing on certain regions due to favorable pricing, or diversifying to mitigate risks?
Our Sourcing team travels globally to find the best opportunities for our customers, see moreabout our travels on our blog. NexTerra has been able to leverage the quality: price ratio of opportunistic regions in larger non-appellated blends. At the same time, we have been able to tell the story of several global regions to bring market awareness and support, encouraging curiosity by the end consumer to branch out of their habitual purchases.
With inflation, rising production costs, and slowing consumer demand in key markets, pricing dynamics are shifting. How do you see bulk wine prices evolving in 2025, and what strategies are essential for buyers to remain competitive?
We take a simple approach to our Sourcing Program: We work with great partners. By approaching our partnerships with a long-term mindset, we can be honest, transparent, and forthcoming with our needs. Our suppliers respond by providing us with quality, flexibility, and fair pricing to ensure both parties can plan and operate for the foreseeable future.
As climate change continues to impact wine production, sourcing strategies need to be more adaptable. How does NexTerra ensure stability in supply despite climate-driven disruptions? Are you seeing any unexpected regions emerge as key suppliers?
We have not seen a dramatic enough impact to materially change our approach based on climate. Certain regions struggle with rainfall, frost, and heat, but that's an inherent risk of agriculture. We are keeping an eye on the rising costs of sourcing from particular regions, such as the EU, where ocean freight carriers are having significant carbon tax surcharges applied. The current EU and IMO initiatives will affect global trade prices for all commodities in the decades to come.
Retailers, private labels, and large-scale buyers are looking for both value and consistency in bulk wine. How are buyer expectations evolving? Are retailers and private label programs becoming more strategic in their sourcing, or are they still primarily focused on cost?
Buyers have become fully accustomed to having access to high-quality bulk wines at lower prices. A non-academic way of analyzing the market is looking at a sample set of 15-20 bulk wine opportunities from a given region. 5-to 7 years ago, half would be so flawed sensorily that you would rule them out before tasting them, and you might find 2 to 3 workable options. Today, 80-90% of listings are B/B+ quality.
Consistency in quality and pricing are the key drivers for buyers looking to fulfill multi-year sourcing initiatives. Cost will always matter; there's always a fire sale somewhere, but being able to rely on vendor partners for stable quality, pricing, and flexibility is invaluable.
Consumer preferences are shifting toward lighter styles, low-alcohol options, and alternative formats like kegs and cans. How are these trends affecting bulk wine-buying decisions? Are there specific styles or formats that are seeing increased demand?
Put simply, we are seeing an increase in requests for a wider range of ALL options. While no/low is of significant interest, higher alcohol wines are too. In general, the consumer marketplace is asking the wine industry to provide a breadth of styles, price points, and packaging. We feel this is a positive push for the wine industry to respond to, staying relevant to all generations and consumer demographics.
Traditional wine consumption is declining in some markets while emerging markets like parts of Africa and Asia are seeing growth. How is NexTerra navigating these shifts? Are you seeing new bulk wine buyers emerging from non-traditional markets?
NexTerra continues to provide vertically integrated solutions for all of our customers regardless of origin or request. By leveraging capabilities as an importer, blender/bottler, and logistics partner, we are committed to executing efficiently for any clientele we serve.
As we look toward the next three to five years, bulk wine sourcing will likely face further disruptions and innovations. How do you see the market evolving, and how is NexTerra positioning itself to stay ahead of industry shifts?
NexTerra is continuing to work with production partners on achieving the best quality wines possible without the traditional high-cost inputs of boutique winemaking. Similarly, we are working with logistics partners on the optimization of shipments and global transportation. Our mentality is to use every day as a learning opportunity so that when challenges arise, we are prepared to respond quickly and thoughtfully.
Strategic Sourcing for Long-Term Success
As the wine industry continues to evolve, adaptability and strong partnerships remain the foundation of successful private label and control brand programs. While pricing and availability fluctuate, one thing remains constant—the demand for high-quality, custom wines that align with market trends.
We specialize in helping retailers, distributors, and brand owners craft custom private label wines that stand out in competitive markets. Through trusted global partnerships and strategic sourcing, we ensure quality, consistency, and tailored solutions that meet evolving consumer expectations.
Looking to strengthen your private label wine program? Let’s connect!