What does “Winery Direct” Mean?

Reading the paper this morning, I came across an ad that I needed to comment on.  The ad was included in an advertisement for a large wine retail store, and it advertised “Winery Direct” as a sale.  What does this mean to you and me? Well, let me first explain wine distribution in the United States.

Predominately, wine goes through a three-tier system on its way to a retail outlet.  First, the winery ships to brokers or distributors, and then it moves to retail shelves.  As it should, each step in the process adds cost.  The broker needs to charge for storage and sales costs, and the retail outlet must do the same.  This process exists to allow for large-scale distribution of wines.  This is the avenue for many wines to make their way across the United States for all to enjoy – not just those who visit the area where the winery is located.

So, back to the question of Winery Direct.  With Winery Direct, the winery cuts out the “middleman” (the broker or distributor) and sends the wine directly to the retail outlet. This allows the wine to be sold at a lower cost and/or allows the retail outlet to make more of a profit.  One less stop for the wine means less cost of distribution, makes sense right?

If that’s the case, why don’t wineries make “winery direct” arrangements all the time?  The answer again is distribution.  Wine production numbers vary in size, as small as two barrels (which will turn into 40+ cases of wine) up to thousands of cases.  Distribution is the key, and a broker or distributor can help the winery get its wine into many locations. This is good for consumers, because it allows consumers to taste before they buy or explore wines by buying only one bottle initially — rather than having to visit the winery or buy multiple bottles through a wine club.  “Winery direct” arrangements allow customers to discover a new varietal or product with a limited cost outlay.

All that said, I have to admit, while the sale contained four pages of wines that were “winery direct,” I’d heard of only one of them.  It’s possible that some wineries seek to establish “winery direct” arrangements to get their wine into large retail outlets at a lower price in an effort to build awareness and generate sales of their wine.

The bottom line — do your research, but don’t be afraid to explore different wines to discover what you like at the price you prefer to pay.

Enjoy!