[naravara]

I know distilleries will often contract with one or more other distilleries to create a custom blended whisky to sell under their label to get some revenue while they wait for their first batches to mature. There are distilleries that basically specialize in doing this. I assume the wine market probably has similar strategies. I know 3 buck chuck basically started like this, buying overstock from other vineyards and blending them into a generic white or red wine.

[Nextgrid]

Out of curiosity, why would a company help out their future competitor?

[pavon]

My impression is that a large portion of the industry is already structured as distilleries that actually make the liquor, like MGP, and a bunch of labels that put their names on it (each different). Like how many name-brand items across grocery stores are all actually made by the same company.

[naravara]

You might be good at making whisky but not that great at marketing. Either way the market has a desire for generic, unlabeled product and people go in to fill the need.

[mschuster91]

because they may sell the same product, yes, but not compete. there will always be someone starting a new vineyard, distillery or whatever.

it's sort of like banks vs vc funds. both lend money to companies, but still they are not competing against each other.