Glass shortages poses problems for holiday beverages9 Dec 2021
Continued delays in shipping, as well as labor shortages, have led to a shortfall in the glass bottles that winemakers and distillers use to bottle up cheer during the holiday season. Due to this scarcity in packaging, CNBC reported that consumers may not be able to purchase their preferred wine and spirits for the holidays.
This shortage is coming at one of the largest retail seasons for alcohol manufacturers. Both Christmas Eve and New Year’s Eve are two of the biggest days of the year for alcohol sales.
China produces a large proportion of the glass bottles used by alcohol manufacturers worldwide. However, trade wars, tariffs and pandemic-relate supply chain issues have forced countries from the U.S. to Chile to look either regionally or domestically for other glass bottle manufacturers. Not only is it difficult to simply source new bottles, but shipment delays and limited access to materials have resulted in higher costs for manufacturers.
Other areas of the CPG space have also seen squeezed supply chains resulting in higher prices for materials. The result is that companies from Kraft Heinz to Nestlé have had to pass these inflated costs along to consumers. While CNBC did not report that a similar trend was on the horizon for alcohol manufacturers, the news outlet did note that these bottle shortages have altered or shortened productions schedules, which may make it more difficult for consumers to find their desired alcohol choice in stores.
CNBC reported that ocean shipping container costs, which many companies use to obtain a steady supply of glass, have risen dramatically, in some cases tripling to cost upwards of $20,000. The scramble for glass containers has become so tight that companies like Constellation Brands, which sells Pacifico Mexican pilsner and Modelo Negra in glass bottles, have foregone growth opportunities because they simply cannot provide sufficient product to meet the demand that already exists.
At the same time that the glass packaging for libations is in short supply, consumers have increased their desire for alcoholic beverages. In the U.S., sales of spirits rose 7.7%, according to the Distilled Spirits Council of the United States. Wine sales in the U.S. spiked 60% in March of 2020 and experienced continued growth in subsequent months.
As manufacturers search for alternative solutions to meet the volume demands for customers, the U.S. is ramping up domestic production of glass bottles. In the first 9 months of 2021 spirit bottle production increased by 3% while imports of 750-milliliter bottles jumped 14%, according to the Financial Times.
The world supply chain continues to have difficulties in supporting surging consumer demand for a wide variety of products. Alcohol is no exception, and consumers may have to put forth additional effort to purchase their favorite libations if they are not willing to experiment with alternative brands.
Capri Sun adds monk fruit to US juice drinks to reduce sugar by 40%
15 Aug 2022
With parents increasingly focusing on reducing their children’s sugar intake, Kraft Heinz is using monk fruit to cut sugar in US Capri Sun products to deliver on both taste and health credentials.Read more
How plant-based milk brands can address taste and texture challenges
12 Aug 2022
Today’s consumers want plant-based milk products that mimic the desirable sensorial attributes of their non-dairy alternative counterparts. In response, brands and manufacturers are focusing on taste, texture, education and sustainability.Read more
Diageo unveils plans for €200 million carbon-neutral brewery in Ireland
1 Aug 2022
Diageo has unveiled plans for a €200 million carbon-neutral lager and ales brewery in Ireland – the country’s first.Read more
Shifting trends: Analysing the impact of high inflation in India
25 Jul 2022
Despite food and beverage categories in India feeling the pinch of increasing inflation, the overall outlook remains upbeat as governmental support steps in and evolving consumer purchasing patterns shape the sector.Read more
Gen Z consumers are thirsty for variety in beverages
31 May 2022
As Gen Z consumers gain disposable income, they are looking to quench their thirst with beverage brands that are clean, sustainable and socially responsible, according to a report from the global consumer trend forecaster WGSN.Read more
Tea flavour innovation in China unites tradition with modernity
13 Apr 2022
Chinese tea brands are innovating with new flavours, blends and formats, and even making a foray into food with tea-flavoured food and drink launches.Read more
Low- and no-alcohol beverages see significant growth globally
11 Apr 2022
Alcohol-free and low-alcohol beverages are helping drive growth for many alcohol manufacturers that have been struggling to adapt to the changing tastes of the market in recent years.Read more
Brand licensing deals rise post-pandemic as consumers seek familiar and healthier products
8 Apr 2022
Longer-term brand licensing deals between food companies have become more popular in recent times – a trend set to continue and flourish, partly thanks to the pandemic, licensing experts told Ingredients Network.Read more
Baby formula brands innovate with clean label launches
7 Apr 2022
Clean label baby food is receiving a significant amount of development, with two recent brands ByHeart and Bobbi launching formulations certified by the Clean Label Project with a Purity Award.Read more
Consumers seek ashwagandha-fueled relaxation in beverages
28 Mar 2022
Ashwagandha has been used in India for centuries, and it is only in recent years that consumers in the US and now Europe are realising its health benefits, with manufacturers starting to add this adaptogen to beverage formulations.Read more