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An unexpected growth in the demand for glass has led to a serious bottle shortage for most part of this year - with the result that South African wine producers are facing the possibility of losing listings and foreign credibility if they are not able to deliver orders. At the same time, bottle suppliers are struggling to source bottles to import, since the European bottle supply looks even worse. With constant dialogue between wineries and suppliers, along with investments to increase the glass capacity, the wine industry does, however, appear to be handling the problem quite well. EDO HEYNS filed this special report.
According to Consol, increased and unexpected requirements arising from export promotions, new entrants and transferred demand in the wine industry have pressurised an already tight environment.
Louise Jager, spokesperson for Consol, commented that the wine bottle shortage had eased somewhat of late, although the shortage was expected to continue for the next few months. The wine industry accounts for 22% of Consol’s volume and is of major importance to Consol, according to group managing director Mike Arnold.
Consol expanded its annual capacity by 90 000 tons in 2006 and recently rebuilt a furnace at its Bellville plant through an investment of R410 million with a view to add 40 000 to 60 000 tons to its capacity. This furnace initially produced wine and soft drink bottles, among other packaging solutions. Until the shortage has been eradicated, Consol will continue to import bottles to satisfy the growing demand from all sectors.
Kathleen Hoogenhout, spokesperson for Nampak Wiegand Glass, said an unexpected increase in the consumption of beer and ready-to-drink beverages (RTD’s) and a supply constraint from one of their main suppliers are the two main reasons for the shortage. Hoogenhout admits that the entire market has been surprised by the demand for screwcap finish bottles and that most of the relevant forecasts in this respect have not been accurate. It’s difficult to predict accurately when this situation will stabilise as forecasts continue to be outsold.
Hoogenhout reports that NWG has this year already increased its supply to the wine industry by 30%. She added that the addition of another furnace to the two existing NWG furnaces would, however, not be viable: a furnace dedicated to the production of wine bottles would increase the capacity by roughly 200 million bottles, which by far exceeds even the unanticipated demand.
One of the existing furnaces is scheduled to be rebuilt in March 2008. During this time bottles will be imported according to prevailing demand.
Distell is not experiencing a shortage in wine bottles and was only affected by a shortage of bottles for ciders and ready-to-drink beverages, says communications manager Sonia Jamoulle. This coincided with a CO2 shortage and an unstable supply of water and electricity. Bottles were imported from international suppliers to temporarily overcome the shortage and sufficient glass has been secured for the upcoming season.
Wayne Matthys, KWV’s supplier relations & sourcing manager, said the bottle shortage did not have a big impact on them. In July a constraint from one of the suppliers that lasted for two weeks, was resolved by importing bottles. They have, however, recovered from the backlog and are now back on schedule.
The bottle shortage has brought up the increasingly important issue of the carbon trail left by the production and distribution of a bottle of wine and the necessity for recycling. Importing a bottle from Brazil, filling it with wine and then returning it to the USA, does not make sense. When the international bottle shortage is resolved, exporting bulk wine to be bottled at its destination, is a less expensive and more logical option, while alternative new packaging, like the pouch from The Company of Wine People, is convenient and in line with the wine industry and the world’s progression towards environmental friendliness.
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