Bottles Bottleneck in Germany
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What does #CocaColaCompany have in common with wine producers? Glass.
#Germany has just had the best #wine harvest in nearly a decade, with 9.8 hectolitres produced in 2018 (up 30.6% from 2017). Across #Europe, a similar growth has been registered, with harvest volumes rising by almost 20% during the past year, especially thanks to the strong production that #Italy (14%), #Spain and #France (17%) recorded. In other terms, this means having 20 to 27 more hectares of wine production on top of the existing quantity with respect to the previous year, together with as many bottles needed to meet the demand created by the greater volume. This dramatically destabilized wineries all over #Germany, with waiting periods lasting for as long as 3 months; a shortage of glass containers – namely, bottles – that is mainly related to a higher demand but also to a greater use by the typical soft-drink makers (in need of larger and more regular orders with respect to wine producers). According to the Federal Association of the German Glass Industry (BV Glas), 10 glass producers generate around 20% of the whole #German glass industry revenues. This market is particular: it already operates throughout the whole year at a 24/7 pace. Significant increases in demand simply cannot be sustained, with 2.8 billion bottles per year as the current production capacity. Soft-drink companies like #CocaColaCompany (#NYSE : KO) are becoming more ecologically-oriented, therefore switching back from #PET bottles to glass ones. The impact of this kind of switch on glass manufacturers is incredible, especially when talking about a soft-drink giant like #CocaColaCompany that currently needs as much as 50,000 to 60,000 bottles per hour to fulfil customer expectations.
A temporary bottleneck that is going to be solved in the next few months, but at what cost? What about the family-owned wineries that are currently not able to deliver the record-high amount of wine they were able to register?
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