WINERIES - Q2 2022 Industry Update

Industry Update - Canadian Wholesale Sector

2022 - Quarterly Update

Glass Bottle Prices Rise

Some wineries are reporting sharp upticks in prices for glass bottles, wineries have seen prices for bottles rise by as much as 20%, according to a recent report by Rabobank. The rise in prices is mostly for higher-end bottles imported from Europe. Glassmaking uses large amounts of natural gas, which has seen massive spikes in pricing since Russia’s invasion of Ukraine. Rabobank reports natural gas prices in Europe have risen as much as 550%.

In the US, fuel costs account for about 10% to 20% of the cost of making glass bottles.
In Europe, fuel accounts for 30% to 40% of bottle-making costs.

While some vintners are looking at raising prices to cope with the higher cost of bottles, Rabobank also recommends vintners look to alternative lightweight packaging and source packaging materials closer to where products are made and consumed.

News Spotlight

Wine Market Sales up 16.8%

Full Article in Forbes

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