vertical focus | Beer, wine and spirits – News Couple

vertical focus | Beer, wine and spirits

Tags: food logistics

Some countries are in low spirits

Liquor shortages in many US states are likely to continue until 2022, according to local news agencies. Bars and restaurants are struggling to stock their shelves now that some COVID-19 mandates have been lifted and consumers are returning to adventure, and high demand is straining supply. Three reasons why:

1. State Restrictions: North Carolina establishments must purchase alcohol from the state’s Alcoholic Beverage Control (ABC), and from Vermont and Ohio’s Department of Alcoholic Beverage Control. These state-run locations have been stocked inconsistently, with July 2021 sales at ABC stores up 38% compared to July 2019.

2- Lack of manpower: Labor shortages among truck drivers, dock workers, and warehouse staff over crowded ports, and slow manufacturing, and more expensive raw materials have disrupted liquor supply chains and small businesses across the country.

3. Material: Not only are there a shortage of bottles, aluminum cans, corks, and kegs for small breweries and distilleries, but there is also a shortage of packaging materials such as label paper and crowns on top of bottles.

Uncorking bottles and sustainable packaging

A new generation of packaging could make the production of wine, spirits and beer cheaper, faster and more sustainable. Here’s a look at some of the packaging innovations in the business, Beverage Media Group reports:

New plastic materials: British packaging company Garçon Wines has created a flat bottle of wine made from recycled PET, which is 87% lighter than glass. They are tightly packed in cartons with no additional packing, making it 91% more convenient for products on each pallet. Better space utilization, shorter loading time and faster delivery result in savings for winemakers and a 50% reduction in emissions.

Glass replacement: The Frugalpac paper bottle, similar to the bag in the box but molded into a Bordeaux-style bottle shape, is made from 94% recycled, chemical-free cardboard fused with water-based glue. Five times lighter than a bottle, it resists spills, moisture, and breakage from a height of five feet. And the carbon footprint is 84% ​​lower than that of glass.

Six-pack rings: Corona recently introduced a six-pack holder of recycled barley straw. Design firm Spearhead Group has eliminated the plastic packaging of Don Julio’s margarita kit, replacing it with a clamshell box made of cardboard that hugs the bottle, which is 20% cheaper and lighter.

Returnable bottles: The New York-based company Good Goods has created a reusable bottle of wine, which gives a $1 credit for every bottle that is returned. The incentive works: The pilot saw an 88% return among 4,000 consumers.

product shrinkage: BrewVo’s patented brewing method separates water and alcohol, producing a non-alcoholic beer with six times the flavor intensity. Shipped in a small bag in a box, water and alcohol are added at the destination. It is 86% lighter than barrels, which greatly reduces shipping emissions.

Alcohol on demand with slurpee chaser

On-demand delivery has become a necessity during the pandemic as consumers have been mostly eating and drinking from home – so much so that it has become an expectation. As a result, 7-Eleven increases its convenience factor by delivering beer and wine to consumers’ doors within 30 minutes to 1 hour.

The convenience store chain has teamed up with Minibar Delivery, an alcohol delivery service provider, to introduce the new service. The initial launch will take place across 600 7-Eleven stores in Florida, Texas and Virginia.

Consumers can use their Minibar Delivery app or website and choose from 7-Eleven’s extensive selection of wines and beers, as well as in-store best sellers like Slurpees, hot dogs, pizza, and chips.

In the past year, 7-Eleven has doubled the size of its delivery service, with 90% of its stores offering delivery via third-party providers or its own app, the company says.

Anheuser-Busch: Sustainability on tap

Big Brewer Anheuser-Busch is investing $64 million to install solar panels and emissions-reduction technology at its Los Angeles brewery, the largest solar installation of any brewery in the United States. Its other green initiatives include:

  • Make all local beers with 100% renewable energy by 2021.
  • Reduce carbon emissions by 25% across the value chain by 2025.
  • Make 100% of their packaging from mostly recycled or returnable content by the end of 2025.
  • It has recently begun to market products in low-carbon aluminum cans.
  • Implementing the How2Recycle labeling system to help consumers recycle and address the end of their value chain.
  • The new brand was introduced in the summer of 2021 for its Bud Light, the first major beer to use the How2Recycle label.

Grab-and-Go cocktails rock the manufacturers

Consumers are increasingly in demand for healthier and more convenient alcoholic beverage options. Manufacturers are getting into the mix by offering more single-serve packages like cans, as well as products with less alcohol. Shippers and service providers should monitor liquor supply chain trends, says:

  • Ready-to-drink spirits-based cocktails, usually available in single-serve packages, will retain the largest share of revenue from 2021 to 2028.
  • Cans are rapidly gaining ground in the wine industry due to convenience (no screw wrench needed), lower costs, and recyclability.
  • In terms of packaging, cans will see the highest growth due to the increased demand for easy-to-carry and grip packages.
  • Canned wine is easy to store and stack, making it the preferred choice for e-commerce distributors.
  • Wine-based beverages, seen as healthier than spirits and malt, are the second fastest growing segment.
  • Consumers are turning to low-alcohol drinks flavored with juices such as lemon, cranberry, orange, and passion fruit.
  • As more and more ready-to-drink, organic, gluten-free, and keto-friendly cocktail options become available, more consumers are buying them.
  • More premium options for pre-mixed cocktails with high-quality flavors, flavours, and packaging design will enter the market and spur growth.

Craft brewers can’t do that

Breweries have embraced friendly cans instead of kegs when bars and restaurants close, and are now struggling to find suppliers of aluminum cans due to high demand.

Countries with a high percentage of craft breweries are affected the most. For example, more than 30 breweries in Colorado have closed during the pandemic.

As more consumers seek sustainable alternatives to single-use plastics, demand for cans is unlikely to subside. Furthermore, sales of canned steel smelting soared to more than $4.6 billion last year, Nielsen reports.

There can be a few manufacturers in the United States, but they mainly work with large breweries such as Anheuser-Busch or Molson Coors. Most craft brewers, which are known to produce 6 million barrels of beer or less annually, do not have access to the same resources.

As a result, some beer makers are sticking new labels on empty cans sealed with a beer they no longer sell. Some breweries that had not bottled beer on site before the pandemic added small canning lines or rented mobile cans to bring equipment into the plant.

Ball, one of the world’s largest can producers, is increasing new production lines and building three new plants, adding at least 6 billion units of can capacity.

Deutsche Post DHL tummies arrive at the bar

In its largest acquisition in 16 years, Deutsche Post DHL has signed an agreement to buy Germany-based JF Hillebrand, which focuses on ocean freight, transportation and logistics for beverages, bulk liquids and other products that require special care.

Hillebrand offers specialized capabilities that will provide DHL customers, particularly in the liquor, food and bulk liquid sectors, with additional value-added services, the company says.

For example, it will provide access to high-quality flexible tanks, which are flexible bags that can fit inside standard shipping containers, and are used to transport liquids in bulk. Hillebrand’s IT platform will align well with DHL’s toolkit and digitization strategy, which is focused on simplifying and optimizing freight operations for customers.

While DHL Global Forwarding already offers specialized alcohol delivery through the Gori wine and spirits business, Hillebrand will add new services that increase volumes on many trade lanes, the company says.

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