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3 mins lecture

The shortage of glass handicaps the wine industry

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 The wine industry is more concerned than ever about the long lead times for the supply of glass bottles. The factories are affected by the increase in energy prices.

 

While the harvest is underway, the glass is missing.  The reason: the post-covid recovery and the war in Ukraine. And the situation is not likely to improve between now and 2024.

 

For many companies, the priority is to find a solution to sell their goods and store their spirits production.

 

Some of them are finding alternative solutions to counter this crisis.

 

Unidor, the largest bottler in the Dordogne, is considering stopping production temporarily. The company usually fills 15 million bottles each year. But since the war in Ukraine and the rise in fuel prices, its production has dropped significantly and delivery times are getting longer.

 

It is very complicated, the delays sometimes reach two or three months,” explained the president, Jean-Marc Fontaine, to the microphone of France Bleu Périgord. According to him, it would be necessary to ask customers “to change the size or color of the bottle, but it is very difficult.

 

The glass bottles cost up to 40% more than usual, says Jean-Marc Fontaine.  That would mean an increase of 10 cents on each bottle.

 

The most frustrating thing for bottling companies is to see their order books maintained while the longer delivery times for bottles prevent them from meeting them.

 

Partial unemployment

 

Rising energy prices are another cause of the glass shortage. In fact, it is forcing glass-producing factories to review their energy consumption, and therefore to reduce, and sometimes even stop, their production.

 

Among them, the company Duralex. The French company announced that it will pause production and resort to short-time work. “Producing at the energy rate of the day would generate unsustainable losses,” explains the president, José-Luis Llacuna. From November, the glass producer will put its furnaces to rest and its 250 employees on short-time working for a few months.

 

A difficult but less costly decision, which should make it possible to preserve activity and employment.

 

Another inflation-related disruption is the strikes in Spain. Truck drivers have stopped deliveries and blocked the roads to protest against the explosion in fuel prices.

 

A war with multiple repercussions

 

The current situation is also partly explained by the war in Ukraine.

 

The factory of one of Europe’s largest glass suppliers was hit by a bombing raid.

 

The question remains: should glass manufacturers and wine producers see the glass as half full or half empty?

Read also >

 

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 The wine industry is more concerned than ever about the long lead times for the supply of glass bottles. The factories are affected by the increase in energy prices.

 

While the harvest is underway, the glass is missing.  The reason: the post-covid recovery and the war in Ukraine. And the situation is not likely to improve between now and 2024.

 

For many companies, the priority is to find a solution to sell their goods and store their spirits production.

 

Some of them are finding alternative solutions to counter this crisis.

 

Unidor, the largest bottler in the Dordogne, is considering stopping production temporarily.

 

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The wine industry is more concerned than ever about the long lead times for the supply of glass bottles. The factories are affected by the increase in energy prices.

 

While the harvest is underway, the glass is missing.  The reason: the post-covid recovery and the war in Ukraine. And the situation is not likely to improve between now and 2024.

 

For many companies, the priority is to find a solution to sell their goods and store their spirits production.

 

Some of them are finding alternative solutions to counter this crisis.

 

Unidor, the largest bottler in the Dordogne, is considering stopping production temporarily.

 

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