Here’s Why You’re Actually Paying For The Bottle When You Buy Wine
When you buy wine you might be surprised to discover that the real is cost is coming from the glass bottle it's housed in, here's why.
This article is more than 2 years old
Nowadays, every product is getting more expensive. From the price of gas to the price of home goods, the cost for just about every necessary item has multiplied throughout the pandemic. Whether it’s geopolitical conflict, manufacturing delays, or uncontrollable weather patterns, the combination of unfortunate events has led industries to jack up costs for their products. Wine has also received this particular price increase, with wineries trying to rectify the global effect on the worldwide industry.
One of the unique struggles wine manufacturers are dealing with is the physical bottle the beverage comes in. In the coming months, wineries might have to utilize a new form of packaging to cut down on costs. Though bottles are ubiquitous, the fuel and labor it takes to transport one bottle is a pricy investment. Alternative materials may be the new standard for wine packaging, even though the bottle is an iconic staple for wine distribution.
Wine bottles themselves are relatively weightless. But stack thousands of wine bottles together, and you have a considerably heavier load. Since jet fuel has exploded in cost over the past year, shipping heavier bundles creates a more significant expense for the wineries. Today, gas prices are up 70% more than in 2021, making for an unbelievably astronomical cost to ship something as simple as wine bottles. Even though other materials may be unappealing to wineries and their customers, a transition toward plastics and aluminum cans could become more prevalent as jet fuel continually increases.
According to global strategist Stephen Rannekleiv, the cost to manufacture glass wine bottles in the US is up by 20%. Not only does this cost contribute to the gas price increase, but to the physical glass manufacturers who supply the material. Rannekleiv expects glass markers to bump their labor costs throughout the year, potentially increasing glass bottle prices. Raising the glass industry’s prices isn’t only for transactional purposes but mitigates expenses from the skyrocketing costs of physical materials.
In Ukraine, the cost of glass manufacturing has doubled over the last month. Since Ukraine is dependent on Russia’s natural gas resources, the eastern European country and its neighbors have felt the massive financial impact of the geopolitical conflict. The exponential increase of fuel in Ukraine has skyrocketed prices for every industry, including glass. For European countries, rethinking wine packaging is even more crucial since wine bottle costs are now borderline unaffordable for consumers and businesses.
Though it might be a difficult transition for wine aficionados, beverage companies have already conjured new, innovative ways to package their alcohol. Lighter materials like cans for hard seltzers and wines have become more popular due to their inability to shatter and cost-efficiency. This trend is likely to continue for wineries and distilleries worldwide, as the bottle price increase would put beverage companies in an eventual financial deficit.
The cost of transportation has risen unequivocally and has put every industry under economic stress. As companies reconcile with the new gas prices, many strategize on how to cut expenses back. For wine companies, ditching bottles for lightweight, easily shippable materials is the best idea to limit unnecessary costs.
