Glass Purchasing Trends June 13, 2014

Wine Business Monthly, April 2014

Supply Side Economics:
Domestic vs. Imports

Erica Harrop, owner of Global Package in Napa, sees a mixed bag in glass
supply. “I think there is going to be a shortage, and, in fact, there might be
a disruption in supply this year in higher-end glass. Lower-end glass should
not be a problem since there are a number of factories domestically and
internationally that service that line. About three years ago, the proportion
of glass coming from China comprised 15 percent. Today it is certainly
much, much more,” Harrop said. “The reason is simple: our demand for
Global Package’s market, mostly higher-end glass, is growing, and product
availability of this type of glass in the U.S. is static.”
Encore Glass’ VP of sales and marketing Kyle Rossler said, “In our estimation,
there will be a tightness, if not an out and out shortage, of glass this
year. Wineries that can forecast and plan accordingly can get the glass they
want. Those that wait until the last minute may be disappointed and will
have to settle for something, perhaps not the right size or weight.
“Since there are no other furnaces being built in the U.S., the glass has
to come from somewhere. All glass companies would love to run 365 days
and sell all their output. But you can’t turn on and off a glass furnace like a
printing press.” Rossler said. “All glass furnaces need to go down on a periodic
basis for maintenance.”
“With North American capacity fixed, more globally sourced wine bottles
are coming into the U.S.,” vice president of Saxco International’s wine group
David Schwandt said.