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Prices of bottles, cases, boxes and wine labels go through the roof

By Vitisphere April 06, 2022
Prices of bottles, cases, boxes and wine labels go through the roof
While as citizens we all hope for a speedy resolution to the conflict in Ukraine, it is hard to say when costs will fall, or if they will rise again. - crédit photo : Inessens

he situation is unprecedented. Russia’s invasion of Ukraine has led to a surge in energy prices that is being passed on at breakneck speed and at unrivalled levels to costs of industry supplies across-the-board. The relentless increase in the price of dry goods already hit the headlines a few months ago, due to the post-Covid rebound in global demand at the beginning of 2021, but with the arrival of spring 2022, the hike seems to have worsened. Price lists all increased at once on April 1. With such sudden variations in prices and availability, “we live from day to day”, says Philippe Cazaux, director of the Bordeaux Families co-operative group, which farms 5,000 hectares of vines, has 300 member growers and represents 10% of AOC Bordeaux. He sums up the current situation: “We are extending deadlines and increasing costs: the people organising the bottling have turned into raw material suppliers”. In fact, with bottling comes a sigh of a relief, because it means that all the different strands have been successfully brought together, which can be challenging for some bottles and labels.

Pressure on supplies has led to “a very, very challenging time, which I've never experienced for dry goods”, says Pierre Cohen, managing director of Cellier des Princes in Châteauneuf-du-Pape, where the 130 winegrowers farm 515 hectares of vines. Reporting increases ranging from 20 to 45% on bottles and boxes, Cohen also quotes supply delays of up to 25 weeks for capsules: “We have avoided delaying any bottling, but the situation can be concerning”. Especially given the lack of clarity for the future.

Russia’s invasion of Ukraine has brought about “a lot of volatility and unpredictability”, says Jacques Bordat, president of the Federation of Glass Industries. He says he has no knowledge of his members' pricing policies, but comments that his industry “has production costs that increase with energy and supplies. This is bound to have an impact on cost prices. The question is, how far will it go tomorrow? We don't have that answer at the present time”.

All Comments (2)
Charlotte Allen Le 11 avril 2022 à 21:23:03
The problem of supply started whilst we were still in the middle of Covid, despite there being no restrictions on bottle manufacturers to close. Both France and Spain are glass producing countries, so problems in the chain of supply are difficult to explain. The price of bottles has been increasing for well over a year now, when energy prices were still stable and long before Russia started to amass its troops on the Ukrainian border. The war may be the current excuse for profiteering. I´d love to hear what last´s years excuse was...
Dissenter Le 07 avril 2022 à 03:32:24
The least informative lead WB article of all time. Blaming Russia for price increases is ridiculous. Total puff piece.
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