WINERIES - Q2 2022 Industry Update
2022 - Quarterly Update
Glass Bottle Prices Rise
Some wineries are reporting sharp upticks in prices for glass bottles, wineries have seen prices for bottles rise by as much as 20%, according to a recent report by Rabobank. The rise in prices is mostly for higher-end bottles imported from Europe. Glassmaking uses large amounts of natural gas, which has seen massive spikes in pricing since Russia’s invasion of Ukraine. Rabobank reports natural gas prices in Europe have risen as much as 550%.
In the US, fuel costs account for about 10% to 20% of the cost of making glass bottles.
In Europe, fuel accounts for 30% to 40% of bottle-making costs.
While some vintners are looking at raising prices to cope with the higher cost of bottles, Rabobank also recommends vintners look to alternative lightweight packaging and source packaging materials closer to where products are made and consumed.
Wine Market Sales up 16.8%
What do we do:
Malahat Valuation Group specializes in providing independent business valuation and commercial real estate appraisals to owners of established businesses and their professional advisors.
Why it matters:
When business owners and their professional advisors need to sell, leverage or reorganize their assets, we answer the age-old question of "what is it worth"?
We provide our clients and their advisors advisor's peace of mind by providing professional valuations and appraisals that stand up to scrutiny from the Courts, Lenders, and the CRA.
Malahat Valuation Group Inc.