Wine industry face another problem with bottles

In week 13, there has been another problem of bottle cost in the wine industry. Wine final product will have a higher cost and many suppliers are struggling to get orders that were made with the past delivered as renegotiation is needed or their profit margin will take a major damage.

During the past weeks, some of them had to really struggle to get their bottles’ orders on time so that they could keep up to their agreements. This happened because of the difficulties on getting transportation due to all the truckers’ strikes in Spain (country from where a lot of these orders come from) and road blockages that existed in some places not to let working truckers pass through. And on 29 March, they got the news that price per bottle would go up about 50% depending on the various factors upon purchase.

A single bottle that costed 30ct on 28 March, will cost 45ct on Week 14. Reserves may not possible due to the reasons already explained. If, mainly the exporting wineries, don’t fulfill their orders and keep up to their contracts thousands of dollars in loss may come their way. They will need to find other options to get materials and even if they take some loss for this price increase, it will always be better to keep up to their word and deliver.