From glass bottles to botanicals, Pennsylvania brewers shed light on the dilemma of the supply chain | 90.5 Visa

2021-12-11 02:54:59 By : Mr. Laughing Wang

Champagne toast. Hot Todi Whiskey. Wine plays a central role in many festival celebrations. But Pennsylvania brewers and manufacturers report that there are shortages in the supply chain this year, from glass bottles to labels to machine parts.

“Despite ordering the glass bottles in advance, the inventory sometimes takes a long time to produce or reach where we need it, so we have to contact other brokers,” said Alex Grelli, co-owner of Wigle Whiskey in Pittsburgh.

"If we order caps for bottles, we usually receive this material within two to three weeks. [Now] It has been delayed for almost three months," Charles Jacquin et Cie, who produces liqueurs and spirits in Philadelphia. Said Bryce Menk, chief operating officer.

At one point, Jacquin's label supplier was unable to obtain ink in a specific shade. Without it, they would not be able to mix any of the colors needed for the label.

"Not only can he not serve us, but he can't serve many customers," Menk said.

This influence will gradually penetrate into restaurants and other businesses that rely on alcohol sales.

In a recent hearing held by the Democrats of the Pennsylvania House of Representatives, William Reed, co-owner of Philadelphia Standard Tap, said that his usual collaboration with local breweries and breweries has encountered obstacles this year.

"No one can get glass. That's what hinders us all. We can't actually bottle what we want to create," he said.

Supply chain issues are a reality during the pandemic. Alcohol manufacturing shows how the lag in production, international sourcing, and increased demand can conflict with each other, and in some cases can limit the available products. Because of these circumstances, suppliers said they end up spending more, hoarding raw materials, and sometimes even completely changing products.

Wigle whiskey comes in a round, thick-bottomed transparent bottle, sometimes referred to as "Nocturne" or "Oslo". Grelli said that when their regular suppliers are in short supply, they will turn to third parties, which will increase costs by about 30% to 40%. Some botanicals—the ingredients for herbal wines such as gin or amaro—are sourced from all over the world, so the company has been stocking them to prevent shortages.

For example, gentian root and vanilla “come from across the ocean, and it may take some time for them to be replenished,” Greeley said. Planning ahead now means paying for more storage space to keep more raw materials.

Supply issues also led to Pennsylvania's imposing bottle purchase restrictions on certain products earlier this year.

Shawn Kelly, spokesperson for the Liquor Control Board, said that after learning earlier this year that certain products will no longer be shipped for the remainder of 2021, state-owned liquor stores are currently restricting 37 types of products. Sales.

The list includes products such as Don Julio Tequila Anejo and Dom Perignon Champagne Brut in 750 ml bottles, as well as Hennessy Cognac in a variety of sizes. Customers can only purchase two bottles of any restricted product at a time.

Some supply issues are related to the pandemic, but other issues are only part of the business. Kelly said: "Only one interruption somewhere on the production line" can stop production.

He said that he heard about the shortage of glass bottles in the summer, but some problems of mismatch between supply and demand have been brewing for many years.

"Bourbon whiskey has a long aging time. When you put the juice in a barrel 10 or 15 years ago, you might not have expected such an amazing demand in the future," he said.

As for Cognac and Champagne, one or two bad grape harvests in France will cause a chain reaction.

Kelly said that even small state-owned stores have 1,500 products, so shelves should not be empty. But if you want something in particular, his advice is to "go out shopping early."

The chaos in the supply chain also conflicts with a new pandemic reality: Americans have been drinking a lot of alcohol at home.

Researchers at Columbia University said that between March 2020 and September 2020, alcohol sales soared by 20%. At the same time, people consume much less alcohol in bars and restaurants. According to research conducted by the RAND Corporation, a survey on drinking habits at the same time found that respondents drink about 14% higher than before the pandemic.

Meeting this demand while dealing with unpredictable or slow supply chains is an important balancing act. Menk said that Charles Jacquin et Cie., founded in 1884, has been trying to update its brand during the pandemic, phasing out some products to focus on other products that sell better. It is also trying to standardize its products to make components easier to purchase.

The overall goal is to stay in the game, one of the most exciting moments of the year.

"If you missed the holiday or St. Patty's Day...then the customer has only another choice, and that is your competitor," Menk said.

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