The US market has seen sales of canned wines exploding, as consumers can’t get enough of them. This has led to a slowdown in the supply of the cans, as Jeff Siegel recently reported in Wine Business International.
Jeff writes: “Drink Bev, a California canned wine producer, has seen its volume increase eight-fold over the past two years. Which should be a good thing, right? Right — apart from the pandemic-caused supply chain bottlenecks that are hampering can producers of all kinds, be it beer, wine, or soft drinks.”
“What we found so far, having trouble with getting cans, only kicked in recently,” says Alex Butti, the Vice President of Operations for Drink Bev, which makes 250 ml cans for two whites and a rose from California’s Central Coast. “When we were doing less volume, we had no trouble sourcing cans. But when we outgrew our vendors, finding cans in the short term has been difficult.”
The difficulty in finding supply is coming from increased demand from consumers, who have increased canned beverage consumption during the coronavirus lockdowns across the US, as well as the supply chain failing to keep pace with increased demand.
“The can shortage doesn’t seem to be as bad as was the case for toilet paper and hand sanitizer in the early days of the lockdown in April,” says Butti. “It’s smaller companies that are having problems; there are regional shortages and fewer canned beverages at some national supermarkets, though not widespread.”
“Supply chain issues have resulted in longer lead times to get cans for filling — anywhere from one to eight weeks,” says Butti, “it’s not about a supply shortage as much as it is about taking longer for cans to get from manufacturers to bottlers. In addition, inventories at bottlers are significantly smaller than they were at the beginning of the year.” US canned wine producers, package their product in three different sizes: 187 ml, 250 ml, and 375 ml. By comparison, most US beer and soft drinks come in 12-ounce (355 ml) cans.
“Yes, there is a very high demand for the 250 ml format for wine at this time, as it’s a popular size for most beverages, like water and coffee,” says Heather Clauss, Chief Commercial Officer for California’s FreeFlow Wines. “So, some of our customers have indeed had some challenges procuring cans.”
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