GLOBAL: Wine bulk shipments almost half of all exports - research
The shipping of wine in bulk is expected to grow even more in the future, to the detriment of bottled wine shipments, according to a report from Rabobank.
The report, 'The Incredible Bulk: the Rise in Global Bulk Wine Trade', has been released this week and details factors that have driven the share of bulk wine exports to nearly double over the past decade, particularly among New World suppliers. The bulk format now accounts for almost half of total wine export volumes globally.
“The democratisation, commoditisation, innovation, and oversupply of wine, along with currency rates and changing trade flows, have changed both the conventional supply chain model and the distribution of value along that chain,” says Rabobank in report.
Cost savings are thought to be the overriding driver of bulk shipping, stripping US$140m in transport, duty, packaging and associated costs from supply chains of New World producers, the bank estimates.
The shift in trade to bulk shipments equates to well over $1bn generated in destination markets versus at the production source.
“Suppliers who cannot compete on a commodity product level … will need to emphasise product innovation and brand differentiation in order to survive,” the company says.
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