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PACKAGING 48 WINES&VINES March 2016 The Changing Landscape of Wine Bottles Glass sales strong in spite of widespread imports; plastic makes inroads with major brands By Jane Firstenfeld W inemakers and packaging designers have confirmed that the wine industry re- mains conservative when it comes to adopting new presentations (see "De- signer Dreamscapes" in the January 2016 issue). New bottle shapes and sizes are a hard sell—especially on retail shelves—for well- documented reasons. Packaging suppliers, however, continue to introduce new options and find buyers willing to invest in small alterations to make their wine stand out and even raise its perceived value. Glass bottles manufactured in the United States and Europe remain high-quality options, while complaints about quality and consistency from low-cost Asian imports continue, accord- ing to wine industry sources. Glass prices have remained relatively stable in the past year. Glass acts Nigel Dart, senior director of Gallo Glass, pro- vided Wines & Vines with details related to the subsidiary of E. & J. Gallo. While increasing imports from developing countries have brought decreased costs for wineries willing to use im- ported bottles, "Costs for locally sourced glass have been stable through technology improve- ments, light-weighting initiatives and improved operating efficiencies. Gallo Glass has seen pric- ing remain relatively stable in an inflationary environment for manufacturing inputs." Dart noted that glass costs are heavily influenced by the cost of raw materials, labor, energy and environmental compliance costs. "Imported glass can sometimes come in at a discount due to lower costs for some of the key inputs—especially lower labor and environmental compliance costs." He added that Gallo Glass has advantages over importers including a modern fleet of natural gas and oxygen furnaces with low en- vironmental impacts and energy requirements. Recycling rates of approximately 50% not only reduce the amount of waste that goes into landfills, they also reduce greenhouse gas emis- sions and energy use, he said. A local manufacturer in California, Gallo Glass has a full-time workforce of 690, mak- ing it a major employer in the San Joaquin Valley. "We employ a highly skilled work- force and are committed to training and development through apprenticeship pro- grams and other initiatives," Dart said. Currently Gallo Glass has 14 machine lines, and the company has made recent capi- tal investments to increase output while re- ducing energy use and improving quality, according to Dart. "This commitment to growth and invest- ment will continue when the next furnace is replaced in 2017," he said. Manufacturing location affects price Glass manufacturer Verallia produces bottles in Europe, but the company now offers in- creased services in North America. "Our prices are about the same, approximately 1.5% higher per year based on inflation," said brand development manager Isabelle Le Graët. "Between 2013 and 2015, the ex- change rate between the euro and the dollar also helped us to lower prices." She reported: "According to my customers, Chinese bottles have not improved, and I got new leads from customers who've seen their KEY POINTS Glass bottles remain the standard, though prices have risen with inflation. PET is making incursions—both in small 187ml bottles and in traditional 750ml packages. More elaborate bottles and punts are becoming more popular for higher end brands. Gallo Glass has 14 machine lines and employs 690 full-time staffers in California's San Joaquin Valley.