Since the beginning of this year, the price of glass has almost “moved up all the way”, and many industries with high demand for glass have called “unbearable”. Not long ago, some real estate companies said that due to the excessive increase in glass prices, they had to re-adjust the speed of the project. The project that should have been completed this year may not be delivered until next year.
So, for the wine industry, which also has a great demand for glass, does the “all the way” price increase operating costs, or even have a real impact on market transactions?
According to industry sources, the price increase of glass bottles did not start this year. As early as 2017 and 2018, the wine industry was forced to face price increases for glass bottles.
In particular, as the “sauce and wine fever” craze across the country, a large amount of capital has entered the sauce and wine track, which greatly increased the demand for glass bottles in a short period of time. In the first half of this year, the price increase caused by the increase in demand was quite obvious. Since the second half of this year, the situation has eased as the State Administration of Market Supervision took action and the sauce and wine market returned to a rational level.
However, some of the pressure brought by the price increase of glass bottles is still transmitted to wine companies and wine merchants.
The person in charge of a liquor company in Shandong said that he mainly deals in low-end liquor, mainly in volume, and has a small profit margin. Therefore, the increase in the price of packaging materials has a great impact on him. “If there is no increase in prices, there will be no profits, and if the prices increase, there will be fewer orders, so now it is still in a dilemma.” The person in charge said.
According to industry sources, the price increase of glass bottles did not start this year. As early as 2017 and 2018, the wine industry was forced to face price increases for glass bottles.
In particular, as the “sauce and wine fever” craze across the country, a large amount of capital has entered the sauce and wine track, which greatly increased the demand for glass bottles in a short period of time. In the first half of this year, the price increase caused by the increase in demand was quite obvious. Since the second half of this year, the situation has eased as the State Administration of Market Supervision took action and the sauce and wine market returned to a rational level.
However, some of the pressure brought by the price increase of glass bottles is still transmitted to wine companies and wine merchants.
The person in charge of a liquor company in Shandong said that he mainly deals in low-end liquor, mainly in volume, and has a small profit margin. Therefore, the increase in the price of packaging materials has a great impact on him. “If there is no increase in prices, there will be no profits, and if the prices increase, there will be fewer orders, so now it is still in a dilemma.” The person in charge said.
It can be seen that the current situation is that for manufacturers, distributors and end users selling “mid-to-high-end” wine brands, the increase in the price of glass bottles will not lead to a significant increase in costs.
Manufacturers who produce and sell low-end wine have the deepest feelings and put pressure on the price increase of glass bottles. On the one hand, costs increase; on the other hand, they dare not easily increase prices.
It is worth noting that the price increase of glass bottles may exist for a long time. How to solve the contradiction between “cost and selling price” has become a problem that low-end wine brand manufacturers must pay attention to.
Post time: Nov-11-2021