Wine industry shifts to bulk solutions

In line with international trends, more and more South African wine is being shipped in bulk, says Hans Calitz of Central Logistics. “There are various reasons why there has been a switch from cased bottled wine to bulk shipments,” said Calitz, “ranging from a change in production and consumption patterns to the impact of innovation and technology on the industry.” This includes the advent of the flexitank that offers more versatility while efficient bottling plants closer to end markets offer more competitive pricing. Not only does bulk wine transportation logistics provide a safe and reliable alternative to shipping masses of glass across the world, it also has environmental benefits and is ultimately a more cost-effective way of transporting the product. “By shipping in bulk, wine suppliers are able to supply wine at a more affordable price,” said Calitz. “This is due to savings in transport costs, import duties, glass and bottling costs, working capital and even foreign exchange exposure due to the cost of packaging being assumed in the destination market currency.” According to a recent study by Rabobank International on the rise in the global bulk wine trade, the ability to ship wine in bulk has had growing implications for how the industry conducts its business. “The dramatic rise in bulk wine shipments relative to bottled wine shipments over the past decade has been somewhat symptomatic of how the world’s major wine import markets have evolved,” says the report. “Shifting competitive dynamics in markets such as the UK, the US and Germany have led to subtle yet significant changes in how value is shared by producers of popular premium wines. “As many producers confront the legacy of a decade of oversupply and the convergence in quality in the popular premium wine market segment, the very nature of the bulk wine trade and the competitiveness of the world’s major wine-supplying nations have been brought into sharper focus.” Central Logistics is the exclusive agent in South Africa for The Braid Group, a UK-based logistics company. They are also the owners and manufacturers of bulk container solutions for the transportation of liquids such as the Flexitank. But, said Calitz, it is not only in the transport of wine that containerised bulk is gaining popularity. “Containerised bulk as a sector has seen significant growth on its own in the last few years and it continues to see growth,” added Calitz. “More and more general bulk cargo is being moved to containerised bulk as it allows for easier handling, is more cost-efficient and less timeconsuming. Added to that is the environmental benefit as it does minimise carbon footprint significantly. If you ship in bulk then it is less cargo per TEU than when one is using containers for bulk.” CAPTION 1 The Flexitank … helping to minimise carbon footprint. CAPTION 2 Interbulk’s ISO tank ... Central Logistics is the exclusive agent in SA.