(Premium) wine logistics – market update
For many years now, Newcorp Logistics is one of the very few companies focusing on fulfilment for alcoholic beverages. At Newcorp it all started with the storage and distribution of higher volumes of excisable cargo and many aspects have led to a subtle shift towards fulfilment. Certainly, wine logistics have become one of our focus areas. What are the trends to watch, and can we expect any problems in this market?
The quality of the wine and harvest
Although wine is harvested all year long, the bottles of wine are very susceptible to climate change and extreme weather conditions, both warm and cold. The past few months we have seen temperatures on various continents of almost 50 degrees Celsius! This could negatively influence the quality of the cork, as it can dry it. Wine growers all over the world are paying close attention to this rising number of days with extreme temperatures and it might impact their harvest, which we will notice in the next season. Next to the impact on the harvest, it will also impact supply chain choices. The entire world needs to focus on sustainability and certainly the demand for organic and ‘green’ wine is rising. As Newcorp Logistics, we always try to choose the most sustainable transportation options and we are making our warehouse ‘greener’ every day.
The demand in the market
When this pandemic started, at Newcorp Logistics, we also expected a huge impact on the beverages market. And of course, the supply to hotel and catering industry completely stopped when these companies had to close their operations. Currently, these places are all open again and we are in the middle of the summer, so volumes have not only recovered, but they are also tremendous! We are truly happy for our customers, but it also brings challenges for logistics as you can read below.
Important factors and trends for logistics
The volumes are high, which makes the demand for storage capacity in Europe, transportation from and to Europa, and distribution within Europe more difficult. The demand in the container market is so high, that the prices for a container shipment have doubled and sometimes even tripled for some destinations. The importance of a reliable, steady partner for logistics is huge. If you have invested in a good, flexible, professional, and trustworthy partner for your supply chain movements over the past years, then this is the time to profit from that. It could be that you are still looking. In that case, contact Newcorp Logistics. We can be your game changer.