Case Study

The benefits of importing wine in bulk

Boosting quality, logistical benefits and reducing CO2 emissions.

Key facts
As a result of GlassRite Wine, 199 million 75cl glass bottles are now filled with bulk imported wine each year in the UK - an increase of 79 million glass bottles. Use of recycled glass in the UK has increased by nearly 24,000 tonnes per year, as there is a greater demand for UK manufactured wine bottles. The increased use of recycled glass, and CO2 savings as a result of the increase in bulk importing, has saved more than 20,000 tonnes of CO 2 each year equivalent to taking over 6,000 cars off the road. Switching to the bulk importation of wine provides a range of business benefits, from increased product shelf life to reduction of around 40% in transport costs.

The UK is the worlds largest wine importer, with more than 1.3 billion litres entering the country each year.

which looked at the key issues and perceived barriers associated with bulk importing wine and the lightweighting of wine bottles.

Bulk importing of wine, for bottling in the UK, The project operated throughout the wine is increasingly seen as a more cost-effective supply chain, from the vineyard to the UK supermarket shelf. Research looking and environmentally sound alternative at the logistics and bottling of wine in to bottling at source. It can reduce CO 2 the UK, found that bulk importing can emissions, address consumer concerns maintain quality and unlock a range of about environmental impact and stimulate welcome business benefits - from reduced the market for UK recycled green glass. transportation costs to increased product And due to advancements in tanker shelf life by being bottled closer to market. technology and quality protocols, bulk While consideration must be given to the imported wine can arrive in better condition social impact of not bottling at source in than wine bottled at source. some countries, an increasing number of WRAP (Waste & Resources Action producers, retailers and brand owners Programme), with British Glass, ran a major are now turning to bulk importing, as a two-year project called GlassRite Wine, way of fulfilling their environmental and commercial objectives.

The benefits of importing wine in bulk

About GlassRite Wine The project ran from summer 2006 to spring 2008 and involved all stages of the supply chain, including producers, retailers, exporters, bottle manufacturers and fillers. More than 10 separate bulk importing initiatives were launched. The project focused strongly on New World wines, as their market share and geographical location presented the biggest opportunity to make environmental and commercial gains. A question of quality As quality is key, any changes to the transportation of wine and potential impact need to be seriously investigated. As a result, the project looked closely at the effects of bulk importation on wine quality, by studying modern storage and transportation methods. The research suggests that improvements in storage technology, handling facilities and 375 quality protocols400 mean that modern bulk importing methods can be relied upon to 350 preserve the integrity of a wine. 300
gramme CO 2 saving per 75cl bottle

Boosting the market for recycled green glass in the UK The UK imports huge quantities of green glass every year, mainly as wine bottles. As domestic green bottle manufacturing is considerably less than the available recycled green glass, much of the surplus recycled green glass is currently exported to the Continent or is used as an aggregate substitute. Bulk wine importing however, requires UK glass manufacturers to produce more green bottles to respond to demand as a result of increased bottling activities in the UK. This creates demand for recycled green glass, ensuring that a more sustainable use is made of this resource. By increasing bulk importing, GlassRite Wine has increased recycled green glass use in the UK by nearly 24,000 tonnes per year. This figure is predicted to grow substantially in future years. Reducing CO2 emissions There is huge potential to reduce CO 2 emissions through the bulk importation of wine. An estimated 20% of Australian wine is currently bulk imported into the UK, saving 0 around 11,000 tonnes of CO2 per year. However, by increasing these volumes, Bottled at Bottled at source in using lighter weight bottles, a further and source in 400g 500g 122,500 tonnes of CO2 could be saved from Australian imports alone. The table below shows the ranking of significant factors for reducing emissions from the import of wine from Australia.
400 gramme C02 saving per 75cl bottle 375

By encouraging the industry to bulk import wine and bottle it here in the UK, we are reducing the amount of green glass entering our recycling systems, increasing the domestic market for recycled glass and also increasing the use of lighter weight bottles, which use less raw material and are better for the environment. As well as cutting glass waste, this approach also improves the industrys carbon emissions profile, and saves money by reducing transport and energy costs.
Claire Shrewsbury, Glass Sector Manager, WRAP

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Bulk and Bulk and Bottled at Bulk and bottled in bottled in source in bottled in 300g 400g 300g 500g

Courtesy of Hillebrand Bulk/Trans Ocean Distribution

350 300 250 200 150 100 50 0 Bulk and bottled in 300g Bulk and bottled in 400g Bottled at source in 300g Bulk and bottled in 500g Bottled at source in 400g 0 Bottled at source in 500g 164 237

Improvements in flexitank materials have significantly reduced the incidence of oxidation and taint in bulk shipped wine. Temperature stability was also shown to be improved by bulk shipment since a larger single volume of liquid has a greater thermal inertia than a smaller one. This indicates that wine bulk shipped by sea is less at risk of temperature variations than those shipped in bottles.

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The benefits of importing wine in bulk

The logistical benefits of bulk importation There are many business benefits associated with bulk importing, including: transport costs: a standard container holds 12,000 to 13,000 bottles whereas a standard flexitank used for bulk importation holds a volume of equivalent to 32,000 bottles of wine, thereby resulting in more wine per tanker trip, and therefore reduced transport costs; shelf life: bulk shipping defers the moment of bottling and thus the start of the wines shelf life. This benefits retailers because the entirety of shelf life is spent in the country of sale; less damage: damage to bottles and labels is reduced when the product is filled closer to the destination point; and supply flexibility: bottling at the point of arrival, rather than at source means more flexibility to respond to customers orders and promotional or seasonal uplifts. Bulk importing in action GlassRite Wine supported a wide range of bulk importing initiatives. These included: Constellation Europe: Constellation Europe owns many well-known wine brands such as Stowells, Echo Falls and Kumala. It currently bulk imports the equivalent of 55 million 75cl units of wine into the UK, and with a new UK bottling facility in the pipeline, the figure is set to at least double in 2009; Corby Bottlers: Corby Bottlers supplies approximately 5.4 million 75cl units of wine bulk imported from Australia, California, Chile and South Africa each year, all of which is bottled in the UK; and Kingsland Wines & Spirits: major independent wine supplier, Kingsland Wines & Spirits now bottles bulk imported wine for The Co-operative and Tesco. The Co-operative takes around 8.3 million 75cl units from Kingsland, while Tescos own label wines feature 54 million 75cl units that have been bulk imported from various countries.

Bulk importing is integral to us as a company and our key customers. We have seen a reduction in transport costs and CO2 emissions, while our customers have benefited from increased shelf-life and fewer breakages compared to importation in bottles. It has made a lot of commercial and environmental sense for everyone involved.
Michael Forde, Supply Chain Director, Kingsland Wines & Spirits Calculating the savings of bulk importing To help the wine industry calculate the environmental and cost savings associated with bulk importing, WRAP has developed an easy-to-use website-based calculator. This calculator measures the savings for transport costs, material costs, packaging savings, and CO2 emissions reductions for wine transported from various countries. The calculator is available at: www.wrap.org.uk/winebottles

The benefits of importing wine in bulk

Whats next? Bulk importing is becoming a mainstream alternative to bottling at source, as the commercial and environmental advantages become more widely understood, and the technology and standards improve. To build on the momentum of GlassRite Wine, WRAP will be launching a second phase of work, lasting 18 months. The key focus will be to continue to encourage the bulk importation of wine into the UK, to increase the use of recycled green glass in UK wine bottle manufacture, and production of lighter weight wine bottles. A network of international champions will assist with the implementation and continuation of this important initiative.

Further information To find out more about bulk importing wine into the UK, and how it can benefit your business, please contact retail@wrap.org.uk. Further information and support tools are also available at www.wrap.org.uk/retail Here you will find:
a copy of the full GlassRite Wine report; specific research reports relating to the bulk importation of wine into the UK and lightweighting of wine bottles; the Wine Ready Reckoner; and details of how to sign up to the WRAP newsletter, containing the latest packaging innovation news.

WRAP helps individuals, businesses and local authorities to reduce waste and recycle more, making better use of resources and helping to tackle climate change. While steps have been taken to ensure its accuracy, WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate, incomplete or misleading. This material is copyrighted. It may be reproduced free of charge subject to the material being accurate and not used in a misleading context. The source of the material must be identified and the copyright status acknowledged. This material must not be used to endorse or used to suggest WRAPs endorsement of a commercial product or service. For more detail, please refer to our Terms & Conditions on our website - www.wrap.org.uk

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