TricorBraun WinePak | A Snapshot of the Industry Today

1-800-DRINKWINE | tricorbraunwinepak.com |

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SNAPSHOT OF THE

INDUSTRY T O D AY

TRUST A PACKAGING PARTNER WITH TECHNICAL KNOW-HOW AND GLOBAL REACH

SHORT-TERM HEADWINDS AND LONG-TERM GROWTH Today the wine market is global and the long-term forecast remains good.

Consumers around the world consumed 25,268 million liters of wine in 2018. In the U.S. alone, consumption is expected to rise from 3,388.12 million liters in 2018 to 3,831.9 million liters in 2021. This translates into a market projected to be worth $45,466.1 billion in 2021, with a compound annual growth rate of 2.7 percent from 2016–2021. The strength of the industry, along with growing global competition, underscore the need for a packaging partner that knows your business and can help your brand stand out in a crowded market.

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YOU HANDLE THE WINE. WE'LL HANDLE THE PACKAGING.

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Indeed, the U.S. wine industry benefits from a mature market that ranks fourth in per capita expenditure on wine. This trend is being driven primarily by people 55+ “with higher disposable income to spend on quality wine,” according to a 2018 report by GlobalData.

All of this is welcome news as wineries operate in a period of increasing volatility from climate change, political upheaval, trade wars, and more.

According to GlobalData, the disruptive forces impacting the U.S. wine industry range from uncertainty about Brexit to protectionism to immigration.

Take tariffs, for example. The Trump administration’s decision in May 2019 to impose 25-percent tariffs on Chinese glass created an instant surcharge and left many companies facing unanticipated costs. With China slapping retaliatory tariffs on U.S. wine imports, the pain hits both ways. All this as domestic glass manufacturers reach capacity and many wineries worry about getting quality packaging delivered on

time. Add in periodic chatter about tariffs on Mexican goods and French wines and you just deepen the shortterm uncertainty.

Meanwhile, the International Maritime Organization is set to implement a new rule on January 1, 2020 that will require ocean carriers to either use low-sulfur fuel or install costly scrubbers. Putting aside not-insignificant questions about fuel supply and demand, early estimates are that the new regulation will increase the cost of shipping a 40-foot container across the Pacific by $300 or more.

With so many factors impacting your business, it’s important to choose a packaging partner with deep industry know-how and a global reach. At TricorBraun WinePak, we always go the extra mile to understand your company and stay up to speed on all the outside variables so you can focus on what you do best.

We start with your packaging— but we don’t stop there.

With so many factors impacting your business, it’s important to choose a packaging partner with deep industry know-how and a global reach.

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YOU HANDLE THE WINE. WE'LL HANDLE THE PACKAGING.

WINE CONSUMPTION

BY THE NUMBERS

3,832

MILLION LITERS CONSUMED IN THE U.S. BY 2021

2.7% CAGR 2016-2021

55+

OLDER CONSUMERS WITH HIGHER DISPOSABLE INCOME DRIVING TREND

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SOURCING QUALITY GLASS AT HOME AND ABROAD As North America’s largest wine bottle distributor, we simplify the packaging procurement process so you can focus on winemaking. And we understand that a bottle isn’t just a bottle. Quality matters, and so does having a reliable supply of bottles delivered on time.

We source from a wide range of domestic and international wine glass bottle manufacturers, and we’re adept at finding and delivering the highest quality packaging. If you’re looking for custom packaging, our skilled team of graphic designers, structural designers, and packaging engineers can bring your brand to life and give you a competitive edge.

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YOU HANDLE THE WINE. WE'LL HANDLE THE PACKAGING.

We ship more than 70,000 orders every year so we’re experts at sourcing bottles for you even in tough times.

Plus, while bottle supplies are tight and trade wars are creating angst, we have a global operation and multiple options to make sure your bottles are there when you need them.

When you partner with WinePak, you’re partnering with our entire integrated supply chain. We start with sophisticated forecasting to help our vendors plan ahead and ensure your bottles are produced and perfected. We even hold a supply of ready-to-ship bottles with our Chinese vendor, which helps cut down on lead times. Indeed, we ship more than 70,000 orders every year so we’re experts at sourcing bottles for you even in tough times.

Our integrated supply chain includes 41 warehouses worldwide, of which seven are dedicated to the wine industry. This totals approximately 550,000 square feet of wine inventory space to ensure justin-time delivery at bottling time. We also source from multiple box suppliers. This means we can typically get your boxes made, and bottles inserted and ready to ship, within 30 days.

In addition, we use a strong transportation management system that tracks your packaging from the factory floor to our warehouse to your winery.

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ENSURING QUALITY ONE BOTTLE AT A TIME When you partner with WinePak, you get sourcing exclusively from vendors certified in quality assurance and environmental management. With ISO 9000 certification, our vendors don’t just say they have quality assurance standards: they have systems in place to ensure that their bottles consistently meet your requirements. Similarly, having ISO 14000 certification means that our wine bottle vendors are actively managing their operations in environmentally responsible ways.

And it may sound like overkill, but we don’t take their word for it. We inspect wine bottles every hour of every day to make sure they’re free from both critical and minor defects. We also run sophisticated tests to ensure that your bottles are free from heavy metals and other contaminants.

In addition, WinePak is the only packaging distributor to have a 5-person inspection team onsite at our Chinese vendor. That means that any deviations from acceptable quality limits are identified immediately, not after your shipment shows up on U.S. shores.

We inspect wine bottles every hour of every day to make sure they’re free from both critical and minor defects.

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YOU HANDLE THE WINE. WE'LL HANDLE THE PACKAGING.

FORGING PARTNERSHIPS WITH CUSTOMERS We don’t just source quality bottles, closures, and capsules; we also provide repacking with a state-of-the-art system that automates an otherwise timeconsuming and labor-intensive task.

This gives you the speed and efficiency to keep your shipments complete and on schedule. We additionally provide packaging logistics to make sure your bottling components go where you need them, when you need them.

And we know when you need them because we know your business.

For example, our packaging consultants know which bottles and how many our customers typically order. We’ve

spotted transposed numbers and saved companies from overordering. We’ve followed up when customers have asked for something they already have in stock, or when an order looks out of order. And we’ve called proactively when we know a winery is bottling to see whether they need another truckload of bottles delivered from our warehouse.

Our packaging consultants have your back because we’ve built long-term relationships. When you work with WinePak, you don’t get one person selling you a wine bottle. You get a team that understands both packaging and the nuances of the wine industry.

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What about Canada?

It’s a good time to be a Canadian wine producer. While the industry is not immune to supply constraints and freight cost uncertainties, wineries in British Columbia (BC) and elsewhere across Canada are sheltered from many of the trade war woes that are creating angst in the United States.

The relative stability of the Canadian wine market is reflected in the numbers. According to a November 2018 GlobalData report, the wine market is projected to grow from $9.9 billion (C$12.8 billion) in 2015 to $13.9 billion (C$15.7 billion) by 2022. This equates to a compound annual growth rate of 4.1 percent during the same period. As in the U.S., consumers 55+ are the leading consumers of wine by volume.

CANADIAN WINE MARKET PROJECTED TO GROW TO

$13.9 BILLION BY 2022

In British Columbia in particular, the tariffs that have rocked U.S. wineries have had limited impact.

When you source from TricorBraun WinePak, for example, your Chinese glass bottles are shipped directly to Vancouver. No fuss. No tariffs. This also ensures a reliable Asian supply at a time when U.S. glass manufacturers are struggling to keep up with demand and new capacity is not expected to ease near-term supply constraints.

TROUBLESHOOTING AND TECHNICAL EXPERTISE When you work with us, your WinePak team includes WinePak’s Director of Quality and Technical Services, who spends much of his time visiting customers’ businesses to troubleshoot problems and put his technical expertise to use. On any given day, you can find him onsite sourcing replacement glass if there’s a specification problem, or advising on production issues.

For example, he noticed one winery having trouble with both their filler and their corker—and the production line

wasn’t operating at peak efficiency.

He not only diagnosed a maintenance problem onsite, but he also followed up with a written report so they’d have the information to refer to moving forward. He’s also helped companies identify breakage problems that were tied to production or sanitation procedures, not quality. Customers also routinely reach out for advice before making new equipment purchases or changes to their production processes. It’s valueadded, and it’s all part of who we are.

WINEPAK: YOUR PACKAGING PARTNERS FOR THE LONG HAUL The long-term forecast is good, but there’s no getting around it: there are a lot of headwinds right now that could keep you up at night worrying about your business.

But let us do the worrying for you.

You handle the wine, we’ll handle the packaging isn’t just a tagline. It’s who we are.

Our WinePak team is tracking the trends and seeking solutions so your business can focus on what it does best. From box and bottle designs to labels that tell your brand story, we’re here to help.

Let's talk packaging!

Email us at marketing@tricorbraunwinepak.com or call 1-800-DRINKWINE anytime

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2280 Cordelia Rd. Fairfield, CA 94534 | 1-800-DRINKWINE | tricorbraunwinepak.com |