Glass bottle shortages pressure wine and spirits companies

From whiskey distillers in the humble hills of Kentucky to winemakers in the sunny slopes of California, the demand for glass bottles has outpaced supply this year, a chain reaction triggered, in part, by the coronavirus pandemic.

The world’s supply chain — already lengthy and tangled in the United States — is continuing to bear the brunt of surging consumer demand, labor shortages and overseas manufacturing delays, which has led to higher transportation costs and inflation.

David Ozgo, chief economist for the Distilled Spirits Council, said glass shortages are being felt throughout the sector, whether it’s tequila or vodka or whiskey.

“Some of the large distillers, even though they have multiyear contracts for millions of bottles, they’re finding in some instances that they have to pick and choose as to which bottle sizes, they’re going to get,” Ozgo said. This could eventually lead to even tighter supplies of smaller-volume bottles down the line because the emphasis will likely go on the more popular sizes, the 750 milliliter and the 1.75 liter.

In the short term, some consumers may have to put in more effort to find their favorite booze.

“From the consumer’s perspective, if there’s a special bottle that you want for the holiday season, you might have to go back to the store a few times before you find it,” Ozgo said. “But I will say this, there are over 16,000 spirits-based products marketed in any given year. So this might be the opportunity to try a new drink.”