Like many global sectors, wine manufacturing has faced profound challenges in recent years, with supply chain disruptions and economic fluctuations. Though production has since resumed and markets have stabilised, the twin pressures of sustainability and cost-efficiency remain challenging. In response, innovation has surged across the wine supply chain, driving winemakers, bottlers and distributors alike to reimagine how and where their processes take place. Dr Chris Borman, a Winemaker at Encirc, explains.
One of the most transformative shifts in the industry has been the move towards bottling wine in the local regions where it will be sold and the capabilities that bottlers have in finishing product in-market. It’s something that we’ve pioneered at Encirc by championing bulk shipping in the UK – a process that allows wines to be shipped more efficiently and sustainably then bottled locally. This cuts emissions and reduces costs, which is ultimately a win for both producers and consumers.
However, local bottling is just the beginning. In-market processing offers the wine industry a wealth of opportunities for enhancing quality and adopting new ways of working to meet consumer trends – something that wine has traditionally been slower to do due to its cyclical nature. Additionally, evolving legislation is paving the way for further localisation, with the potential to reshape the industry’s footprint and impact.
Rethinking wine supply chains
In the past, the traditional model of bottling wine at the source of production and shipping it to global markets was seen as the gold standard. However, with increasing legislative pressures for more sustainable practices, and increased demand from consumers for sustainable products, this approach is changing, and the sector needs to get on board if it wants to continue thriving.
Enter bulk wine shipping. By bottling wine in the UK, it is possible to eliminate unnecessary resources, and the costs associated with transporting pre-bottled wine. For example, bulk shipping wine from New Zealand to the UK can cut the carbon footprint of each finished bottle by almost 50% compared to shipping the wine as a finished product.
Bottling wine closer to its final destination also means reducing the risk of wine being damaged by heat while it’s ‘on the road’, so to speak, with bulk shipping helping maintain a steady temperature for wine across its journey compared to shipping bottled liquid.
Changes in wine temperature during transit can cause potential issues with quality or breakages as high temperatures cause the wine to expand and increase pressure, potentially smashing containers or changing flavour profiles. Shipping in bulk not only helps deal with increased pressures and stops breakages, but it can also help maintain wine temperatures, ensuring that the product is arriving at retailers and consumers exactly as it should. From a winemaker’s perspective, it’s essential that we preserve the flavours and aroma that the vineyards have worked so hard to achieve and it’s nothing less than consumers deserve.
The evolution of the manufacturer
Traditionally, a wine filler and distributor was just that. It would take finished products, fill them into bottles, and distribute them across the UK. However, changes to the UK Wine Regulations will allow bottlers and fillers to do much more in-market, adding new services to their offering and making them more competitive players on a global market scale.
In the UK, we’re seeing the potential for the relaxation of legislation post-Brexit in early 2025, opening up the opportunity for the carbonation of wine in the UK market, which, in turn, would encourage the bulk-shipping of uncarbonated wine. Once the wine arrives and is carbonated, it can then be labelled as its country of origin after carbonation in the UK – all while keeping the same quality as if it were bottled at source and reducing carbon emissions. For wineries and manufacturers, this bulk shipped wine also reduces shipping fees and import duties, strengthening the sector’s offering for the international market.
By carbonating wine domestically, manufacturers and producers have something that they’ve never had before – the flexibility to experiment and try different levels of carbonation, allowing them to create new flavour profiles and types of sparkling wines that can address ever-changing consumer preferences and demands.
The potential for lower carbonation levels also allows for lighter weight glass bottles that can be made thinner to withstand lower pressures. This would reduce the amount of glass needed for each bottle, and decrease the amount of energy needed to produce each bottle – minimising CO2 emissions and creating a more sustainable product for consumers.
It’s here where we see the change in the role of bottle manufacturers and fillers become apparent, moving from a functional role of packaging creator and distributor to that of a fully-fledged winery and innovator of new solutions for the market. This flexibility will only be further enhanced in the UK with the opportunity to blend and finish wine in-market.
Blending in the UK continues to promote the shipping of bulk wine, but the process also gives our local wine industry a real advantage compared to other markets, solidifying the change from manufacturer to winery. In doing this, we can create unique wines tailored to specific tastes and respond quickly when harvests or consumer preferences shift.
It’s not just taste and preference for dry whites, sharp sparkling wines or sweeter, richer reds where we’re seeing consumer trends shift either. We’re already seeing a move towards lower alcohol products from consumers, and with the changes proposed in the UK Wine Regulations there’s scope for manufacturers to de-alcoholise wine in-market, enabling them to tailor products to regional trends and health-conscious consumers.
It’s clear then that the scope for in-market activity is huge, but an important thread that needs to carry across all these possible changes is meeting consumer demands. Inherently, doing more in-market should enable the sector to meet consumer demands faster without sacrificing taste, with the ability to finish wine locally giving winemakers a level of quality control that’s currently difficult to achieve compared to liquids bottled at source. Ultimately, this translates into a sector that’s more accessible, in terms of price, choice and availability.
Enabling localised processes
For manufacturers, the legislative changes from earlier this year that lifted the restrictive rules around importer labelling have greatly eased the logistical challenges posed by the requirement for a separate UK label post-Brexit.
Moving to labelling, the Food Business Operator allows for one label for both UK and EU markets, with EU producers able to put their details on the label alongside a UK address – something we already saw on imported wines like those from Australia. This change positions the UK as a more competitive and appealing destination for producers to import into and ensures that consumers have access to wines from across the world.
This small but significant adjustment lifts a considerable logistical burden on manufacturers and is the key to unlocking the full winery capabilities of today’s modern bottle manufacturers and fillers, with labelling being the last hurdle in truly localising processes.
It’s more than just a regulatory shift; it’s a game-changer. It opens the door for wine companies to explore processing methods that may have previously been constrained by strict labelling requirements and sets the groundwork for investment in more advanced processing techniques for the sector, all while preserving the integrity of the wine’s origin label – something the industry can’t afford to lose.
Investing in the future
Of course, there are still challenges to fully realising the potential of in-market processing. Logistical planning, resource allocation and labour shortages will all need to be addressed to support a more complex in-market bottling model, but the opportunities for investment as an industry are clear and already new technologies are being created to help fill these gaps and promote value-added careers for those in the sector.
For example, the use of AI in wine filling is transforming the industry by making the filling process faster and more efficient, minimising the amount of wine lost, and energy used. Meanwhile, new technologies in areas like quality control, supply chain analytics and digital wine storage monitoring are making it easier than ever for bottle manufacturers and fillers to take on this expanded role as well as creating opportunities for people in the sector, or those looking for a rewarding career.
As consumers continue to place value on sustainability and eco-consciousness, the wine industry has a powerful incentive to lead in this area. Every step we take to make the supply chain more efficient, more environmentally friendly and more adaptable to local preferences brings us closer to an industry that can thrive in the face of modern challenges.
However, it’s only through close collaboration with industry stakeholders, policymakers and supply chain partners that we’ll be able to make further in-market processing a reality. This collaboration is central to understanding where and when investment is needed for this continued evolution with longer-term partnerships and clearly laid-out strategies from companies and government providing the clarity needed for these partnerships to flourish.
The more each of the parties work together, the greater and more resilient, cost-effective, and adaptable the sector will become – all without losing sight of one key thing, the taste of the wine itself.
A brighter future for the wine industry
The trend towards in-market processing is poised to create a wine industry that’s more resilient, more sustainable and more attuned to the needs of modern consumers. Bottling in-market is just the start of a wider industry evolution that is already seeing bottlers taking on more of the traditional roles associated with wineries.
With each new piece of legislation and innovation in technology, we’re moving towards a future where wine can be produced and enjoyed in a way that meets the demands of both consumers and the planet.
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