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Global Wine Shipping and Logistics in 2023 with Horst Mueller, Global Head VinLog
Horst Mueller, global head of VinLog, the Beer, Wine & Spirits arm of Kuehne+Nagel, about the current state of wine logistics and what to expect in 2023.
In charge of the Beer, Wine & Spirits division. He has been with Kuehne+Nagel for the last 15 years. Vlog offers all transportation modes throughout the supply chain with a strong focus on international transportation and dedicated warehousing solutions. The company operates on all modes of transportation, including shipping containers, rail, truck, and also air freight, with services encompassing full container loads (FCL), less than container loads (LCL), temperature-controlled transportation, bulk services (Flexitank/ISO tank) and protective services.
Horst has spent 33 years working in the industry. "We know and understand the drinks industry and work to ensure your products receive the attention they deserve. We offer customized solutions for an end-to-end service that includes transportation, storage, and last-mile distribution."
Here are some pointers for the conversation:
1) Schedule reliability is better now and an important metric to see.
2) Container availability is also better now.
3) South America is a good option for buying wine for the US market and offers good opportunities right now.
4) Routes getting stable now but some delays and some changes. Some direct routes are no more direct routes. Overall wine business during covid, there were restrictions. South Africa is one example. This caused disruptions.
5) The market has stabilized now overall.
6) In South Africa, container availability is still an issue so pre-planning is needed. Port of Adelaide only has 6 services coming in, so again more planning is needed there. Melbourne and Sydney are less of an issue.
7) European bulk wine to the west coast is not as big as the southern hemisphere of the USA.
8) A good customer to us is one who can plan better, can do yearly planning, is very very good at communications, and manages expectations. The more lead time for us, the better it is for everyone.
9) Australia to Europe was affected, it was the furthest leg and one of the longest chains in the wine supply chain. Port congestions happened but all is normalized now.
10) Labor disputes on Westcoast also caused issues but getting better now.
11) Schedule reliability is a very good parameter to look at. Went down to 35%. We are seeing that better now.
The cost of containers and shipping is much better now. But we really can't take a macro picture here, it's still a dynamic environment. It's a combination of container availability and schedule reliability. We were a somewhat invisible industry, but the last 12 months have put more seriousness. Supply chain and transportation costs are very relevant topics now with customers in the c-suite now. It's part of the buying decision as well from big chain buyers.
12) China factor: China is still very strong, we are still shipping a lot there. But yes Australia to china is no longer a market. South Africa and chile are the benefactors of this. The Chinese market is still consuming. We are seeing on the beer side, china is still very strong. Patterns did change little, where consumption of more off trade in china than on trade.
Image: Kuehne + Nagel; Source: VinLog
13) German market: Shopping has become a necessity, promotion driven market is hot.
14) US market: Very attractive wine prices may not always match the transportation so now buyers are looking at end-to-end solutions. US buyers are looking for end-to-end service and logistics is part of the meetings at the c-suite now.
15) The wine production industry in the USA is very much around Oakland port. Where Oakland is really the option and there was slow down there. As it's very different to truck cargo from south cal to north cal.
16) In Europe, chains, have changed and patterns to buy more European wines are now there. Change in the way wine buyers are purchasing wine due to shipping issues we had in 2021-2022. South Africa was the fastest and quickest route, but because of disruption, there was a drop.
17) Movement of bulk wine from Australia is picking up to Europe and USA.
18) 20-foot containers are getting less and less produced. Carriers are not investing in 20 ft containers anymore. The industry is moving into 40-foot markets.
Shipping and logistics have become a very important part of the business from cost to timing, you must attend Horst Mueller’s session at the IBWSS show on July 25-26. The session will give you an idea of whats doing on in the global shipping industry, how to plan better and how to save money here.
Who’s Speaking at IBWSS 2023?
1. Sarah (Morra) Qualters, Director of Marketing, Corporate Brands & Emerging Channels, at The Wine Group.
2. Ryan Pandl - Senior Buyer, Adult Beverages and Beverages at Target.
3. Kryss Speegle MW - Alc Bev production, sales and education, O'Neill Vintners & Distillers.
4. Jessica Kogan, Chief Growth & Experience Officer at Vintage Wine Estates.
5. Shreyas Balakrishnan, President at Cutwater Spirits.
6. Randy Herron, Head Winemaker at C. Mondavi & Family.
7. Jon Berg, Thought Leadership VP – Beverage Alcohol Vertical for NielsenIQ.
8. Cami Lehmann, Purchasing, Wine Programs, and Marketing at Maggiano’s Little Italy.
9. Jim Bube MS, Wine Director at Hogsalt, Chicago.
10. Maurice DiMarino, Wine and Beverage Manager at Cohn Restaurant Group.
11. Cheryl Durzy, LibDib Founder & CEO.
12. Rachel Lowe, Director of Beverage for Levy Restaurants, Chicago, IL.
13. Nathan Mansperger, VP of eCommerce, Southern Glazer's Wine & Spirits.
14. Bryan Melo, Senior Director of National Accounts & eCommerce at Freixenet Mionetto USA.
15. Kayla Winter, Director, Product Services and Winemaking at BevZero.
16. Anita Oberholster, Extension Specialist in Enology at the University of California, Davis.
17. Jason Steffens, Training Manager at Deutsch Family Wine & Spirits.
18. Devin Walden, Master Distiller of Tropical Distillers.
More speakers are being added and you will be able to see the full list here.
What will you learn at IBWSS Conference?
The conference will take a deep dive into private labels, industry progress, bulk, and supply chain. Speakers who are experts in the bulk and private label business will provide you with actionable insights to help you save money with the expensive lessons that they have learned, they will provide you with knowledge of the current and future landscape of the industry so you can plan your business trajectory, they will provide you with appropriate knowledge to spot upcoming opportunities. IBWSS conferences are considered to be the best in the business and all the speakers at IBWSS have been carefully selected to give you a complete seminar that is valuable for you.
Topics will include data and trends, the non-alcohol segment and how winemakers can partake in this, supply and ocean freight, sales, technical and blending panel, what bulk wine and bulk spirits buyers are looking to buy, and how they will plan their buying in the recessionary period, national chain buyers like Target on sustainability in suppliers, managing a fast-growing brand, smoke lab analysis and contracts, alternative packaging, eCommerce and digital panel and more.
There will also be 4 main panels, one with on-trade chain buyers, one with off-trade national chain buyers, a technical panel of winemakers, and lab experts, and one with bulk wine and spirits buyers. The panels will be open for audience Q and A.
Who is this for?
Anyone in the bulk wine, bulk spirits, private label, contract bottling, and supply chain business. From winemakers, and distillers to retail buyers, salespeople, and CEOs, IBWSS is where decision-makers gather in planning and improving their private label, contract, and bulk business.
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Networking Party
Don’t miss the cocktail party at the Double Tree Hotel next to the expo venue at the end of day 1. Grab a drink or two and network with speakers, exhibitors, and peers. You get free access to this if you book your IBWSS conference tickets before December 16 (in the launch week).
Can’t attend in person? Secure the recorded sessions with an all-track pass
We'd love to see you in person and hang out with us, learn, network, and also have a drink at the after-party! However, if you'd prefer to attend virtually, the PowerPoint and videos of the speakers’ talks will be available. You will be able to watch all the sessions in your own time and have access to Powerpoint presentations so you can learn and apply the information in your business.
Pricing for IBWSS In-Person Conference Sessions
December 17, 2022, to January 31, 2023 - $299 (Super Early Bird).
February 1, 2023, to May 10, 2023 - $399 (Early Bird).
May 11, 2023, onwards - $499 (Regular).
*All conference tickets are fully refundable 60 days before the event. All conference tickets include lunch, coffee & pastry, and expo floor entry. The launch pricing conference ticket also includes access to the cocktail party.
Pricing for IBWSS Expo Floor
December 17, 2022, to January 31, 2023 - $39 (Super Early Bird).
February 1, 2023, to May 10, 2023 - $49 (Early Bird).
May 11, 2023, onwards - $59 (Regular).
Time to get your visitor passes and save with online registration. Join the biggest gathering of bulk and private label professionals in America. Select your tickets here.