Corkscrew Chronicles: Supply chain bottlenecks limit wine availability

If you have shopped for consumer goods of any kind, you know there have been breakdowns in the supply chain. Just look through the local supermarkets and you will see the spaces on the shelves waiting to be restocked. Leisure items have have been selling strongly since the pandemic hit. Home projects have not only challenged availabilities of construction supplies, but prices also have skyrocketed. And the workers that stayed away from their jobs because of COVID-19 have also slowed material manufacturing needed for wine aging, bottling and shipment. Barrels from Tonnellerie Sirugue in France, anticipated to arrive this past June, might possibly be coming in November. Wineries in Texas are not sure they will have adequate bottles for the current vintage. Glass, corks, capsules and labels will not be ready for new releases. A Cincinnati wholesaler could not place a recent order for Bordeaux wines because the winery couldn't source cardboard shipping boxes. Container demand for shipping wine is up dramatically everywhere. This appears to be a worldwide, industrywide issue. American pandemic retail wine sales were dramatically increased because consumers shifted to cooking and drinking at home, and many restaurants were simply closed for patron and staff safety. However, the increased retail volume did not make up for on-premise losses. Now, everything is opening and demand to receive products in is very high, creating issues with suppliers filling the wine pipeline. It is not just at the wholesale level. It is every step from production through retail. If wineries can't finish, package and ship their wines, containers are sitting offshore waiting to be unloaded and truckers are scarce and behind in picking up orders, it creates a very uncertain situation for the industry segments that supply the public. As a wholesaler, what do you do? You ordered two containers of Bordeaux for arrival six months apart, they arrive simultaneously, dropping a year's inventory in your warehouse. In Ohio, everything is cash on delivery, which would create serious cash flow issues for a small wholesaler. With containers backed up in port, the purchaser pays demurrage charges, billing for extra time the container spends until it is picked up — costs that increase the product's retail price. This is part and parcel of what has been influenced by the pandemic. With demand down and shipping lags, many wholesalers did not order until the virus seemed to be abating. By then, it was too late, because everyone needed product at once. The balance between cash flow and inventory is always an issue. The company must protect its profitability to survive. Right now, that is becoming increasingly difficult. Wine integrity is also challenged by increased shipping times. Many brokers and wholesalers pay extra for reefers, containers with temperature control to prevent wine from weather extremes. Most reefers use a 50-gallon fuel tank that would last for about two days if running continuously. There would be additional fuel and fueling cost for extended shipment times, which is also added to the final retail price. In my 43 years as a consumer, I have seen a number of supply issues. Before you panic, remember that different markets have different supply levels, and you can travel. America has many North American sources for wine. Warehouses and stores appear to have a fair amount of product in stock right now. Supply issues will take time to work out, but there should be ample wine to drink, though it might be of a different origin or brand than you normally enjoy. Time to find new favorites, perhaps, and a good time to start that wine cellar for the future. Gary Twining is a certified wine educator who worked 34 years in the wholesale fine wine industry. Email him at winingwithtwining@hotmail.com.