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HOW TRUMP TARIFFS OF 25% AFFECT CHINESE GLASS BOTTLE MAKERS
Source: ROCKWOOD & HINES GLASS GROUP LTD.
July 16, 2019
As Trump ramps up his trade war with China, the beverage and spirits industry has been wondering what the impact will be on them, specifically as many beverage companies have sourced their bottles from China.
The answer from Chinese glass factories is straight forward, "U.S. importers have not cancelled any orders so far." There has been some pressure on the Chinese glass factories to lower prices but Henri Berthe, CEO of ROCKWOOD GLASS GROUP, based in China, says that all his current orders have been maintained.
Chinese glass factories are offering solutions to marketers that want unique bottles. There is no other place to get, for example, 1.75L bottles which are difficult to shape, or special colored glass like COBALT BLUE or BLACK GLASS.
China is the only place in the world running year-round campaigns for blue and black glass. Most other bottle manufacturers run campaigns twice a year for about 2 months. If you miss the date of the campaign you must wait for the next one. At Rockwood, their lines for blue and black glass run year-round, not on a campaign schedule, so marketers can basically get their bottles whenever they want, no waiting for the colored glass campaign to start.
For importers buying inexpensive bottles or wine bottles, the 25% tariff increase will bring them close to U.S. glass factory prices. But Chinese manufactured bottles are still less expensive, as on average, Chinese production has always been 30 to 40% lower in terms of price than American. Besides, U.S. importers do not want to invest in expensive molds and months of preparation to make the switch. The status quo will be maintained, and U.S. importers will absorb most of the rise in costs for the next few months.
In general, the market is hoping that these tariffs will go away as quickly as they were implemented. If the situation persists however, Chinese glass factories will absorb some of the cost in the hope that next U.S. Presidential election will usher in a better commercial and economic relationship between China and the United States.
ARTICLE THAT APPEARED IN USA INDUSTRY NEWS LETTER IN MARCH 2019
PROS AND CONS OF CUSTOM GLASS BOTTLES MADE IN CHINA vs EUROPE or USA
How small craft distilleries can get an outstanding bottle at a fraction of the cost of a European or American glass factory
Trump tariffs on empty glass bottles should not affect sales from CHINA to the USA. Indeed the current 10% tariff or the possible new 25% tariff will affect sales, although Chinese factories will be able to absorb most of this tariff increase as long as it does not last too long.
Large Chinese glass factories like ROCKWODD GLASS GROUP, will be able to sustain their sales, thanks to their low cost compared to US competitors.
While in the Western world, the initial cost of a CUSTOM MOLD can be financially discouraging-- ranging from $40,000 to $100,000-- top Chinese factories offer mold costs starting at $3,800 with a very flexible purchase minimum quantity starting at 20,000 bottles per run. Although the tariffs are a concern, U.S. bottlers, and particularly craft distilleries, will still see an advantage in buying from China due to the smaller quantities required by Chinese factories. Even with the tariffs, Chinese glass factories can produce at 40% to 50% lower costs than American factories.
Why CHINESE GLASS FACTORIES are important to the CRAFT DISTILLERIES of America
Without China, craft distilleries would not be able to create their special bespoke bottles to compete in a crowded market dominated by the big brands. With private molds at $3,800 in Chinese glass factories, most small start-ups can afford to create their own uniquely shaped bottle. Although, big US glass factories may not like the idea of China competing in their own market, it gives them the opportunity to acquire as clients these small craft distilleries once they achieve larger sales volumes.
Rockwood Glass Group CEO Henri Berthe says, “I am very proud to help these smaller distilleries start their business with bottles that engage the consumer. In a very busy spirit market, a brand with a nice packaging will make a statement and distinguish itself from the pack.”
Too many craft distilleries invest several hundreds of thousands of dollars in fancy distilling equipment but forget that packaging is a key element for the consumer in picking a particular brand.
The upside is that a bespoke bottle can provide a distinct, even iconic look. This is where China excels in flexibility and quality, supplying bottles that the rest of the word is often incapable of producing. Indeed, China still has a future in supplying bottles to the US.
When looking for a bottle supplier in China or elsewhere, Rockwood CEO Henri Berthe advises, “Don’t work with someone who will only design the bottle. Work with a glass factory that wants to understand your consumers, wants to understand your story, what you want to convey to your consumer, and what are the dreams of your distillery.”
The Rockwood method delves deep into a distillery’s consumer profiles to understand the target audience and what is best suited. A vintage look, a modern and fancy look, simple lines reflecting a natural unique product, or super different lines. After a long marketing brief, a story board and many exchanges, Rockwood understands what clients want to do and say.
“When developing a new product, consider whether it makes sense to spend $50,000 on a fancy designer company,” says Berthe. “Several Chinese factories have in-house designers, ours happen to be French, and can design an outstanding bottle for as little as $850 in a couple of weeks.”
It’s also important to work with a factory that has a track record of making beautiful bottles. Look for a factory that has an in-house designer who understands glass blowing techniques and knows how to use them to keep costs down while optimizing design. “Ask for a factory to supply you with their portfolio. If you see that they have won Gold and Platinum Awards for Best Design in international fairs, then you should be in good hands… as long as they don’t overcharge you!”, advises Berthe. “And of course, make sure that the factory has superior quality control and aren’t going to send you bottles that don’t close properly or ones that have imperfections or defects.”
Lastly, Berthe recommends working with someone who is not just a supplier, but rather a partner, someone who will bend over backwards to satisfy your demands.
"Sino podemos hacerlo en vidrio lo hacemos de cerámica "
Licores, agua, zumos, bebidas energéticas, el sector de la perfumería son sectores altamente competitivos con miles de marcas con botellas que cada vez demuestran una mayor sofisticación en sus diseños y apariencia; los licores, el agua, los zumos, las bebidas energéticas como: Grey Goose, Bacardi, Bombay Saphire, Absolut Vodka, Capitan Morgan, Cuervo , Gold, Glenfiddish, Jack Daniels, Pernod Ricard, Coca Cola, Budweiser, Voss, por nombrar algunos ejemplos.
En Rockwood sabemos de la importancia de tener una marca excepcional a través de una botella de vidrio con un diseño atractivo y una etiqueta/logo con un alto nivel de diseño y de estética. Generar una primera gran impresión cuando el consumidor va de compras es esencial para construir una lealtad a la marca de larga duración y esto se consigue con un excelente packaging que atraiga a primera vista. En la actualidad la competencia se basa principalmente en el diseño de la botella, en destacar por ser único: en el logo, en la etiqueta y en los valores diferenciales de la marca,
En Rockwood estamos orgullosos de contar con un equipo multidisciplinar capaz de diseñar, desarrollar y producir desde el concepto creativo a la producción en masa del producto final ,proponiendo soluciones en todo el proceso productivo. Nuestra estructura nos permite poder responder a tus expectativas y convertir tus ideas en productos de éxito. En nuestra oficina principal establecida en Shanghai, China, uniendo el expertise y gestión europea con el know-how de la mano de obra local, convirtiéndose en un equipo altamente cualificado tanto desde el punto de vista técnico como de marketing, pudiendo ofrecer a nuestros clientes una solución global, asequible en costes y fiable en calidad.
En esta web puedes encontrar un amplia elección de diseños de botellas de vidrio demostrando nuestra capacidad productiva siendo fuente de inspiración para todos los clientes que estén pensando en desarrollar un nuevo producto y generar una nueva botella de vidrio. Este objetivo de generar una nueva botella de vidrio es muy asequible con Rockwood ya que generamos moldes cuyo coste es diez veces menor que los precios en Europa y Estados Unidos.
Te invitamos a recorrer detenidamente nuestra web para tener un mejor conocimiento de nuestros productos y servicios: puedes contactarnos con los detalles de tu proyecto de tu botellas de vidrio y estudiaremos la mejor solución para ti
Henri Berthe, CEO.