Glass bottle shortages strain wine and spirits firms

Glass bottles move down a conveyor belt on the Jack Daniel’s Single Barrel Select Tennessee whiskey bottling line at Jack Daniel’s Distillery in Lynchburg, Tennessee, United States, on Thursday, Jan. 30, 2014.

Luke Sharrett | Bloomberg | Getty Images

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

The global supply chain – already long and tangled in the United States – continues to bear the brunt of rising consumer demand, labor shortages and overseas production delays, leading to higher transportation costs and inflation.

David Ozgo, chief economist for the Distilled Spirits Council, said glass shortages are being felt across the industry, be it tequila, vodka or whiskey.

“While some of the big distilleries have multi-year contracts for millions of bottles, in some cases they find that they have to choose the bottle sizes they will get,” said Ozgo. This could eventually lead to an even narrower range of bottles with smaller volumes, as the focus will likely be on the more common sizes of 750 milliliters and 1.75 liters.

In the short term, some consumers may have to put more effort into finding their favorite alcohol.

“From a consumer perspective, if you want a special bottle for the holiday season, you may have to go back to the store a few times before you find her,” said Ozgo. “But I put it this way, over 16,000 spirits products are launched every year, so this could be an opportunity to try a new drink.”

Change to new suppliers

Castle & Key Distillery in Frankfort, Kentucky, is one of many distillers who have switched glass suppliers given supply chain problems.

“The factory we worked with in the UK had a coronavirus outbreak and had to shut down completely, leaving our production at least a few months behind schedule,” said Jessica Peterson, operations manager at the distillery.

Peterson said that when it reopened in the UK, the distillery was forced to address supply chain issues and had to temporarily switch to air freight due to delays in sea freight.

“The preferred method would normally be ocean freight,” Peterson said, adding that ocean freight costs tripled during the pandemic. Since then, the distillery has moved to a supplier in Guadalajara, Mexico who delivers orders by rail.

“Since the transition, we’ve had a steady supply of glass,” said Peterson.

“I’ve heard from other people that the demand for shipping containers has grown so much that they are paying almost $ 6,000 or more than $ 20,000 for the container alone. And that’s just crazy, “she said.

Shipping containers are stacked in PortMiami after being unloaded from a boat on November 4, 2021 in Miami, Florida.

Joe Raedle | Getty Images

To avoid future supply chain bottlenecks, the distillery is no longer ordering six months in advance but at least two years ahead of schedule, Peterson said. Still, the disruptions have increased the distillery’s production costs, she said.

“Currently we have not passed a price increase on to consumers. But that could definitely come,” she said.

Made in the USA

New York-based supplier Waterloo Containers has increased its prices on imported glass for its customers. Most of Waterloo’s inventory for glass wine and liquor bottles comes from the United States, with about a tenth from abroad. Domestically produced glass has seen lower price increases, mainly due to higher freight and energy costs, according to Bill Lutz, its president and owner.

Problems with Waterloo’s imports started about six months ago, Lutz said. However, with such a small portion of its glass being imported, Waterloo doubled its orders this year as supply chain issues arose and wineries and distilleries looked for new suppliers.

Waterloo is also a warehouse supplier rather than just-in-time, so it always has extra inventory on hand.

“We actually delivered more bottles from our store to the west coast this year than in the last 20 years,” said Lutz.

Most of the glass bottles used in the United States come from abroad. Years ago, glass manufacturers relocated their production to countries where glass could be made more cheaply – mainly in Asia.

Mauricio Perez, North American regional director of Panamanian glass supplier BPS Glass, estimated that 60 to 70% of the glass bottles used in the US were from China, at least before the Trump administration’s trade war. Tariffs on glass imports from China convinced some manufacturers to instead import glass from factories in Europe or Latin America to meet demand.

Then the pandemic struck, with waves of new cases followed by further lockdowns creating supply chain problems around the world.

For winemakers outside of the United States, the problem is even worse. According to Perez, wine and liquor makers in Latin America are facing tougher bottlenecks as some companies switched to glass made in places like Chile rather than China during the trade war.

It is a situation that is not easy to resolve. Building glass furnaces or setting up new production lines can take a year or two.

“The glass supply cannot return to the USA because the manufacturers’ glass capacities are simply no longer sufficient,” said Lutz.

Downward Stress on Cash-Market Charges Continues; Delta Variant Hits China Companies Sector

Good day. The Federal Reserve’s primary tool for controlling economic dynamism is ticking down again, increasing the possibility that officials may need to take technical measures to get it going again. Meanwhile, China’s service sector suffered an unexpectedly severe blow in August when a wave of coronavirus infections across the country triggered new lockdowns and sent an official measure of non-manufacturing activity to a contraction area.

Now for today’s news and analysis.

Top news

Covid-19 Delta variant beats up China’s service sector

China’s official non-manufacturing purchasing managers’ index, which tracks activity in construction and services, slumped to 47.5 in August from 53.3 in the previous month, according to data released Tuesday by the National Bureau of Statistics. The value of 47.5 – which fell far short of what economists had forecast for a value comfortably above 50 – marks the measure’s first break into contracting territory since February 2020, at the height of the initial coronavirus explosion that led to the lockdown Hubei Province.

Derby’s Take: Funds rate is softening, adding to the specter of technical rate boosts

By Michael S. Derby

The effective key interest rate has been slipping since around mid-August after it was raised by the Fed at the beginning of summer following a technical rate hike. The key interest rate, which had been around 0.10% for most of the summer, fell to 0.9% on August 18 and again to 0.8% on Monday. If the key rate stays soft or softens and this shift proves to be sustained, the Fed may have to react by revoking the settings of its interest rate control toolkit. Continue reading.

Important developments around the world

Oil industry investigates damage after Hurricane Ida slam in Louisiana

Energy companies assessed the condition of refineries, pipelines, petrochemicals and offshore oil rigs along the central Gulf of Mexico on Monday, the day after Ida hit Louisiana as a powerful Category 4 hurricane.

Unfinished tractors and pickup trucks pile up as components become scarce

Manufacturers stack unfinished goods on factory floors and park incomplete vehicles in airport parking lots while waiting for missing parts, made scarce by supply chain problems that disrupt multiple industries.

New life and work choices enliven exurbs and bring new strains with them

Extra-urban areas have grown nearly twice as fast as domestic over the past decade, and there are signs that growth is accelerating as Americans prepare for a landscape where increased work from home means the need to commute decreased.

EU recommends stopping non-essential travel from the USA

The European Union recommended stopping non-essential travel from the US due to the increase in Covid-19 cases, diplomats said on Monday, ending a summer vacation break for American tourists.

Summary of the Financial Regulation

SEC chair warns against payment for order flow

Robinhood Markets Inc.’s shares plunged Monday after the chief of the Securities and Exchange Commission signaled he was ready to ban payments on the order flow, which makes up most of the online brokerage’s revenue.

Members Exchange urges regulators to fix stock prices for half a penny

Investors could see shares of Apple Inc. and Bank of America Corp. for $ 152.005 or $ 42.115 per share if regulators sign a proposal presented this week. Members Exchange, a startup exchange backed by major Wall Street firms, said in a proposal that the Securities and Exchange Commission should allow some heavily traded stocks to be valued in half-cent increments.

So far, direct listings have paid off for investors

Eyewear maker Warby Parker Inc. is the latest to file with the SEC for direct listing, demonstrating the persistence of the alternative path to public markets for companies that don’t need to raise money.

Foresight

Wednesday (all times ET)

9:30 p.m .: Bank of Japan’s Wakatabe speaks at a meeting with local leaders in Hiroshima

Thursday

8:30 a.m .: US Department of Commerce releases international trade data for July

research

Goldman Sachs says evictions threaten

Around 750,000 American households are now threatened with eviction from rental apartments in the wake of the latest political changes that protect the financially needy, Goldman Sachs said in a message to customers. The investment bank estimates that between 2.5 million and 3.5 million households are behind on rents and owe landlords up to $ 17 billion, while state aid to tenants is slow. “The strength of the housing and rental market suggests that landlords will try to evict tenants who are behind on rent unless they receive government support,” the note said. According to analysts at Goldman Sachs, this should not have a very negative impact on the economy. They say in the note that “Our literature research shows that an eviction episode of this magnitude is a small burden on consumption and employment growth.”

– Michael S. Derby

Basis points

Asking rents for homes rose nearly 13% year-to-date through July, the highest annual increase in five years, according to real estate data company Yardi Matrix.

US pending home sales declined for the second straight month in July, according to the National Association of Realtors, whose index of pending home sales fell 1.8% from June to 110.7. Pending home sales declined 8.5% year over year in July. (DJN)

Manufacturing output in Texas slowed in August, with the Dallas Fed’s Manufacturing Outlook Survey manufacturing index falling to 20.8 from July 31. The general business activity index, which rates general terms and conditions in the industry, fell from 27.3 to 9. (Dow Jones Newswires)

Aluminum forwards on the London Metal Exchange are up a third this year and prices are around 80% above their low in May 2020 when the pandemic restricted sales to the aerospace and transportation industries.

German inflation in August was 3.9% year-on-year, compared to 3.8% in July. (Dow Jones Newswires)

Business and household confidence in the euro zone fell slightly in August after hitting an all-time high in July, the European Commission said, noting that the economic sentiment indicator fell from 119.0 in July to 117.5. Economists polled by the Wall Street Journal expected an index of 118.0. (DJN)

Canada’s quarterly current account surplus rose to $ 3.58 billion or the equivalent of $ 2.84 billion in the second quarter as goods exports soared, Statistics Canada said. The data for the first quarter has been revised, Statistics Canada said, adding that the current account surplus for the first three months of the year was $ 1.82 billion, compared to an earlier estimate of $ 1.18 billion. (DJN)

(END) Dow Jones Newswires

Aug 31, 2021 9:35 AM ET (1:35 PM GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

Crypto change Binance tightens anti-money laundering checks after regulatory stress

  • Binance is rolling out stricter background checks
  • Changes introduced with immediate effect
  • The pressure from regulators has increased in recent weeks

FRANKFURT, Aug. 20 (Reuters) – Major cryptocurrency exchange Binance said Friday it would call for stricter background checks on customers with immediate effect to aid anti-money laundering efforts.

Binance, the world’s largest platform, has come under pressure for the past few months from regulators around the world who are concerned about crypto’s potential for money laundering and the risks to consumers from volatile crypto trading.

The exchange, whose holding company is registered in the Cayman Islands, has reduced its product offerings, including leveraged trading and tokens linked to stocks, and announced that it intends to improve relations with regulators. Continue reading

The money laundering potential of cryptocurrency exchanges has long troubled regulators, including U.S. Treasury Secretary Janet Yellen and European Central Bank President Christine Lagarde, who raised concerns earlier this year.

The Dutch central bank said Monday that Binance was failing to comply with its anti-money laundering and terrorist financing laws.

Binance announced on their website that users would have to go through a verification process in order to access their products and services. Those who have not done so can only withdraw funds, cancel orders and close positions.

Until now, document-based ID checks at Binance were only required for users who wanted higher trading limits. Users will now need to upload an ID, driver’s license or passport to prove their identity, Binance said.

“This will further improve user protection and fight financial crime,” said the move.

Binance CEO Changpeng Zhao, a Canadian known by his nickname “CZ”, tweeted a link to Binance announcementsays “Actions speak louder than words”.

The steps taken by crypto exchanges to perform identity and background checks remain different, with some requiring full documentation and others allowing users to sign up for accounts with just one email address.

Binance’s spot trading volume was $ 455 million in July, almost a third less than the previous month, but still number 1 in the world according to data from CryptoCompare.

Binance’s corporate structure is opaque, although the holding company is registered in the Cayman Islands according to UK court documents and the Malaysian Securities Commission.

Reporting by Krisztian Sandor in Frankfurt and Tom Wilson in London; Writing by Tom Wilson Editing by Rachel Armstrong and Elaine Hardcastle

Our standards: The Thomson Reuters Trust Principles.

St. Louis stress washing enterprise to boost cash for veteran group

ST. LOUIS – August 6th marks the 10th anniversary of one of the darkest days of all time for the special forces of the military.

A CH-47 Chinook military helicopter was shot down while attempting to secure a ranger unit that was pinned to the ground in Afghanistan.

When the helicopter made its final landing, a Taliban fighter shot down the helicopter with a rocket-propelled grenade.

A total of 31 American heroes died. Jeremy Callaway, the owner of Major League Pressure Washing in St. Louis, served with three of the men who died that day.

They were close personal friends. Callaway now washes homes every year to raise money for a charity that supports the families of the fallen.

Major League’s high pressure wash will wash 31 homes in Wentzville.

All of the money raised goes to 31Heroes, which helps families with their expenses and supports programs that help with traumatic brain injuries and post-traumatic stress.

Callaway would like to hear from homeowners and homeowners associations interested in getting involved in the future.

Shut down

Suggest a correction Correct

‘Strain from management’: Slater docs declare cash influenced previous medical choices

PROVIDENCE, RI (WPRI) – Top Doctors at Eleanor Slater Hospital claim previous administrations have pressured doctors to ensure the state facility had more medical patients than psychiatric patients to question the facility for millions of dollars in federal funding to deliver.

The new revelation came to light during a Senate Oversight Committee hearing Monday when lawmakers satiated hospital managers with questions related to Eleanor Slater’s many ongoing problems. Chief Medical Officer Dr. Brian Daly testified that over the past few months he has realized how money has affected the way some patients have been diagnosed, admitted, and treated in the hospital in the past.

“That was pressure from the leadership,” Daly told lawmakers. “When I got here, I was a little stunned by the patients who were here and that there was no effort to get them discharged. Since I came from other hospitals, that was pretty shocking. ”

At the heart of the problem is an obscure federal regulation known as Mental Illness Institutions, or IMD, that was launched in the 1960s to keep psychiatric patients out of government facilities.

Fast forward half a century and the rule has been nuanced, its effectiveness being hotly contested in the public and private health sectors. But in simple terms, Eleanor Slater cannot have more psychiatric patients than medical patients if she continues to be eligible for government reimbursement through the U.S. Centers for Medicare and Medicaid Services (CMS).

Tens of millions of dollars in government support are at stake, giving state officials a clear financial incentive to accurately manage patient counts so that psychiatric patients never exceed medical patients.

The head of the medical service, Dr. Andrew Stone, who works closely with Daly, put the historical thinking about Eleanor Slater patients more bluntly: “Medical patients are equally valuable; The mentally ill are not valuable. “

Daly said the potential for a loss of federal funding in the past was clearly in the minds of hospital management, claiming his team found evidence that previous protocols were tampered with to promote medical admissions and prevent medical discharges. Daly even claimed that in some cases, patients’ diagnoses were changed – all to make sure federal funding didn’t stop.

“We found a lot of information that there have been efforts in the past to make sure the odds were always in favor of medicine, but only just barely,” he said. “All we saw was keeping the IMD mix in a good place.”

In a specific example, Daly said that Eleanor Slater moved about 20 psychiatric patients to Notre-Dame de Fatima Hospital in 2016 after the latter set up a long-term behavioral clinic. The reason? “Because the IMD mix was in trouble,” he said.

“Everyone knows that we moved patients there in 2016,” said Daly. “I think I have emails that the IMD mix was wrong or in danger.”

The blatant description of how patients were treated for financial reasons aroused surprise and disbelief among some legislators. The chairman of the oversight committee, Louis DiPalma, D-Middletown, described Daly’s testimony as “worrying”.

State Senator Jessica de la Cruz, R-North Smithfield, described the claims as “quite shocking” before challenging doctors on some of the underlying details.

“Essentially, your allegation about these patients being held is, I’m not saying against their will – but almost there,” she said. “That sounds shameful to me.”

State Sen. Jonathan Acosta, D-Central Falls, said it was hard to deny that the IMD requirements created a financial incentive regardless of whether people acted on them. He also said there was widespread agreement within the General Assembly on the desire for “accountability” in the state institution, which has been under intense public scrutiny in recent months.

“People want a couple of heads to roll,” he said.

Billing remains one of the many problems that currently plague Eleanor Slater, with the IMD mix that got out of hand over the past 18 months has been a major problem. In 2019, Rhode Island suspended CMS billing after concerns were raised that the hospital incorrectly had more medical patients than psychiatric patients.

Billing has yet to proceed, and the ruling has since cost the state more than $ 100 million in general revenue to pay for hospital expenses, once covered by CMS.

Hospital managers – including Daly and Stone – released a new report last month showing that 79% of the hospital’s patients are now considered psychiatric patients, a sharp increase from December when the mix was around 50:50.

While the new report further complicates the question of whether the state is eligible for federal funding, Daly said it reflects much more accurately the actual diagnoses of patients in the hospital. The analysis is now under external control.

The RI State Medicaid Office and the RI Executive Office of Health and Human Services hired a team from Butler Hospital to conduct an independent review of how many beds are occupied by patients with mental illness as the primary diagnosis. The results of this review are expected to be available by the end of July.

When asked by Acosta whether the hospital would be financially viable without federal support, Daly stressed that the General Assembly and Governor Dan McKee could always fund a state hospital entirely from state funds. However, he found that Eleanor Slater’s surgery currently costs more than $ 500,000 per patient per year.

“When the money goes away it’s difficult to know how to go on,” said Daly. “It’s an expensive offer.”

Eli Sherman (esherman@wpri.com) is a Target 12 investigative reporter for WPRI 12. Connect with him on twitter and on Facebook

Willow Smith didn’t anticipate profession stress | Leisure Information

Willow Smith didn’t “think” that musicians would put that much “pressure” on.

The 20-year-old singer, who was only 13 when she released her debut single Whip My Hair, was concerned about her career choice with her famous parents, Will Smith and Jada Pinkett Smith. It’s about work, ”he said, but admitted that she was too young and too naive to take her warning seriously.

In response to the digital version of V Magazine, she said, “I started dancing when I was seven. I think it was around that time that I started making music.

“But I did a GarageBand song for the Chinese ‘The Karate Kid’ set and brought it to my parents. I want to sing. ”And they said to me first,“ It’s really good. Is it? “And I thought,” Yeah, I’m sure. “

“And they said, ‘This is going to be a lot of work, so let’s just make sure. We just want you to know that you are really young. And the people who do that. Most of them are much older than you. “And you have to deal with more pressure.” You told me immediately.

“I didn’t really believe them because I was young. And apparently I came to a place where it was too much. I took a step back and understood what I wanted to do. Had to do. “

Willow is now facing “additional pressure” as he goes in a rockier direction and admits that his love for “metal culture” was a target of bullying in his youth.

She said, “Being a black woman in the metal crowd is very, very different, in addition to the pressures that the music industry puts on you. Well, metal culture, metal world and just it’s like the added pressure of rock music. I was bullied at school hearing about Paramore and my chemistry romance. “

Willow Smith didn’t expect the career pressures | Entertainment news

Source link Willow Smith didn’t expect the career pressures | Entertainment news