Cargo traffic jams will also affect glass bottles. Your pantry staple may cost more | NPR News | Ideastream Public Media

2021-11-10 03:40:09 By : Ms. Emma Wong

This is another unexpected example of how the supply chain has been overturned by the pandemic: the glass bottles used for everything from vinegar to pasta sauce have fallen into a bottleneck. When you can buy the bottle at all, this will push up the price.

Just like many other industries are struggling to ensure supply, producers of pasta sauce and high-end spirits have seen the glass used in their humble containers be blocked by a large amount of cargo, which forces them to either bear higher costs or dispose of them. Pass it on to consumers.

There seems to be almost no sign of relief: The Labor Department reported on Wednesday that consumer prices have risen by 5.4% in the past 12 months, reaching the highest level of inflation in more than a decade. Grocery and gasoline are important drivers of recent price increases.

Companies such as Lindera Farms in Delapland, Virginia, have been struggling to find bottles at any price.

This is an iconic season for this handmade vinegar manufacturer, but owner Daniel Lieberson is worried that unless a batch of expired glass bottles are shipped from Italy in the next few weeks, he will not be able to Pack his products in time-an important Christmas season.

"There is a captain who takes my life in his hands," Lieberson said. "Basically, if something goes wrong with this shipment, I'm done."

The problem is not in the country: domestic glass manufacturers insist that they produce as many bottles as they have in the past.

"There is no shortage of raw materials for glass in this country," said Scott Defife, director of the Glass Packaging Institute. "These factories are operating at full capacity to make new glass containers."

But 20% to 30% of food and beverage bottles used in the United States are usually imported from Europe or Asia. Many of these bottles have encountered the same supply chain obstacles that have tied up products from memory chips to holiday toys.

More importantly, since domestic glass factories are already operating at full capacity, it may be difficult for customers whose imported bottles are delayed to find alternatives.

This frustrated Liberson. His vinegar is made with hand-picked wild onions and other fickle ingredients that are still easier to find this year than glass bottles.

"Natural whims are not as intimidating as whims that should be an organized, structured supply chain," Lieberson said with a smile. "But here we are."

In Rochester, New York, Paul Guglielmo (Paul Guglielmo) faced a similar challenge in obtaining a 16-ounce jar for his namesake pasta sauce.

"We have been told at least twice that a particular jar will be unusable for at least a month," Guglielmo said. "The pressure it puts on us is that you are afraid of not finding materials. So how do you respond? Well, you respond by buying more materials."

Just like last year's panic buying of toilet paper and emptying store shelves, this hoarding behavior can worsen shortages and drive up prices.

In the past, Guglielmo's pasta sauce pint jars sold for 33 cents, but now they sell for 47 cents—a 42% increase before he cuts the first tomato.

Thanks to a more efficient bottling process, Guglielmo can bear some of the higher costs. But he also raised his prices in the grocery store.

"I think that throughout the supply chain, everyone makes this decision, and then they decide, do we want to eat all of them? Do we want to eat some of them? Do we want to pass them all?" Gugliel Don't say.

Grocery prices have risen by 4.5% in the past 12 months, with a 1.2% increase from August to September alone.

As a "co-packer", Guglielmo not only makes its own pasta sauce, but also makes and bottled products for others. This gave him greater scale and the ability to bargain with suppliers.

Today, his 6,000-square-foot warehouse stores more empty cans than he has bought in the past. This is an insurance policy that can help him sleep better at night, but it also takes up a lot of money.

"I walked past trays, trays and unused glass trays," Guglielmo said. "We are going to use it. I want it to be here. It should be here. But I look at it and there is just a lot of cash."

Given the uncertainty of bottle supply and the possibility of empty store shelves, shoppers are warned not to wait until the last minute.

David Ozgo, chief economist of the American Distilled Liquor Council, said: “We encourage anyone who wants a special bottled wine for Christmas to start buying now, because you may need to visit a local retailer twice. Or three times."

Nevertheless, shoppers seeking certain products may return empty-handed no matter how early they show up.

Lieberson, a small-scale vinegar manufacturer, still hopes that his bottles from Italy will arrive at the end of October or early November. This will give him enough time to pack his products before the holidays, which usually account for about half of his annual sales.

Now, he stores the vinegar in a stainless steel bucket, crossing his hands.

"Listen, I'm a neurotic Jew," he said. "I must tell you that heart attack is the word that comes to my mind."