Wine Producer Sells Bag-in-Box to Reduce the Final Price

In Brazil, 25% of sales volume is already done in alternative packaging, which resembles a box of long life milk

Daniela Barbosa, journalist of IG Economia, July 25, 2010.

Imagine this scene: you go to a restaurant, ask the wine list and pick one. At the time of serving the drink, the waiter brings to the table a cardboard box, similar to those of long life milk, but with slightly higher capacity. You, for a moment, may even find that this is a joke, but learns that it’s not. The box in question, named bag-in-box, is not new, but in Brazil as a way of reducing costs, its adoption has grown in recent years.

The model was created by Scholle Packaging over 50 years ago. The package consists of a flexible polyester bag with nozzle and cap, which can be packaged in a cardboard box, wood or plastic. “The bag-in-box increases the lifetime of the product,” says Paula Ziolli, responsible for marketing from Scholle Brazil. “The wine, once opened, can be consumed within two months, because the bag prevents oxygen contact with the wine.” This prevents the oxidation of the beverage.

The lower cost is one of the attractions of alternative packaging. A copy can replace four to six bottles of glass, depending on size, and reduce by 30% in the final price of the drink. Versions of the bag-in-box three and five liters are most often used by producers of Brazilian wines. Scholle is a leading global provider of packaging. In Latin America, about 70% of wine casks use Scholle Packaging’s bags.

Of four wines, one is in Bag-in-Box

In Brazil, more than 75 wineries have adopted the system. According to estimates, over 25% of national wines are packaged in bag-in-box. The group Valduga, traditional wine city of Bento Gonçalves (RS), was the first to try the package. There are approximately five years, the company began the bottle part of its production of table wines and fine in bag-in-box. According Valduga Juarez, president of the group, about 20% of the wines produced by the winery are packed in bags.

Don Guerino of Alto Feliz (RS), also adopts the packaging. According Maicon Motter, commercial director of the company, 50% of red wines are bottled in bags. “This is a global trend and has no reason to not suit. The cost-benefit ratio is worthwhile for anyone who produces and consumes wine. It’s more economical, “says the executive.

The Dal Pizzol, Bento Gonçalves (RS), started to adopt the package just over a year. “There was good acceptance of the product and packaging is perfect, more hygienic and keeps the drink longer,” said Scott Dirceu, the winery’s winemaker. Practicality is another factor cited by him. “The box takes up less space than conventional bottles; it can be embedded in any space.”

Leadership

The Perini, Farroupilha (RS) is the largest producer of wines in bag-in-box of Brazil. The winery has estimated that this year, about 400 000 cartons of drink, three and five liters, will be offered for sale. To improve the production system, the winery recently purchased the first automatic bag filler from Brazil.

According to Franco Perini, director of the winery business, the investment to purchase a machine was R$ 650 000. With it, Perini plans to increase its national market share of wine by 30% this year.

In Brazil, the bag-in-box there is a little over five years, but in some countries the sale of wine in the box is already quite mature. Norway, Sweden and Australia cask over 50% of their wines in bags. In the U.S.A, 20% of the wines produced are packed in bag-in-box.

Brazil is currently the 16^th  wine producer in the world ranking. Last year, Rio Grande do Sul, the largest state producer of the beverage in the country, with 90% of the total, were produced more than 430 million liters of wines, grape juices and derivatives.

Original article: http://economia.ig.com.br/inovacao/produtor+vende+vinho+ensacado+para+reduzir+preco+final/n1237724361358.html

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