Bottle Reuse In Hungary’s Wine Sector

Bottle Reuse In Hungary’s Wine Sector Conference on Reusable Beverage Packaging in Europe

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Varga Winery can be found at the lake Balaton, in one of the most beautiful and famous wine region s of Hungary! Map Badacsonyörs Varga Winery Badacsonyörs Budapest 165 km

Varga Winery: the number one Hungarian winery! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],We’re committed to the use of refund bottles!

Fully automated filling line including a bottle-washing system

Bottle reuse (refill) system in socialism 1950 1970 ,[object Object],[object Object],[object Object],1990 ,[object Object],[object Object],[object Object],[object Object],Main facts ,[object Object],[object Object],[object Object],[object Object],Major changes of the 90’s in food-retail, regulation and company ownership structures affected the bottle reuse system adversely.

In the 90’s a plenty of factors made the market believe that the bottle reuse system will completely disappear soon… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Even large wineries built their new filling lines without bottle washing system! CONS

… and only a couple of factors indicated the survival of the system ,[object Object],[object Object],[object Object],Bottle reuse system still operating, but on a lower scale! PROS

Reusable bottle - Up to 31% shelf price benefit! *Shelf price benefit is calculated with 40% sales margin and 20% VAT. Total Cost Benefit (TCB): 18, 8 c Shelf Price Benefit = TCB / ( 1- sales margin ) * ( 1 + VAT ) = 18, 8 / 0,6 * 1,2 = 37, 6 c Main shelf price interval: Shelf price benefit (%): 85 c 210 c MIN MAX 31% 15% One-way or re fill : cost analysis on company level 0% 90% 90% Reuse rate (%) Calculated bottle COST = Bottle PRICE * ( 1 - Reuse rate )

Operation of the bottle reuse chain Consu- mers Wineries Whole- salers Retailers Winery1 Retailer1 Wholesaler1 Consumer Full bottle Winery2 Retailer3 Retailer2 Waste container Empty bottle

Characteristics of bottle reuse system in Hungary today ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Main bottle & case types Bordolese Rhein Burgundy 16-er wine case for 0,75 L bottles 8-er wine case for 1,5 L bottles ,[object Object],[object Object],[object Object],Magnum

Reuse (refill) rates in Hungary Total sales in bottles Recollection of reusable bottles 120 75 59 Company level (Varga Winery, 2007) Total sales in reusable bottles million bottles % 100% 60% 50% 7,1 6,9 6,4 million bottles % 100% 97% 90% Market level ( estimate) ,[object Object],[object Object],[object Object]

SWOT Analysis – Strengths & Weaknesses ,[object Object],[object Object],[object Object],[object Object],WEAKNESSES ,[object Object],[object Object],[object Object],STRENGTHS

SWOT Analysis – Opportunities & Threats ,[object Object],[object Object],[object Object],THREATS ,[object Object],[object Object],[object Object],OPPORTUNITIES

C onclusion ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],We believe that bottle reuse will be the future’s solution in the EU because it’s the most eco-friendly and cost effective way of wine packaging!

Bottle Reuse In Hungary’s Wine Sector

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Bottle Reuse In Hungary’s Wine Sector