4
B ULK D ISTRIBUTOR
Flexitanks
January/February 2019
Flexis ideal for shipping glycerine
G
lycerol is a non-toxic organic compound,
known commercially as glycerine. It is a
by-product of two independent processes:
hydrolysis and transesterification. The former
is used for soap and fatty acid production
while the latter is the process in which
biodiesel is produced. Today, around 66
percent of the world’s glycerine supply comes
from biodiesel production.
As one of the safest industrial chemical materials,
glycerine is used extensively in the pharmaceutical,
nutraceutical, food and beauty industry.
Research show that the glycerine market will
reach 6.3 million tonnes by 2024, up from 3.5
million in 2016; a CAGR of 7.5 percent. The
growth is largely down to two factors. The first
involves the growing demand for renewable energy
sources, which is driving the biodiesel market and
thus benefitting the growth of the glycerine
market, too. Second is the growing popularity of
natural ingredients in cosmetics, food and
beverages and personal care products, which is also
boosting the demand for glycerine derived from
vegetable oils.
Glycerine was discovered accidentally in 1779 by
a Swedish chemist, KW Scheele, when he heated
olive oil and litharge to produce a new transparent,
syrupy liquid. However, it wasn’t until 1866 that it
became economically and industrially significant as
a component in the production of dynamite. Until
after World War II, nearly all commercial glycerine
was produced as a by-product in the manufacture
of soap.
Since then, the market has grown steadily as
more than 2,000 uses for the product have been
discovered. However, the supply/demand balance is
delicate, so cost efficiencies remain a priority for all
parties involved.
BeFlexi says flexitanks represent many advantages
for transporting glycerine. By far the most
important is the cost efficiencies that flexitanks can
bring. In essence, flexitanks optimise the supply
chain by allowing producers to ship the loaded
product directly to the customer.
With flexitanks, producers aren’t risking capital
loss through the devaluation of their commodities
which could otherwise be stored for months on
end, the supplier states. Shippers can sell smaller
units (as low as 16,000 litres) and because the
shipments are more immediate, they have a better
turnover rate, which thereby increases their cash
flow. Moreover, they can deliver commodities of a
more precise value that they can control because
there are fewer transhipments – meaning fewer
losses – and no demurrage costs to think about.
Because they are single-use, it means that there are
no cleaning costs either, or even the need to return
empties.
Another advantage is diversification and market
accessibility. Flexitanks can be produced for
quantities as small as 16,000 litres and as large as
24,000 litres. This means that customers in new
markets can be reached. Because flexitanks are
multimodal, they can reach even customers inland.
And the financial risks are minimised because it’s a
smaller cargo.
On top of this, flexitanks can be recycled and
disposed of safely and with little to no impact on
the environment.
Into Ecuador
Meanwhile, BeFlexi is expanding in Latin America.
Alongside Brazil and Argentina, the company now
provides flexitanks in Ecuador.
Ecuador is the 70th largest export economy in
the world and the 105th most complex economy
and has in the recent years exported around
US$18 billion annually, $5.25 billion of which is
crude oil.
BeFlexi reports that a customer in Ecuador has
been testing a shipment of crude palm oil with its
flexitanks. The customer successfully installed and
loaded the flexitank with heating pads.
Miguel Fernandes, sales executive for the LATAM
countries, said: “It’s great for us to expand into
more Latin American countries. The market on
this continent looks very promising and I look
forward to deepening our presence, increasing
our knowledge of the market dynamics and
establishing a greater reputation for BeFlexi.”
Top glycerine export countries by value (2016):
Germany US$228m
Malaysia US$217m
Indonesia US$197m
B ULK D ISTRIBUTOR
Est. 1990
HAVE YOU SEEN OUR WEBSITE?
Bulk Distributor’s website is regularly updated
with the latest news, analysis, product reviews,
exclusive interviews and industry events. With
growing global traffi c, the website is becoming
a hub for the bulk logistics industry.
Bulk Distributor’s monthly email newsletter is
one of the most widely read in the industry.
For more information on how to promote your brand online,
contact: Mike Reardon: [email protected]
Anne Williams: [email protected]
Bulk Distributor is also on Twitter
(@bulkdistributor) and
IBWSS includes a trade show floor where producers and manufacturers can
meet face-to-face with brand owners, suppliers, distributors, and retailers
China already ranks as one of the Top 10 wine producers in the
world, as well as the number one import destination for red wine
If you’re going
to San Francisco
E
vent organiser Beverage Trade Network
(BTN) has announced the first round of
speakers for this year’s International Bulk
Wine & Spirits Show (IBWSS), which will take
place on 23-24 July in San Francisco, USA.
Each year, IBWSS brings together producers,
manufacturers, brand owners, distributors and
retailers within the fast-growing US private label
and bulk wine and spirits industry.
The list of speakers headlining this year’s event
includes Andy Abernathy, SVP, business
development, ABC Fine Wine & Spirits, Jena
Domingue, VP, global sales, WineDirect, and Kurt
Lorenzi, VP, global sourcing, Winery Exchange.
The speakers will outline the key factors
impacting the future trajectory of the private label
and bulk wine and spirits industry within the US.
Based on his experience working for Florida’s
oldest and largest independent retailer of fine
wine and spirits, Andy Abernathy of ABC Fine
Wine & Spirits will share his insights on how
suppliers can get their wines onto the shelves of
major retailers. Jena Domingue will share her
experiences and insights on building successful
Direct-to-Consumer (DTC) business models. Kurt
Lorenzi will help participants better understand
the forces of supply and demand in the bulk wine
industry, as well as the factors to keep in mind
when developing a private label wine.
Speakers at IBWSS San Francisco will focus on
ways to help grow the bottom line of industry
participants, including new market strategies, best
practices, and tactics to leverage important new
trends. With a diverse line-up of speakers
planned, it will be possible to view the rapidly
growing private label and bulk wine industry from
a number of perspectives and open up innovative
solutions for participants.
“This is really a unique opportunity to hear
about new opportunities in the bulk wine & spirits
and private label industry,” said Sid Patel, founder,
and CEO of BTN. “Based on the success of last
year’s show, we’re really excited to hear about the
dynamic, evolving business models that
companies are using to achieve success in this
important market.”
IBWSS also includes an active trade show floor
where producers and manufacturers can meet
face-to-face with brand owners, suppliers,
distributors, and retailers.
In addition, BTN is also taking the event to China
with IBWSS making its debut in Shanghai in
November this year.
China already ranks as one of the Top 10 wine
producers in the world, as well as the number one
import destination for red wine, so it’s perhaps no
surprise that China is finally getting its own bulk
wine, bulk spirits, and private label show.
Previously, the event was only hosted in London,
UK, and San Francisco.
The arrival of IBWSS China in 2019 is
emblematic of the changing structure and
dynamics of the global wine industry. Once
thought of only as an import destination for
expensive bottled wines, China is now much more
than just a huge, untapped consumer market. It is
also home to award-winning wine regions, up-
and-coming wineries that have partnered with
some of the most prestigious names within the
French wine industry, and a sophisticated network
of importers, distributors, and retailers.
As a result, many of the trends that have been
observed in other, more developed wine markets
– such as the rapid growth of the private label
wine & spirits industry – are now making their
way to China. That has opened the door for
foreign players to participate in a myriad of
different ways within the Chinese wine industry.
Just as Australian bulk wine producers ship their
wines via container ships to Britain, where they
are then bottled and packaged, that same
dynamic is starting to emerge in China, which
already has a large number of retail chains
offering their own private label products. In order
to meet consumer demand for wine, China is now
turning to bulk producers around the world.
www.ibwsshowchina.com