Aegg capitalizes on glass demand surge with new ranges, invests in US$3.3m warehouse facilities

07 Aug 2019 --- Food and drink packaging company Aegg has extended its glass food packaging offerings, capitalizing on the sustainability trend. The four new ranges include glass jars and bottles for food; glass bottles for soft drinks, juices and soups; glass bottles for water; and a table-presentable range. The new ranges join Aegg’s existing recyclable plastic and glass pots and bowls. The company is also set to open its first UK warehouse facilities later this year in response to growing demands for glass packaging.

“There are several reasons for Aegg experiencing an increased demand for glass packs over the last two years. Most significantly, consumer attitudes to plastic are changing, with glass growing in demand. Also, due to the current shortage of capacity of glass in the UK, companies are looking to new suppliers such as Aegg to source their glass requirements from overseas,” Jamie Gorman, Managing Director at Aegg tells PackagingInsights.

Jamie Gorman, Managing Director at Aegg.Gorman explains that the glass packaging shortage is partially due to last year’s hot summer and England’s success in the football World Cup campaign having a big impact on beer sales – thus using more glass bottles.

“There are also major glass furnace rebuilds currently happening in the UK, which means that the supply has decreased while these are taking place. The big increase in the tonics market, with the likes of Fever-Tree citing 40 percent growth in revenue for 2018 alone, has also had an impact on supply. With the increased demand for glass packaging and less capacity in the UK, this is creating the current shortage of glass packaging available in the marketplace,” he continues.

Aegg’s new warehouse facilities are based near Eye in Suffolk, with one of the warehouses comprising 60,000 square feet, a result of a £2.7 million (US$3.3 million) investment and will create 50 new jobs. The expansion is supported by New Anglia Local Enterprise Partnership through the Growing Business Fund.

“We have invested in new warehousing, as well as our own fleet of 27 vehicular units. Together, this provides the company greater direct control over the supply chain, giving our customers enhanced confidence in Aegg’s ability to deliver contractual quantities in full and on time. This year alone, we will be importing around 100 million units of glass packaging, including jars for sauces and jams, as well as bottles for drinks and sauces. This figure is set to grow further as demand continues to increase,” says Gorman.

He notes that as the company is set to open a recyclable plastics manufacturing unit within the warehouse as part of phase two of the building, managing the space efficiently between the warehousing and manufacturing will be key.

Additionally, as the facility is based in the UK, customers can take advantage of Brexit-driven exchange rate changes. The company also highlights the location’s transport links, with export customers benefiting from its close proximity to Felixstowe port, Britain’s biggest and busiest container port.

“We have increased our capacity, securing supply from our partners in Turkey and Thailand. We are also increasing our sales division, creating a new glass team with new members based globally to meet demand. Where companies have previously had a ‘no UK import’ policy on glass packaging, many are now importing in discussions through Aegg due to the manufacturing capacity constraints in the UK. In addition, where we have existing relationships with customers who have sourced their plastic food packaging through us, their glass packaging divisions are now looking to us to supply their glass ranges as well,” Gorman explains.

Pushing sustainability
An increased interest in environmentally-friendly options is driving increased glass sales. Gorman notes that the company is envisioning that its glass offerings will grow to become 50 percent of its business this coming year, matching its plastic sales. “Changing consumer attitudes to plastic has had a big impact, with retailers looking for more sustainable materials such as glass that meet growing consumer demand for what is deemed to be greener packaging,” Gorman notes.

Aegg is adding to its glass ranges all the time, and its bespoke glass packaging service is also growing. Through this service, customers can specify the exact shape, size, weight and customization that fits their needs.One of the warehouses comprises 60,000 square feet.

“Glass forms an impermeable barrier which keeps food and drinks fresh and tasting its best. Glass is also 100 percent recyclable – it can be melted and made into new containers again and again with no loss of quality or performance. Some of our customers, who have not ventured into glass packaging before, have now brought out new ranges in our glass packaging, such as Pots & Co with their new lighter pudding range in bespoke glass pots with their logo embedded in the bottom,” he says.

The UK government needs to lead the way in developing more coherent ways of managing sustainable packaging solutions for the country as a whole, according to Gorman. “At board management level, we have taken an active decision to engage with, and support, the British Plastics Federation in their excellent work in co-ordinating an industry-wide response to the government’s four consultation exercises on how to deliver the national Resources and Waste Strategy,” he concludes.

Earlier this year, the company launched a new range of over 20 glass packaging jars and bottles, including those designed for jams, spreads, sauces and drinks. They also have several new lines of rigid food packaging, including its thin-walled ultra-clear PP and PET pots and its innovatively designed PP plastic sauce and soup pots.

By Katherine Durrell