1. How to Optimize Logistics with Bulk Wine & Spirits Solutions

2. Area Director North America
Company brief introduction
Mr. Thomas Barfoed
Area Director North America
JF Hillebrand Group

3. JF Hillebrand Group 2 key global brands
Beer, wine & spirits
Packaged and bulk
2 key global brands
International logistics service providers specialized in niche markets
Trans Ocean led the way in the development of a one way aseptic flexitank. JF Hillebrand Group acquired Trans Ocean 2007.
Industrial bulk liquids

4. WHAT IS BULK SHIPPING?
THE BULK ADVANTAGE
EQUIPMENT OPTIONS
INDUSTRY SAFETY
QUALITY CONTROL
BULK SUPPLY CHAIN

5. Defining “bulk” cargo Bulk Trailer Flexitank ISO Tank Bulk Tanker
Bulk is product that is sold unpackaged in large quantities
Road transport
Sea Freight
Bulk Trailer
2-24,000* liters
Flexitank
12-24,000* liters
ISO Tank
(up to) 26,000 Liters
Bulk Tanker
~500,000 liters
Until the introduction of a Flexitank for bulk liquids in the commercial market in the 1970’s , shippers had two choices, bulk tankers or ISO tanks (ISO = international shipping standard)
Bulk trailers (USA domestic market, US-Canada, Intra-European markets) – single or compartmentalized tanker trucks (carriers typically operate their own fleet)
Bulk Cargo

6. Intermediate Bulk Containers
Defining “bulk” cargo
Bulk is product that is sold unpackaged in large quantities
Bottles
9 Liter (case)
Drums
(up to) 200 Liters
Intermediate Bulk Containers
(IBCs or Totes)
1,000 Liters
Palletized Cargo

7. WHAT IS BULK SHIPPING?
THE BULK ADVANTAGE
EQUIPMENT OPTIONS
INDUSTRY SAFETY
QUALITY CONTROL
BULK SUPPLY CHAIN

8. Cased Goods Shipping Model
Production
Bottling
(Origin)
Shipping
Market
Equipment
Pallets (US)
Cases
Liters
20’ container 10
560
5,040
40’ container 21
1176
10,584
Shipping Capacity

9. Bulk Wine & Spirits Shipping Model
Production
Shipping
Bottling
(Destination)
Market
Bottling at destination allows the option to bottle different bottle sizes or different labels depending on local market demand changes.
(producers often sell the same wine to different supermarkets using different bottles & labels)
Equipment
Pallets (US)
Cases
Liters
20’ container 10
560
5,040
40’ container 21
1176
10,584
Shipping Capacity
ISO Tank / Flexitank ,000*

10. Additional cost considerations:
Example – FOB Spanish Port to door Napa
PRODUCT IN BULK
PACKAGED PRODUCT
1 Flexitank = 24,000 Liters
1 x $4,750 shipping cost
Cost per liter = $0.20
2.3 x 40’ Dry containers = 24,000 Liters
2.3 x $4,150 shipping cost
Cost per liter = $0.40
Additional cost considerations:
Destination bottling cost?
Storage cost?

11. Shipping Model Comparison
PRODUCT IN BULK
PACKAGED PRODUCT
Private label market
Local blending
Rapidly adapt to market changes
Tax advantage*
Premium market
Estate bottled authenticity
Supply chain flexibility
Higher volume commitment
Fixed geographical bottling point
Higher transport cost per unit
Longer lead time for bottling changes

12. WHAT IS BULK SHIPPING?
THE BULK ADVANTAGE
EQUIPMENT OPTIONS
INDUSTRY SAFETY
QUALITY CONTROL
BULK SUPPLY CHAIN

13. Flexitank Benefits Limitations
Global availability
Cost advantages
Road, rail, ocean transport
Single use
Non-hazardous liquid only
Technical support
Recyclability varies by manufacturer
Shipping Capacity : 15, ,000 liters*
*Max load COA Flexitank Code of Practice

14. ISO Tank Benefits Limitations
Hazardous liquid (spirits)
Ease of loading/discharge
Temperature control
Reusable units
Availability, re-positioning
Cleaning / contamination risk
Per diem costs
Higher cost compared to flexitanks
Shipping Capacity : 22, ,000 liters*
*Max load for California is 24,000L

15. IBC’s / Totes Benefits Limitations
Ideal for brand trials
Good for receivers with limited capacity
Storage ?
Unit positioning at origin
Limited payload
Disposal (resale market?)
Addt’l handling / repositioning
Non Hazardous liquids
Quality concerns?
Shipping Capacity : up to 1,000 liters

16. WHAT IS BULK SHIPPING?
THE BULK ADVANTAGE
EQUIPMENT OPTIONS
INDUSTRY SAFETY
QUALITY CONTROL
BULK SUPPLY CHAIN

17. 65 Flexitank – Quality Standard Timeline Container Owners Association
Flexitank Code of Practice established
New PAS/1008 Flexitank Standard
COA launched
Nov 2004
June 2008
Jan 2009
Jan 2015
Sep 2016
Flexitank division launched
Flexitank Management Committee (FMC) created
Flexitank Companies are COA Associate Members 65

18. Flexitank Industry Standards
Flexitank Code of Practice
Container selection for transport
Container and flexitank marking
Incident management, insurance, training
PAS/1008 Standard
Materials, Valves (loading /discharge)
Flexitank System (including rail impact testing)
Commodity loading temperature range
Documentation, Incident Records
COA – Flexitank Division Reference
LINK FOR CODE OF PRACTICE:

19. WHAT IS BULK SHIPPING?
THE BULK ADVANTAGE
EQUIPMENT OPTIONS
INDUSTRY SAFETY
QUALITY CONTROL
BULK SUPPLY CHAIN

20. Questions to ask about Flexitank Quality
Manufacturer
Owned or purchased?
Factory Standards ISO 9001: 2008, ISO 22000
Compliance
Container Owners Association ISO PAS 1008: 2016
Materials
100% virgin grade materials? Opaque or transparent?
Barrier
Protection layers against oxygen ingress, halo-phenals “cork taint” and hydrocarbon taints “naphthalene”
Food Safety
Certified to EU and FDA standards?
Performance
R&D: valve technology and design?

21. Questions to ask about ISO Tank Quality
Ownership
Fleet owned or third party? (liability, cross-contamination?)
Commodity
ISO Certified for hazardous liquids?
Compliance
Wine & Spirits Trade Association (WSTA) Code of Practice for transport in tanks, vessels, including cleaning practices
Food Safety
Certified to EU and FDA standards?

22. WHAT IS BULK SHIPPING?
THE BULK ADVANTAGE
EQUIPMENT OPTIONS
INDUSTRY SAFETY
QUALITY CONTROL
BULK SUPPLY CHAIN

23. What to consider for converting to bulk shipping
Facilities
Logistics
Brand integrity
Quantity
Destination bottling capacity?
Destination storage?
How quickly is the SKU moving?
Fast mover?
Spirits or wine shipping solutions and cost?
Estate vs local bottling?

24. What to look for in a bulk logistics partner?
Manufacturing
Research & Development
Logistics Management & Solutions
Information & Risk Management
R&D/Manufacturing – design, raw materials, vendor management, compliance, control & safety
Fitting & technical assistance – trained/certified carriers, experienced drivers, load/discharge training, 24/7 support, project management
Intermodal Transport Mgmt – delivery door to door, flexible supply chains, demurrage & detention solutions
Information & Risk Mgmt – tracking/reporting, order mgmt. system, quality indicator reports, incident & risk traceability, compliance
Recycling – flexitank recycling initiatives, bulkhead recovery, UN Global Compact
Global Network
Fitting & Technical Assistance
Safety, Recycling &
Sustainability
Global Network
Infrastructure

25. Thank you, visit us at Table 83
Q&A