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Like all businesses, drinks closures producers are being buffeted by the biggest of challenges, but the industry’s commitment to improving sustainability and technical performance remains undimmed.
The global closures sector for beverage alcohol endured a challenging 2022 – and this year so far has followed a similar path. Inflationary pressures, supply chain bottlenecks and the war in Ukraine have pushed up production costs and closure prices. In addition, a severe drought in Portugal last summer saw cork yields tumble by between 25% and 30%, which will create additional pressure on cork stopper prices.
Despite these challenges, many of the sector’s biggest players reported strong sales last year, with the reopening of the on-premise in many markets helping to drive sales.
In terms of NPD and marketing activity, suppliers remain locked in a highly competitive struggle to argue the sustainability merits of their latest closure lines – a credential that now rivals other qualities such as performance, aesthetic appearance and susceptibility to TCA.
The challenges fuelled further consolidation within the sector, which has already witnessed a considerable degree of M&A activity in recent years. Continued premiumisation within the drinks industry, especially within spirits, should benefit the leading suppliers. Global Drinks Intel takes a look at some of the most recent developments.
MA Silva continues to invest despite rise in global costs
Family-owned cork stoppers producer MA Silva marked its 50th year anniversary with continued investment in a new Neotech facility near Feira in northern Portugal.
The company described 2022 as a year of growth and investment, despite increased production prices brought on by rising energy costs and supply chain issues, as well as continuing instability caused by the pandemic and the war in Ukraine.
Demand for the company’s closures last year grew in traditional markets, such as France, Italy, the US and Spain, prompting expansion of the company’s production facility dedicated to making stoppers and the micro-agglomerated cork line Neotech. Produced “from steam and pressurised, uniformly-sized, micro-granulated cork”, MA Silva describes Neotech as “a technical cork with non-detectable TCA levels”. The EUR10m [US$11m] facility now boasts an annual production capacity of up to 500m stoppers.
When it comes to cost pressures, marketing manager Nuno Silva believes the rise in global prices is here to stay and that companies must adapt accordingly. “The supply chain of glass bottles has tended to normalise,” he says, “but there are still constraints on the circulation of products, raw materials and services. It’s important to try your best to anticipate scenarios to avoid supply chain problems.”
The new Neotech plant, near the company headquarters at Feira, uses technologies that focus on cork granule sterilisation and sustainability, with a biomass generator system using cork powder from production processes to create energy throughout the facility. The goal is to produce 1bn micro-agglomerated cork stoppers per year, matching the company’s production levels of natural and technical cork stoppers.
“Being able to say that we have a suitable product, mechanically and organoleptically, is for us a daily constant requirement that motivates us to do more and better,” says Silva. “We operate at the forefront of the cork industry, simultaneously with the technical demands of a 100% verticalised activity, in the production of natural and technical cork stoppers. Their performance has earned us several awards and distinctions, above all for cutting-edge technologies that guarantee the eradication of TCA, such Dynavox, Sara Advanced, Neotech and OneByOne.”
Guala eyes luxury leadership position after Labrenta acquisition
Guala Closures Group took a big step towards becoming a leader in the fast-growing luxury segment with last year’s acquisition of high-end closure producer Labrenta, based in Vincenza, Italy.
The purchase meant Guala effectively added a luxury division to its offer, integrating with Labrenta to create a wide range of premium closures. The group now offers a broad range of higher-end products, enabled by a number of R&D centres dedicated to its luxury offering, each one with a specific focus on different materials.
The R&D centre in Vicenza, for example, specialises in wood, while a facility in Bulgaria specialises in Zamak closures and material combinations. A UK R&D team, meanwhile, focuses on sustainable closures, such as the Oceanworks range made from recycled marine waste plastic, and a team in Mexico, with its close proximity to the tequila industry, offers expertise in woodworking, metallisation, finishes and decoration.
Guala says it remains committed to sustainable products and manufacturing processes, an approach that led to the implementation of further measures last year to become more environmentally conscious, including obtaining Sustainability and Carbon Certification (ISCC) Plus status for its production sites in Italy, France and the UK.
“To accelerate the transition of the group towards a carbon-neutral and resource-efficient economy, in May 2022, we joined the Science Based Targets Initiative (SBTI) and last December we received the official validation of our ambitious targets,” says quality & sustainability director Paolo Lavazza. “By 2030, Guala Closures Group commits to reducing absolute Scope 1 and 2 greenhouse gas [GHG] emissions by 44% from a 2020 base year. We also commit to reducing Scope 3 emissions from purchased goods and services and fuel- and energy-related activities by 25% per 1m manufactured closures within the same timeframe,” he adds.
The company has already achieved a 52% reduction in direct GHG emissions between 2016 and 2022, and a 31% reduction in water consumption in the same timeframe. Moreover, 50% of Guala’s electricity usage is now generated from sustainable sources.
Sustainability drives Vinventions innovation
Luxembourg-based Vinventions is flying the flag for sustainable packaging by partnering with Packamama, a French producer of flat wine bottles made from 100% recycled PET, to help sell the eco-friendly product.
“With Packamama, we can help wineries suffering from the shortage of glass bottles by proposing a PET bottle alternative,” says Vinventions’ head of innovation, Stéphane Vidal. “Moreover, the eco-flat bottle, made from 100% recycled PET plastic, will help wineries improve their CO₂ footprint.”
Earlier this year, Vinventions unveiled a new closure line called Nomacorc Ocean, made from recycled Asian coastal plastic waste that has a high risk of ending up in the oceans. According to the company, the closure has the same aesthetic look and performance as its existing synthetic closures made from recycled plastic. Initially, two wineries have chosen to use Nomacorc Ocean – Sicily’s Donnafugata Estate and France’s Maison Bouey.
Tapì acquisition heralds new era of growth
M&A activity in closures has remained high, a key indicator of the industry’s underlying health. London-based private equity firm Stirling Square Capital Partners’ acquisition of Tapì Closures earlier this year has opened up significant growth opportunities for the Italian company, according to marketing manager Paolo Boratto. He says the deal will allow Tapì to access greater financial resources to expand its presence in existing markets and enter new ones, develop new products, improve marketing and optimise supply chain and logistics operations.
The Stirling Square transaction has also enabled Tapì to grow through strategic acquisitions of its own. “The company’s strong financial position and access to Stirling Square’s network and expertise provide the resources and support needed to identify and pursue attractive targets,” says Boratto. “By acquiring complementary businesses, Tapì can enhance its product offerings, expand its customer base and enter new markets.”
New production and administrative facilities are also in the pipeline, according to Boratto. “The factory and offices will also serve as the company’s headquarters, providing a centralised location for operations and facilitating collaboration and communication among employees,” he explains. “This can help Tapì improve its organisational efficiency and enhance its ability to respond to changing market conditions and customer needs.”
Tapì has created a programme of product launches for this year that includes both new and refreshed products. According to Boratto, 2023 will see a focus on a range of products that includes Starlight, a closure made using ultrasonic welding technology that is fully customisable and avoids breakages, as well as a range of sustainable products such as Abor, made from waste raw ingredients from the distillation process. There’s also T-Cask, a range of closures that is sourced from spent casks formerly used by distillers.
“Another exciting product is the ‘vintage effect’, a unique treatment applied to aluminium closures that replicate natural ageing, resulting in a one-of-a-kind finish,” adds Boratto.
Amorim hails success of Naturity and Xpür anti-TCA processes
Amorim, the world’s largest cork producer, saw its sales exceed the EUR1bn mark for the first time last year, while sales of its cork stoppers rose 27.1%.
Additional highlights of the year for the company included the EUR48.7m acquisition of a 50% stake in SACI Group, a leading producer of wire caps for sparkling wines; the completion of its acquisition of rival cork manufacturer Bourrassé, and purchases of cork forest assets in Portugal that now exceed 5,100 hectares.
Amorim continues to promote and expand the use of two anti-TCA processes – Naturity and Xpür – which debuted in early 2021. The processes offer non-detectable rates of TCA for both natural and technical cork stoppers. The Naturity process was designed for natural cork closures and employs the non-sequential use of pressure, temperature, purified water and time to remove up to 150 volatile compounds, including TCA.
Amorim’s Xpür technology extends this non-detectable TCA assurance to its micro-agglomerated Neutrocork Premium and Qork cork stoppers. Amorim says the Xpür technology enhances the traditional super-critical CO₂ application used by the cork industry to eliminate TCA, using modern technology.
Compared to the old system, the Xpür technique consumes only 25% of the energy and 10% of the CO₂, while reducing TCA levels to non-detectable levels and preserving the physical and mechanical characteristics of the cork. The technologies have both had their efficacy independently validated by a UK laboratory, according to director of marketing & communications Carlos de Jesus. He says the technologies have proven commercially successful, with new Xpür units currently being installed.
“We brought super-critical technology well into the 21st Century,” adds De Jesus. “People realise that you don’t have to have unnecessary classic components in the production process. We use a lot less energy and produce a lot less CO₂. We’ve also concluded a lifecycle assessment for Xpür and we’re proud to have managed to increase the negative footprint, despite bringing in this complex and sophisticated technology.”
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