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Drinks business

Gin bottles and packaging: the costs founders underestimate

Packaging often costs more than the gin inside it. You also have to buy it before you sell a drop. Plan for minimum orders, lead times and waste as well as the unit price.

The bill of materials beyond the bottle

List everything that touches the product or the pack: the glass, the closure, a neck seal or capsule, the front and back labels, the carton, dividers, shipper boxes and pallets. Then add the invisible items such as glue, tape, ink and the cost of printing proofs.

Each line has a unit price, a minimum order, a lead time and a failure rate. Founders usually remember the unit price and forget the other three.

Glass: weight, shape and breakage

Glass choice is a branding choice and a cost choice. A heavy bottle feels premium but costs more to buy and to ship. A stock shape from a supplier's catalogue is cheaper than a custom mould, which needs a long lead time and a large order. Think hard before commissioning anything custom.

Check the neck finish matches your closure, the fill level matches your bottle size and the bottle suits your filling line. Standard sizes differ by market: 700 ml is common in the UK and EU, 750 ml in the United States and in India. Choose for the markets you will sell in first.

Plan for breakage in transit and on the filling line. Count it as a cost, not a surprise.

Closures, seals and labels

The closure must fit the neck, seal reliably and look right in the hand. Test a sample by filling, closing and shaking, then leaving a bottle on its side for days.

Labels need the correct paper or film for a chilled, damp or sweaty bottle. They also need the right adhesive. Order test labels and apply them to filled, cold bottles. Mandatory label text differs by country and by Indian state, so confirm it with the regulator before you print thousands. Reprints after an error are one of the most avoidable losses in a launch. See gin distillery licensing steps for how label approval fits in.

Minimums, lead times and cash

A supplier may only sell glass by the pallet and labels in a minimum run. Your first order can therefore be larger than your first batch needs. That stock is cash locked in boxes.

Lead times matter as much. Custom glass can take a long time to produce. Printed cartons, special closures and foil work add their own waits. Ask each supplier for a written lead time, then add a buffer. A launch date set before the packaging dates are known is a guess.

A budgeting method

Build a table with one row per item and these columns: unit price, minimum order, lead time, spare allowance for breakage, total cash for the first order and cost per filled bottle at your planned volume. Add the cost of design, artwork and proofing.

An illustration with hypothetical round numbers: glass 12, closure 3 and label with carton 6 gives 21 per bottle in dry goods. If the minimum glass order is a pallet that exceeds your first batch, the cash out is larger than 21 times the bottles in your first run. Put that in your cash flow. The full sum sits in working out the cost of a bottle.

Design with the filling line in mind

If you contract your filling, ask the filler what bottles, closures and label sizes their line handles. A bottle that is lovely but cannot run on the line costs time and money. If you fill by hand at first, think about what happens when volume grows. Design for the fill you will do in two years, not just in month one.

Freight, storage and supplier checks

Glass is heavy and fragile. Freight inward from the glassworks, storage space for pallets and handling on arrival all cost money. They grow with your order size. Bottles stored in a hot, damp room can damage cartons and labels before they are used.

Plan storage for dry goods and finished stock separately. Keep paper goods off the floor and out of humidity. In a hot climate, a warm store curls labels and weakens glue. Count the space in your premises plan, because a small distillery can fill up with pallets faster than with gin.

Ask packaging suppliers for samples from the production run and not just a showroom piece. Ask how they handle a faulty delivery, how they pack to prevent chips and how consistent their glass thickness is from lot to lot. A cheap supplier that delivers uneven bottles will cost you downtime on the filling line.

Sustainability without slogans

Lighter glass, recycled content and refills can cut cost and waste, but check any claim you make about them. Say only what you can show. A recyclable bottle with a closure that blocks recycling is a claim waiting to be questioned.

Common questions

Is packaging more expensive than the gin?

It can be, especially for premium bottles at low volume. Cost both from real quotes.

Should I use a custom bottle?

Only if you can afford the mould, the minimum order and the wait. A stock bottle with a distinctive label is a safer start.

How much breakage should I allow?

Track it on your first runs and use your own figure. Do not copy someone else's.

When should I print labels?

After the label text is confirmed with the regulator and tested on filled, cold bottles.