Q3 Newsletter 2024

Updated at: 30 September 2024

Welcome to our Q3 Newsletter! This quarter has been eventful, with significant developments in shipping, logistics, and market trends. In this edition, we’ll recap the key highlights from the last quarter and share exciting news about what's ahead.

We hope you find this information valuable as we continue to strive for excellence in serving your needs.

All the best, 

Team Sasma

Shipping & Logistics

This quarter has seen fluctuations in shipping and logistics pricing. We’ve referenced the latest data from Drewry to provide you with an overview of trends, including a detailed graph up to the end of September. This section will help you understand the current landscape and how it might impact your business.

Screenshot 2024-09-13 at 1.55.11 PMSource: Drewry

Q3 Market Update

Bulk Ethanol

Europe
The European grain market is experiencing a mixed outlook in Q3. Grain production is expected to dip due to adverse weather, including droughts in some areas and heavy rainfall in others, particularly impacting countries like France, Germany, and Poland. Despite the supply challenges, ethanol prices derived from these grains have remained stable, largely due to subdued demand from end-users, preventing any significant price surge.
USA
The U.S. ethanol market saw robust production during Q3, buoyed by declining corn prices, which dropped by 10% over the course of the year ​(Jewell Grain). Although ethanol prices experienced minor fluctuations due to varying gasoline demand and high domestic inventories, profitability remained solid throughout the quarter. Some concerns about overproduction, however, could pressure margins in the coming months​ (Jewell Grain).
Asia: Pakistan
In Pakistan, the ethanol market faced significant disruptions. A poor sugarcane crop led to a sharp reduction in raw material availability, forcing many distilleries to halt ethanol production​ (IndexBox). This stoppage exacerbated the supply shortage, driving up domestic ethanol prices and curtailing Pakistan’s role as a key exporter. The impact of this shortfall was felt both locally and globally, adding pressure to an already tight international supply chain ​(IndexBox)​(ISOSugar).
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Bulk Spirits in Europe, Asia, and the USA

Europe

The European bulk spirits market saw a decline in demand, particularly in the premium segment. This slowdown is partly due to economic pressures, which have reduced consumer spending on high-end products such as whiskey and gin. Rising production costs, especially for grains and energy, compounded the challenges faced by distillers as input prices outpaced demand recovery ​(IndexBox)​(ISO Sugar). Producers are adjusting to the shifting landscape by scaling back production and focusing on more cost-efficient processes.

Asia

The Asian bulk spirits market continued to grow in Q3, particularly in emerging markets such as China and India, where the demand for both premium and mass-market spirits remained strong. However, producers are also facing higher costs due to increased prices for raw materials like grains. In markets like Japan and South Korea, premium spirits are still favored, but there is growing price sensitivity among consumers. As a result, many distillers are looking at more affordable options or smaller volume packaging to maintain competitiveness ​(Future Insights)​(ISO Sugar).

USA

In the USA, the bulk spirits market experienced mixed results. While overall demand remained relatively stable, premium spirits faced softer sales, particularly in the whiskey and bourbon categories, which had seen strong growth in previous years. Rising production and transportation costs, driven by both grain prices and energy costs, have pressured margins​ (JewellGrain). However, craft distilleries and innovative product lines (e.g., flavored or ready-to-drink spirits) are helping to offset some of these declines, especially in the mid-tier market ​​(IndexBox).

Moving Forward

The bulk spirits market in Europe, Asia, and the USA will likely remain under pressure, with economic factors and consumer spending habits driving trends. Price sensitivity will be key, especially in premium categories, as producers balance cost pressures with evolving market demand​ (IndexBox)​(Jewell Grain).

Halsteren Announcement

We are excited to share that Sasma BV is expanding! We began construction on a new warehouse in Halsteren; the first foundation pile was driven on September 12th. This state-of-the-art facility is expected to be completed by the end of 2025. The new warehouse will significantly enhance our storage and distribution capabilities, allowing us to serve you even better in the future.

P220221 W-03 Sasma Halsteren met naam

Spotlight On: Agave

This quarter, we are excited to shine a spotlight on one of our key products: 100% Agave. At Sasma BV, we have ample stock of 100% Agave available in our Antwerp warehouse, ensuring that you have reliable access to this product.

Why Choose Our Agave?

  • 100% Pure Agave: Our Agave is 100% pure, making it a premium choice for a variety of applications.
  • Cocktail Perfect: Ideal for creating classic cocktails like Margaritas and Palomas, our Agave brings an authentic and rich flavor to your beverages.
  • Ready Availability: With a well-stocked inventory in Antwerp, we can meet your supply needs swiftly and efficiently.

Whether you're a beverage producer or a food manufacturer, our Agave is a top-quality ingredient that can enhance your products and delight your customers.

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2024 Trade Fair Calendar

Don’t miss out on the opportunity to connect with us in person. Here’s our trade fair schedule through the end of the year:

We look forward to seeing you there! Please contact your Sales Manager to arrange a meeting, or email us at hello@sasmabv.com.