Overcoming Glass Bottle Shortages
McCutcheons’ Innovative Solution To Supply Chain Disruptions
The Client:
McCutcheon’s Apple Products (McCutcheon’s), located in downtown Frederick, was founded in 1938 and has grown to over 30 full-time employees to become a modern producer of apple and fruit products. With a strong family background and a deeply rooted history of involvement and contribution to the community, McCutcheon’s has become a staple of Frederick and the Maryland food production industry. McCutcheon’s Apple Products manufactures and distributes products all over the United States and serves over 100 small businesses in the state of Maryland.
The Challenge:
Due to supply chain disruptions from the lasting effects of the COVID-19 pandemic, glass bottles became increasingly more difficult to obtain. The glass bottle shortage was a huge problem for McCutcheon’s popular line of gallon-sized containers of apple cider and juices resulting in the inability to fill customer orders and products going to waste. McCutcheon’s large volume containers of cider and juices have been a major differentiator, but the product line was becoming too expensive to continue. McCutcheon’s, like many manufacturers, was left searching for alternative solutions to be able to meet customer demand and continue offering a valuable source of income for the business.
The Solution:
In response to the supply chain issues affecting McCutcheon’s ability to procure glass bottles, Maryland MEP and the Maryland Supply Chain Resiliency Program supported McCutcheon’s to develop and implement a new product line for “Bag In Box” (BIB) products that would eliminate the need for gallon-sized glass bottles.
Results & Impacts:
McCutcheon’s initiative to develop a Bag In Box product line was a direct solution to the supply chain issues forcing them to shut down production of one of their most popular and unique products. Incorporating the Bag In Box product line reduced shipping and storage costs due to the compact nature of the packaging while also increasing the shelf life leading to more efficient use of raw materials and added value to the customer. In addition to replacing the glass gallons, McCutcheon’s will be able to offer Bag In Box cider in larger 4-gallon buckets to expand its product offerings to customers like restaurants and breweries who have requested larger packaging.
Maryland MEP and the Maryland Supply Chain Resiliency Program helped McCutcheon’s deliver a creative solution to an ongoing supply chain challenge which also created opportunities to explore new products, reduce costs, improve efficiency, and diversify revenues/customers.
Supply chain problems caused significant issues in sourcing our glass containers. Faced with shortages and rising prices, we made the decision to supplement our current products with a new product line that uses a different type of packaging. Maryland MEP was instrumental in helping us in taking the final steps to get the resources we needed to take our new BIB product line from concept to market. The team at MD MEP takes the time to get to know manufacturers in Maryland and what programs will best suit their needs. Eric helped us work through the Supply Chain Resiliency Program requirements and secure funding for the project.
