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Quarterly Newsletter June 2021

As we approach the middle of 2021, we are seeing positive results from the vaccination rollout and slowly starting to return to a more “normal” pre-pandemic life. That said, we are also aware of the hardships that the countries where we procure our products still face. A daily reminder that Covid-19 is far from over.

Additionally, Covid-19 and the impact on logistics remains the biggest challenge to our business. We continue to face worldwide logistics problems due to many external factors. Our team is dedicated to finding the best solutions in dealing with these delays.

All of our employees will hopefully be fully vaccinated by the end of August and we are looking forward to working together in our new headquarters. For the past several months we have been working in two different teams at the office and by the end of August, we hope to be working altogether in person again. We also hope to resume our travel schedule and our team looks forward to visiting our clients and suppliers, we also look forward to welcoming visitors to our new office.

HANS VAN DER KLOOT

President | Netherlands

GLOBAL SHIPPING UPDATES

The effects of Covid-19 are unforgiving. We were expecting shipping to be in a good place after Chinese New Year – with better pricing and more availability.

Shortly after, the world was hit by the impacts of the Suez canal blockage which is now, thankfully, behind us.|

However, the effects of Covid-19 and the impact on logistics remain the biggest challenge to our business. We continue to face worldwide logistics problems due to availability and positioning of dry containers, ISO containers, slots on vessels, port congestion, labor shortage, etc. For trading as a whole, it has been challenging to bounce back and meet demand. We can assure you that we will work with you

to get through these challenging times.

NEW PRODUCTS

We wanted to highlight our best selling products – our Sugar brew (Fermented Sugar Alcohol)
and Rice Brew (Malted Rice Alcohol) for Hard Seltzers within the Ready-to-drink category.

Sasma is currently supplying to major beverage companies within Europe, the UK and the US. Within Europe and Asia we are seeing increased interest within this category and because of this orders are increasing for these base alcohol products. Hard Seltzers are set to outperform Spirits and Wine within the US which is remarkable. Hard Seltzers have a very wide demographic as they tend to be light, low in calories and refreshing. Furthermore, these base alcohols have tax benefits – lower tax rates.

According to IWSR – “Not only did RTDs post extraordinary double-digit growth in 2020, up by +26.4%, it was the only alcohol category to grow at all during the Covid crisis, resonating with consumers across all demographics. (This) category is so red-hot right now that RTD volume is projected to increase by almost +27% this year, driven largely by stupendous growth in the US, which holds nearly half (44%) of global RTD volume”

ALCOHOLS FOR HARD SELTZERS

Larger beverage companies keep investing in the Ready-to-drink category globally. We support and anticipate this trend within RTD’s as they continue to grow exponentially on a worldwide level.

Our full list of alcohols for hard seltzers:

• Fermented Sugar alcohol

• Malted Rice alcohol

• Beer alcohol

• Fermented alcohol

JAPANESE VODKA AND GIN

At Sasma we are continuously researching and developing the latest alcohols from around the world. We are seeing success with the introduction of our Japanese Gin. Working with world-famous bottlers and beverage companies.

We also now offer Japanese Vodka, a product that is relatively new in the market and now part of Sasma’s product offering.

To learn more about our best-selling products and our new products, contact us today!

RAW MATERIALS

Price increase

Market conditions are driving up the cost of many raw materials specifically sugar and corn (mais), related to our alcohol products. Our suppliers are facing pressure within the supply chain and we are seeing constraint in supply and labor shortage. These price increases are putting pressure on pricing and we are seeing price inflation.

During the recent spring harvest in France, there was a frost that affected the crops and the harvest didn’t yield as much as would normally be available; this resulted in limited availability and increased pricing. Compared to one year ago, there were too many grapes because vineyards and grape producers weren’t able to sell due to the effects of the Pandemic.

We are seeing price increases in packaging as well. HDPE plastic used to manufacture drums and IBC’s is at an all time high, the highest in over 12 years.

As always, we work together with our clients for the best available pricing.

How can we help?

Contact us today by email or phone.

Related posts

Earlier this month, I had the pleasure of speaking with the Sasma Logistics team. Meet Pim Schouten our Logisitcs Manager, and Amir Tawfik, Nicolai Koelhof, Alexandru Onica, Moon Nguyet Nguyen, and Charitha Heeren Sasma’s Logistics Operators.

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