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How The World's Largest Cork Company Makes 22 Million Wine Stoppers A Day | Big Business

Introduction

Cork, a prized material harvested from the bark of cork oak trees, is a unique and valuable resource primarily sourced from the forests of Portugal. Harvesting cork requires precision and a wealth of experience; any cut that is too deep can significantly damage or even kill a tree, many of which are over 100 years old. The primary objective of the industry is to sustain these trees for as long as possible while producing high-quality cork products, including wine stoppers, a key market segment.

The Cork Industry in Portugal

More than half of the world's cork production originates from Portugal, with a significant portion attributable to a single family-owned business known as Amorim. This 150-year-old company utilizes cork in a range of products—from wine stoppers to aerospace applications. However, just two decades ago, the industry faced severe challenges when a fungus ruined the taste and aroma of millions of wine bottles, jeopardizing the entire cork market.

To mitigate future crises, strict guidelines dictate how and when cork oak trees can be harvested. The trees must be at least 25 years old and 70 cm in diameter before their bark can be harvested, which only occurs every nine years to allow sufficient time for regeneration. Workers are trained to make precise cuts, as any mistake can leave the tree vulnerable to infections.

The Harvesting Process

Harvesters, earning approximately $ 900 a week—a notable income compared to the average agricultural worker—have seen dwindling interest in this specialized profession. To combat labor shortages, in 2020, Amorim began integrating custom tools designed to facilitate harvesting while preserving tree health. A sensor-equipped saw detects humidity to prevent deep cuts, and specialized shears help lift the bark without causing damage.

Each tree is marked with a number indicating the year of its last harvest, ensuring that only once every nine years is the bark removed. Trees can live up to 250 years, with many being harvested many times, including the legendary Whistler tree, which is 240 years old.

Once harvested, the bark is transported to Amorim’s factory, where it undergoes a meticulous processing routine involving drying, boiling, and shaping for various products. The facility processes an impressive 5,000 metric tons of cork bark each month.

The History of Cork

The use of cork dates back 5,000 years; Egyptians utilized it to seal jugs in tombs while Romans adapted it for uses such as fishing nets and shoe soles. Cork gained prevalence as a wine stopper in the 1600s, especially after the introduction of stronger glass bottles. By the late 1700s, Portugal emerged as a central cork producer, with Amorim at the forefront of the industry.

Founded in 1870 by Antonio Amorim, the company transitioned from local processing to larger manufacturing, and by the 1980s, it became the leading cork supplier globally.

Challenges and Innovations

In the early 2000s, the cork industry faced a significant threat from cork taint—an issue caused by fungi in cork exposed to certain chemicals. Wine corks were increasingly replaced by alternative closures, leading to a decline in cork demand. To counter this, Amorim invested heavily in research to eliminate TCA compounds from cork. These advancements paid off, as the occurrence of TCA in cork from Amorim fell to below 1% by 2015.

The company has also pioneered innovative uses for cork byproducts, turning them into products like coasters and composite materials. Sustainability is a core principle, as Amorim has committed to planting 1.5 million new cork trees over five years to ensure the longevity of its resources.

Looking Ahead

Amorim’s cork stoppers comprise about 75% of the company’s business, but they are currently expanding into fields such as cork flooring and even aerospace applications. The lightweight and insulating properties of cork make it ideal for various industries, and the company has partnered with NASA and the European Space Agency to supply cork for aerospace projects.

As demand for cork products grows, Amorim is well-positioned to meet new challenges while promoting sustainability. The Portuguese cork industry achieved an all-time sales high of $ 1.3 billion in 2023, reflecting the successful adaptation of traditional practices to modern needs. Continued monitoring and planting of cork trees will ensure that this unique industry not only survives but thrives for generations to come.


Keywords

  • Cork
  • Cork Oak Trees
  • Portugal
  • Amorim
  • Wine Stoppers
  • Harvesting Process
  • Sustainability
  • TCA
  • Aerospace Applications

FAQ

1. What is cork and where does it come from?
Cork is the bark harvested from cork oak trees, primarily found in Portugal, which produces the majority of the world's cork.

2. How often are cork trees harvested?
Cork trees can be harvested every nine years after they reach at least 25 years of age and 70 cm in diameter.

3. What are some products made from cork?
Apart from wine stoppers, cork is used in flooring, coasters, aerospace components, and various other applications.

4. What challenges has the cork industry faced?
The industry faced significant threats from TCA, a compound that caused cork taint in wine, leading to a decline in cork usage.

5. How does Amorim ensure sustainability?
Amorim is committed to planting new cork trees, with plans to plant 1.5 million trees over the next five years to ensure the longevity of cork resources.