A perfect storm is brewing for beer producers in the form of short supply vs. high demand when it comes to packaging their products.
Manufacturers of aluminum cans used for canning beer and soft drinks are in overdrive trying to keep pace with increased demand. A combination of factors has sent the demand for cans soaring. A major factor is increased beverage consumption at home, rather than at restaurants which are causing a back up for breweries.
In the past, a larger portion of beer and beverage sales went into kegs for distribution, now with changes forced upon the supply chain by COVID-19, breweries are having to find ways to quickly adapt to the changing market.
In a recent story on WMYA MyTV40, Center for the Study of Free Enterprise Director Edward Lopez said that although aluminum is not in short supply, the can manufacturing process has been impacted, causing the supply-chain backup.
“Markets are trying to re-allocate supplies of goods and services where they’re in the highest demand. So, just like we saw with previous shortages in the pandemic, this one’s likely to be a short-run disruption.”
Lopez said with demand up, aluminum prices are up. He said that puts pressure on breweries to decide which beers to can and pressures consumers, who may make other choices if prices of canned beverages increase.
Waynesville’s Frog Level Brewing is one of those feeling the pinch, with can supplies taking about twice as long as usual to arrive.
Read the full story here: http://my40.tv/news/local/aluminum-can-shortage-due-to-covid-impacting-local-breweries