Tuesday, May 7

Why Draft Beer Could Be America's Next Shortage

Javier Zarain

The draft or craft beer industry in the United States faces a dilemma: its sales are recovering to pre-pandemic levels; however, their profits were reduced by the high costs of raw materials and the scarcity of inputs.

The country has seen how the shelves have been emptied of certain products that have yielded to the pressures that are still exerted by supply chain problems.

From toilet paper, at the beginning of the pandemic, to computer and vehicle chips, tampons and baby formula, all these products have been scarce on the shelves and beer could be the next victim.

A complex scenario for brewers

The cocktail for brewers is made up of inflation, which leaves high costs, and problems in the supply chain, which causes shortages and also more expenses.

In particular, the brewing industry, large and small, is dealing with difficulties in obtaining carbon dioxide (CO2 ) and aluminum cans for packaging.

CO2 is used in industry to carbonate the beers, but also to clean the tanks and to prevent oxygen from filling them when they are empty.

However, this product has been difficult to get for the brewers and, when they have done it, they do it with costs that can be even double what they usually paid, according to a report by USA Today.

But it’s not the only thing , brewers are also dodging higher prices on basic ingredients like malted barley, hops, paper and even shipping costs due to volatile gas prices.

“I don’t know if I can think of a scenario where there would be no beer from a brewery, but I can understand a scenario in which there would be a limited or smaller supply, since the beer has u a short shelf life,” said Chuck Aaron, owner and founder of Jersey Girl Brewing.

Regarding cans, their prices have also had important variations that add challenges for the industry, which has sought ways to avoid raising prices to their customers.

In general terms, the inflationary rises have increased the cost of all the products, supplies and services that brewers need to manufacture the drink so loved around the world.

Although this industry is used to overcoming certain difficulties, economic disorders and inflationary pressures have led to its list of challenges more and more problems they have to solve.

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