The shortage has meant that there are longer wait times on orders of aluminum cans and that some cans have increased in price. Instead, the beer that would have been served at bars and restaurants is being sold in cans for drinkers to enjoy at home.Ĭonversely, there is more of a demand for cans of beer as some people-especially millennials-have been drinking more while stay-at-home orders and social distancing guidelines are in place.Īdditionally, Americans stocked up on cans of beer in the spring, when lockdowns and stay at home orders were first being implemented across the U.S.īrian Erhardt, chief supply chain officer at Molson Coors BeverageCo., told industry outlet Inside.Beer that in the first eight weeks of stay-at-home laws twice produced packaged beer orders at Fourth of July levels.Īside from the rise in demand and consumption of beer cans, the rising popularity of drinks like seltzer water-which is also sold in cans-means that the demand for aluminum is increasing generally. We’re dodging so many balls.Americans may be unable to get their hands on their favorite beer brands at the moment, as the coronavirus pandemic has caused an aluminum can shortage.ĭue to bars and restaurants being closed during lockdown, there is less beer currently in kegs. Just as we thought we were coming out of that, the CO2 shortage hits us out of left field. “There’s already a can shortage that’s been with us for 18 months. Corona beer isn’t making any changes to its advertising despite the name’s unfortunate similarity to the deadly coronavirus. “It would have catastrophic implications,” says Melehan, who cofounded Lifeaid in 2011. ET The brewer's Mexican imports continue to drive the entire beer market. He adds that some industry experts expect there to be “some rationing for brands at our scale and emerging brands.” 43B Today's Change (-1.13) -2.68 Current Price 234.27 Price as of November 21, 2023, 4:00 p.m. The jury accepted Constellation's argument that its license to distribute beer bearing Modelo's brand names also allows it to sell alcoholic drinks like Corona Hard Seltzer and Modelo Ranch Water. In fact, the factory had decided to breach its exclusive contract with its longtime carbon dioxide supplier to get into business with a back-up. Lifeaid Beverage CEO Orion Melehan says he first asked his contract manufacturer earlier this month to find out if they thought it would be a problem for his line of functional drinks, all carbonated. Because of that, small food and beverage businesses will likely be hit hardest. It is the last thing my members need, with the collapse of the hospitality industry.”īig producers can often recapture some of the CO2 they use with pricey machinery, but 99% of craft brewers don’t have those capabilities, while most independent beverage brands rely on contract manufacturers that are also without the means of a Pepsi or Coca-Cola “This is an issue that has come up really quickly on us. No CO2, no beer, bottom line,” adds Pease. ![]() Now that deal is the norm for most craft brewers, Pease says. Bob Pease, Brewers Association CEO, says they first started worrying about the shortage earlier this month, when a member notified the organization that its CO2 supplier had suddenly broken the contract and would only be able to deliver half of the expected order. Sales of seltzer skyrocketed, and White Claw sales alone quadrupled, from 154.8 million in 2018 to 627. The beer industry uses 14% of the CO2 produced in the country. ![]() Spindrift and White Claw declined to comment over whether they are planning for a shortage or if production will be impacted in the future. La Croix, owned by a publicly traded company, sources from a number of national suppliers and says it does not anticipate a supply issue. Which means the shortage will threaten some of the hottest parts of the $28 billion carbonated drinks market-including sparkling water and hard seltzers, which have surged in recent years amid a popularity boom. ![]() Beer, spiked seltzer and other alcoholic drinks all require CO2.
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