KANSAS CITY, Mo. — A Kansas City brewery is being forced to get creative and change business models due to an aluminum can shortage.
Boulevard Brewing Company said prices for aluminum cans have gone up substantially. They estimate a 25% increase in cost.
“It’s really changed the game for us. We used to spend so much more of our time on marketing. And creating new beers and seltzers, which we still do. It’s become a real challenge for us logistically because there’s been so many changes driven by the aluminum can supply,” said Bobby Dykstra, vice president of Boulevard sales.
Dykstra said the current shortage has led to manufacturers setting maximum and minimum limits on the amount of cans companies like Boulevard can order. That has forced Boulevard to relabel cans to be able to keep up with demand.
“If we have to order more cans than we need because of those minimums, we will take some cans and wrap them with a pressure sensitive label,” Dykstra explained. “So we can make more use out of the cans that we have to purchase.”
Prices for raw materials like wheat, barely, fruit syrup and malt used to make Boulevard’s beer have also gone up noticeably, but because they are a bigger company, Dykstra said Boulevard is able to offset the costs.
“We have such a great beer community and all around the country, but it is a big challenge for smaller, midsize breweries,” Dykstra said. “We are a large regional brewery, so it is going to be difficult for smaller breweries to acquire cans.”
Boulevard said prices for their products will be going up, but at this time, it’s still unclear which beer products will see the price increase.
The Brewers Association released data in the Year-in-Beer report predicting that in 2022, comparable craft production will exceed 2019 levels once again, sales will hit all-time highs at brewers, but inflation will lead to a hike in average beer prices.
“More work to rebuild growth and improve the industry remains for 2022, but 2021 showed progress on that journey," said Bart Watson, the chief economist with the Brewers Association.
The Brewers Association said the shortage of glass is being felt mostly by the spirits industry and released a report this month stating American glass makers won’t be taking on new customers until 2023.
“Consumers are going to see some price impact. It’s hard to say what packages and what markets,” Dykstra said.”But really, you will see beer come up in general. It won’t be as much as you’re seeing other consumer items, it will come up somewhere between 5 to 7% in general.”
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