PHOENIX — Arizona is home to more than 40 craft breweries - all small business owners and entrepreneurs offering their own flavor in the world of beer.
After surviving the lockdown from the global pandemic, craft breweries are being hit with a new challenge: a shortage in printed aluminum cans. Breweries across the state are preparing to make hard choices about how they move forward.
Genesis of the shortage
“You have to remember, every brewery that relied on customers come in during the pandemic switch to cans to be able to support to-go [orders],” Rob Fullmer, the Executive Director of Arizona Craft Brewers Guild, explained.
That sudden demand, coupled with the effects of the aluminum tariffs first imposed under the Trump administration and upheld by President Joe Biden have all put a heavy strain on aluminum manufacturers.
In turn, manufacturers have reportedly placed a minimum order for painted cans like what is generally found on store shelves. Pre-pandemic, local brewers could place orders of half truckloads, or 100,000 cans, printed for a particular flavor, style, or brand of beer.
Now, the Arizona Craft Brewers Guild says the minimum order is five truckloads or 1 million cans. For many Arizona Breweries, that’s about equal to their entire annual output of beer.
Looking at other options
“Breweries are being forced into the secondary market,” Fullmer explained. “They won't be able to get painted cans. They will have to switch to paper labels which are less desirable for retailers. So, there's a chance that they would get pushed off the shelves. Also, vinyl wrapped cans, that's going to increase the price.”
Fullmer explained that a painted can costs around $0.13 per can, while paper-labeled or vinyl-wrapped cans are closer to $.30 per can.
That added expense can only be covered by local breweries so long before customers have to start paying more, or breweries discontinue selling various flavors of canned beer.
Skipping the can
Fullmer hopes the supply-demand cycle will even out by mid-2022. In the meantime, to help local breweries succeed in this turbulent market, he suggests skipping the can altogether.
“I think if you're making a choice with your dollars, the most effective use of your dollar to support our breweries is to go directly into a brewery and enjoy a draft beer,” Fullmer said. “Hopefully we can get over that hump and you can continue to have the best of both worlds; having a draft in a lively and fun brewery and then take something to-go.”
The Aluminum Association, an industry group that represents manufacturers noted in a statement to USA Today that there is not a shortage of raw material, only manufactured cans. Citing the sudden demand during the pandemic and the demand from consumers moving away from plastic bottles.
They said in part:
“Many new beverages are coming to market in cans, and other long-standing can customers are moving away from plastic bottles due to ongoing environmental concerns around plastic pollution. Consumers also appear to be favoring the portability and storability of cans as they spend more time at home.”
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