Ongoing disruptions to breweries’ supply of carbon dioxide have made national news on the heels of a decision by Massachusetts-based Night Shift Brewing to outsource most beer production in part because it was unable to source the gas needed to carbonate its beer. Combined with higher costs breweries are already paying for items like aluminum, malt, and packaging materials, the burden of having less CO2, paying more for it, or not being able to carbonate and sell as much beer as planned represents a crisis for breweries’ profit margins.
As consumers face higher costs for nearly everything they buy, there have been reports of shoppers trading down to cheaper brands in different food and beverage categories, including beer. But not all beer makers are seeing a wholesale switch to economy brands.
On July 13, the top story on The New York Times’ homepage wasn’t about the war in Ukraine, the January 6 Committee hearings, or President Biden’s diplomatic trip to the Middle East. It’s about inflation, which rose to 9.1% in June, its highest rate since 1981.
The National Beer Wholesalers Association (NBWA) recently released the Beer Purchasers’ Index (BPI) for December 2021. This December’s total index reading of 71 is the highest ever recorded for a December survey. Continued supply chain challenges combined with planned/expected price increases in 2022 are driving higher index readings as distributors and retailers seek to build their inventories heading into the new year.
The Spoetzl Brewery in Shiner, Texas, craft-brewer of the iconic Shiner Bock, announced a $100,000 contribution to the American Red Cross to support relief efforts in those areas most impacted by the deadly and destructive, late-season tornado outbreak across portions of the Southern U.S. and Ohio Valley on December 10th and 11th.
By investing in innovation and committing to expanding its presence in Milwaukee and Wisconsin, Minneapolis-headquartered Indeed Brewing Company grew its total production to 17.5K barrels sold in 2021, up more than 20% in 2020 and up 38% from 2019.
Ball Corp (BLL)., one of the world’s largest suppliers of aluminum cans, is sending shockwaves throughout the craft beer world after lifting the minimum number of cans certain producers must order and saying it will raise prices.
Today, Rick continues to head up Brewery Finance and combine his vocation with his avocation on behalf of America’s craft beer makers. Brewery Finance has now funded nearly 1,000 craft projects and helped artisan-style beverage makers secure more than $55 million in funding to fuel their growth, success and dreams.