August 18, 2022
Issues have been set up to make Kraft beer the most expensive in the United States

Issues have been set up to make Kraft beer the most expensive in the United States

A Craft beer It can be very expensive United States. Paul, one of the world’s largest suppliers of aluminum cans, is expected to affect the overall craft beer world after raising the minimum number of cans to be ordered by specific manufacturers and raising prices.

The company said it now needs to order less than five trucks (approximately 1.02 million cans) for each of its beverages from January 1, including non-contract customers – several small distilleries. The minimum number for a previous purchase is one truck.

In addition, Paul writes that starting in 2022, surplus cans from these customers will no longer be stored in its warehouses, and for some of these customers the price of the can will increase by almost 50%. Distilleries.

The news has prompted many small and regional breweries to rush to preserve the cans and create fears about higher costs, reduced beers and higher prices for consumers.

“I see this as an economic assassination for some, and of course most small breweries will have to significantly raise prices or reconsider their entire models,” said Garrett Marrero, chairman and co-founder of Maui Brewing in Hawaii.

The craft beer industry has already been hit hard by the closure of restaurants and taverns due to the pressure International spread, Inflationary pressures, Shortages and other supply chain disruptions may occur.

Then, a week ago, news of the milk reached the inbox of hundreds of Kraft distilleries across the country, according to the Brewers Association, a trade organization representing small, independent breweries. Denver Westward was the first to report the minimum purchase price of the ball.

In letters, copies of it were provided CNN Business, Paul wrote that demand for aluminum cans continues to exceed supply.

“Milk is making investments to bring more potential online, meanwhile, we will be in a more restricted distribution environment in the future,” the letter said. “This environment makes it difficult to provide the quality experience our customers expect from the ball, and we are making some changes in how we do business to fix it.”

In six more weeks New Year, Bob Pease, president of the Brewers’ Association, said hundreds of craft brewers could not buy their pre-printed cans directly from the ball, but instead had to protect one of the most important components of their business from new sources.

“It’s still new, so we’re still trying to gather information from our affected members,” Bees said. CNN Business.

Beas said the Brewers’ Association is evaluating its options and considering contacting lawmakers, and hopes to talk to Ball executives, a longtime member of the association.

On Friday (26), Beas said he had a response from the ball’s senior leadership, and the two sides are scheduled to meet in December to discuss the latest changes.

A company spokesman said Paul had not completely abandoned the craft beer business CNN Business.

“The new model will increase our overall performance and allow our contracted customers to produce more cans, including Kraft Brewers,” Paul Spokesman Scott McCarthy wrote in an email.

McCarthy added that Paul was building five plants in the United States to produce more cans and that “every year, we assess supply and demand and continue to invest where it makes sense.”

As potential solutions for customers who could not reach lower levels, Paul provided contact information for four distributors, who could take small orders, deliver storage and offer labeling options such as adhesives and compress wrap.

“This will force us to close”

When Abslop Brewing was started in Boulder, Colorado in 2008, it was one of the few craft distilleries to package beer exclusively in aluminum cans.

“My first call asking for cans was at the ball,” said co-founder Matt Cutter CNN Business. “Well, you can buy a truck,” they said.

At the time, this was not possible for Upslob, which received initial funding from a second mortgage on Cutter’s home. But a few years later, when Apslop’s snowmelt beer is consumed across the mountain west, it’s definitely possible.

“The ball kept knocking on our door,” he said.

Paul, a Colorado-based company, owned a can factory at the end of the highway and provided services such as warehouses and cheap shipping. Upslob, which has been buying milk cans in trucks since 2014, now feels abandoned.

Cutter fears that the extra costs of raw materials, storage and working with new distributors – six packs sold in stores next spring will be as expensive as $ 1 to $ 2.

In the end, he said, these higher costs would not be sustainable for smaller companies. “As Kraft Brewers, we don’t stop consumers here,” he said. “It simply came to our notice then. This will force us to close.

In Pueblo, Colorado, he was one of the co-founders of Walter Browing Co., desperately trying to figure out what the ball’s brewery meant.

Walter Brewing has purchased cans for its Walters Original Pilsner and Walters Pueblo Chili beers from ball-buying groups and directly from the company. “It will take us more than a year [um caminhão]Said Andy Sanchez, one of Walter Broing’s co-owners.

The five new truck loads required are not questionable.

“With six weeks’ notice, there’s a lot to digest in such a short time,” Sanchez said. “It would be important for all small breweries to reconsider the milk route and think of a way to mitigate short-term impacts.”

Maui Brewing, due to its operations in Hawaii and close ties with the dairy industry there, should be relatively isolated from major disruptions, Marrero said. However, he fears that distilleries in the area and Maui Brewing’s efforts to expand production there will face problems.

He worries that breweries that cannot afford the cost of switching suppliers will be forced to change, close or merge operations. He also expressed fears that this could lead to greater use of less stable materials such as plastic labels.

“This will create a paradigm shift in the progress of Kraft Beer,” he said.

* (Translated text. Click here Original, read in English)