August 4, 2020
Kate Bernot
Photo of Denizens Brewing Co. cans. | Good Beer Hunting
THE GIST
Demand for aluminum cans, which began to rapidly increase in March when the coronavirus first shuttered bars and restaurants, has created a shortage among breweries. Now, it’s starting to impact bottom lines. The beer industry, in which estimates show canned products now account for 60-70% of sales, has seen a strain on supply and subsequent price increases before—but not on this scale.
Orders for aluminum cans from manufacturers of beer, hard seltzer, and sparkling water were already raising the specter of supply-chain issues in January. Now demand has spiked in summer (beer’s biggest sales season) and has been compounded by a huge shift to off-premise sales during the pandemic. Lindsay Boudreaux, vice president of customer success for Saxco, a food and beverage packaging supplier, says demand for cans is “through the roof.”
