Beer Shortage, Incoming!?!?
Supply. Chain. Issues. Three words that have recently ruined every good thing we've got out there to enjoy. One of those things, beer, could be the next hit by those dreaded words. Here's why.
Supply chain issues are currently causing havoc in the aluminum can and carbon dioxide areas. In addition some brewers have said rising prices and transportation are also impacting their bottom line; not only, the price to produce and ship, but also to bring in ingredients to make the beer, including CO2.
According to reports from the Daily Mail; the US faces the beer shortage after, get this, an extinct Mississippi volcano contaminated the country's largest CO2 reserve. The extinct volcano, the Jackson Dome, has provided carbon dioxide to the food industry since 1977. In recent months the CO2 supply has become naturally contaminated due to raw gas, meaning it cannot be used in food. CO2 can become contaminated by compounds, such as oil and grease vapor, rust and pipe scale, and plasticizer compounds; which are commonly added to polymers such as plastics and rubber. This shortage alone could see the beverage sector quadruple prices for consumers. Yup, 4 times more for that next can of bud or miller. Yikes.
Not only does the lack of carbon dioxide make beer more expensive, as supply and demand issues rise, but the price of aluminum has also increased. Current inflation has pushed aluminum can prices up by 20 percent. In addition, malt is up 30 percent and shipping 50 percent, while labor costs have increased by 20 percent.
When combining these factors, consumers will likely see the price of their favorite beer steadily increase as well. According to the data, the average cost of 16 ounces of beer has gone from $1.50 in April 2020 to $1.68 in September 2022, which amounts almost an 11% increase in the retail price. But hey, at least you don't live in Australia, where beer is projected to hit $15 a pint. Double Yikes!
Experts say all these factors combined could result in fewer varieties of beer being available. Keep your eye out for rising prices on your favorite brews, and maybe stock up on a few of your favorites while they are available; supplies could become limited!