Now, the lockdown has claimed its latest victim: aluminum cans. Aluminum was in high demand even before the pandemic, as many beverage companies were making the switch from plastic to the more environmentally-friendly metal. "The can industry is working 24/7 on meeting the unprecedented demand," said Robert Budway, president of the Can Manufacturers Institute, the industry's trade association. (1-7-21) coronavirus and changing habits related to it, American craft brewers were already in trouble. Here's an apparent pandemic side effect you might not have imagined: a severe shortage of aluminum beverage cans. Aluminum can shortage means your favorite soda may be hard to find. "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. In some cases, beverage makers suspended output of products that sell in low volumes, so they can focus on their bestsellers. In particular, the turnaround time for shrink-sleeve cans, in which plastic labels are shrink-wrapped onto containers, has grown to 4 to 5 weeks from 4 to 5 days and the printed cans have doubled in price, said Chad Heath, vice president of sales and marketing for Karl Strauss Brewing, the 31-year-old San Diego brewery known for beers such as Red Trolley Ale and Boat Shoes Hazy IPA. San Francisco (CNN Business) A shortage of one of the most mundane items in daily life -- the humble aluminum can -- means beer fans are likely to … And while can manufacturers try to keep up, it’s impacting local companies, like Fulton Brewing. “Beverages in convenient take-home packages like aluminum cans are particularly popular right now, and beverage company employees are doing all they can to make sure store shelves remain fully stocked," William Dermody Jr., the ABA's vice president for media and public affairs, said in an email. A shortage of aluminum cans is crimping supplies of certain drinks, industry officials said. "From what we can piece together, everyone is now having issues meeting demand, and there is fear of lost business to wine and spirits," analysts Robert Ottenstein and Eric Serotta wrote. According to a recent article on CNN Business, an aluminum can shortage is causing some beer and soda brands to be out of stock or to have to cut back on their product offerings. How this Austin brewery is getting creative with its space during the pandemic, This gym is actually opening studios during the pandemic, How holiday spirit is surging despite the Covid-19 pandemic, Macy's unveils holiday window display with gratitude theme, It's official: Black Friday is irrelevant, Party City CEO: Consumers still want to celebrate together, Justin Bieber's footwear collaboration overwhelms site, How masks are reshaping the face of the retail economy, Dollar General's business is booming. Oh Great—Now There's an Aluminum Can Shortage, Too Americans are drinking at home more, and canned beverage companies are having a hard time keeping up with demand. COVID-19 ushered in an "unprecedented surge in demand" and "short supply" of certain canned drinks, Robinson said in an email. National aluminum can shortage There's an unexpected shortage in aluminum cans as a result of the COVID-19 pandemic. There’s no shortage of aluminum, but aluminum cans, specifically. Due to the COVID-19 pandemic, more and more people are opting for drinks in cans. Another pandemic-related supply chain issue to hit the shelves is a national can shortage that is affecting both the food and beverage industries. Beverages. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. Ball spokesperson Renee Robinson said the company experienced increasing demand for aluminum cans before COVID-19 from a surge of interest in hard seltzer and sparkling water. All rights reserved. Drink Beer Shortage The U.S. has been facing an aluminum can shortage caused by the pandemic for months, and local breweries are still being impacted. Beverage companies have been hit with a shortage of aluminum cans as soft drink and beer consumption has shifted from restaurants to homes amid the coronavirus pandemic. A nationwide shortage of aluminum cans has sent breweries into a frenzy.. Beer-makers such as D.G. The shortage … With thousands of Americans opting to crack open a can at home, rather than inside a bar or restaurant, beverage companies are seeing a remarkable shortage of one of their most important supplies — aluminum cans. He verified there is an aluminum can shortage, saying consumers are turning to cans more now than ever before. Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey. Karl Strauss has whittled down the number of beers it typically makes, putting the pause on specialty releases and seasonal beers. Between the coronavirus pandemic, the surge in off-premise sales and more people buying beer at liquor or … “Every company that makes anything in the 12-ounce can has been challenged to some degree by the global can shortage,”’ said Chief Executive … Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Factset: FactSet Research Systems Inc.2018. SEATTLE — There’s a new shortage in America -- this time for aluminum cans -- and the COVID-19 pandemic is again to blame. Why is there an aluminum can shortage? Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Beer maker Molson Coors did this in May amid what it called an "unprecedented shortage of 12-ounce recyclable aluminum cans.". It’s impacting Washington breweries and … He verified there is an aluminum can shortage, saying consumers are turning to cans more now than ever before. In the short term, the company is working with its foreign plants to distribute cans to the North American market. By Kyler Alvord. “The big game right now is just figuring out how to get our hands on as many … Canmaker Ball Corp. will open two new plants in America by the end of 2021 and add two production lines to U.S. facilities. He acknowledged experiencing general "supply chain challenges," which have gripped a wide range of food and beverage companies. 1:03 But what's hurting more than the tariff is the can shortage. "We are working to have more stocked for you on the shelves ASAP," the company said. Are Aldi and Amazon the key? Budway says he is not afraid that aluminum cans could lose market share in the long term as a result of the current shortage. Disclaimer. Industry-Wide Aluminum Can Shortages. unbranded - Lifestyle, unbranded - Lifestyle, Money tips and advice delivered right to your inbox. Over the past several months, as consumers stocked up on various supplies, temporary shortages have plagued the market. Save better, spend better: Money tips and advice delivered right to your inbox. There's been a huge shift in drinking habits during lockdown. This is normally the busiest time of year at … Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. "This is a little bit of Covid, a little bit of market dynamics over the long run," said Lester Jones, the Wholesalers Association chief economist.. As beer and soda consumption shifts from restaurants to homes during the COVID-19 pandemic, beverage companies and canmakers are having a hard time keeping up. Molson Coors, which sells brands like Blue Moon and Coors Light, shifted production in its portfolio away from smaller, slower-moving brands as a result of the can shortage, Collins said. All rights reserved. San Francisco (CNN Business)A shortage of one of the most mundane items in daily life -- the humble aluminum can -- means beer fans are likely to find that some of their favorite brews are out of stock right now. The increased demand for canned beverages necessarily led to a corresponding increase in the demand for aluminum cans. Fulton pours drinks at their taproom and sells beer and hard seltzer in cans around the region. He says consumers are turning to cans more now than ever before. An unexpected consequence of the pandemic is a shortage of aluminum cans. People are stocking up during lockdown and many of the companies that produce these aluminum cans are finding it difficult to keep up with demand. Expect to hear more about can shortages across beverage companies.". "We are seeing extended wait times for can orders and also some of the smaller players not having orders fulfilled. Beer sold in cans accounted for 50% of all beer sold in 2010 and 60% in 2019, a 20% increase, according to the National Beer Wholesalers Association, a trade association for US beer distributors. U.S. A nationwide shortage of aluminum cans has sent breweries into a frenzy. From a report on CBS8, San Diego, owner of Serpentine Cider, Sean Harris verified there is an aluminum can shortage. "Our sales for that before COVID was about 10 … Consumers also appear to be favoring the portability and storability of cans as they spend more time at home.”, Masks required: Walmart and Sam's Club to require masks nationwide starting July 20 as COVID-19 cases rise, Nissan reveals $40,000 electric SUV: Nissan Ariya to arrive in 2021. PepsiCo referred questions to the American Beverage Association, which represents nonalcoholic-drink makers. “We understand that brands may need to use other packages temporarily,” he says, but the factors that had led the can to take market share away from plastic and glass are still at play. Aluminum is at the center of a major pandemic-fueled disruption. He did not say which products or specifically attribute the decision to a shortage of cans. To be sure, not everyone says they've been hurt by the shortages in cans. Fewer and fewer people are going out to bars and drinking draft beverages, which means an uptick in home alcohol consumption, which also means that more bottles and cans are being consumed than ever before. Aluminum can shortage: Why your grocery store is out of your favorite beverage during the pandemic Toggle header content. Most stock quote data provided by BATS. Update, August 10, 2020: Since the U.S. is already dealing with an aluminum can shortage as more people stock up on canned beverages for home drinking (rather than draft beer at bars, say), manufacturers are scrambling to ramp up production and stay ahead of rising demand. PepsiCo CEO Ramon Laguarta told analysts in a conference call Monday that the company "made some choices in our supply chain" to "eliminate the less" popular items in its lineup for now. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. An Aluminum Can Shortage Is Stretching Breweries Even Thinner Right Now The United States alone is short about 10 billion cans. You might have trouble finding Coca-Cola in a can, or other soft drinks for that matter, because of a shortage of aluminum and high demand brought on by the coronavirus pandemic. It's the capacity to produce the cans that's lacking. He declined to name specific beers, citing competitive concerns. Others have made similar moves. It's also vulnerable to crime, police say, All retail bankruptcies are not the same. All times are ET. "We’ve been working with our distributors to try to manage it, we’ve been getting as many cans as possible from our suppliers, we’ve literally scoured the globe to source more cans from countries around the world, and we’re now seeing progress on the supply of 12-ounce industry-standard cans," Molson Coors chief communication officer Adam Collins said in an emailed statement. Here's what you need to know. U.S. faces shortage of up to 8 billion meals in next 12 months, leading food bank says The can shortage is set against a backdrop of on-again, off … Much like manufacturers weren't prepared for a sudden rush of Americans buying toilet paper in the early days of the pandemic, canmakers and beverage companies weren't ready for drink consumption to go from the tap to the home. The shortage is primarily due to people staying at home and imbibing soda pop and beer in aluminum cans as opposed to going to restaurants, pubs and bars. “The aluminum beverage can manufacturing industry has seen unprecedented demand for this environmentally friendly container prior to and especially during the COVID-19 pandemic," the Aluminum Association, an industry group representing the metal's manufacturers, said in a statement. And Brooklyn Brewery is focusing on its best-selling brands rather than its newer beers, its CEO said. Don Ford explains. Demand for the can was already strong before the pandemic. "Really, the whole idea was ensuring that we had the most can supply available for our biggest brands," he said. Brewers increasingly turned to the vessel during the past 10 years. And yet, President Trump has, according to Reuters, reinstated a 10% tariff on aluminum products entering the … Yuengling & Son, Oskar Blues and Artisanal Brewing Ventures say their supplies have not been interrupted. Between the coronavirus pandemic, the surge in off-premise sales and more people buying beer at liquor or … A shortage of aluminum cans is crimping supplies of certain drinks, industry officials said. Although things like toilet paper and paper towels are easier to find now than they were back in March, shortages of some items, like aluminum … Sign up here. "There is an aluminum shortage, specifically it’s a shortage of aluminum cans.” The Wisconsin Aluminum Foundry CEO says the cause of the shortage is … Coca-Cola's main Twitter account responded to customers who couldn't find niche products such as Cherry Coke Zero and Pibb. Published on 11/2/2020 at 4:43 PM. An aluminum can shortage and tariffs are increasing the price of canned beer for breweries — and maybe consumers. Can manufacturers announced plans to build at least three factories within the next 18 months, but that won't solve the immediate supply issues. There’s an unprecedented demand for aluminum, leading to a shortage. Now, the lockdown has claimed its latest victim: aluminum cans. Can producers such as Broomfield, Colorado-based, "Can supply is a big deal," said Paul Gatza, a senior vice president for the Brewers Association, the trade association representing America's craft breweries. News. The coronavirus crisis is causing an aluminum can shortage as lockdowns accelerate demand for … "Aluminum cans are in very tight supply with so many people buying more multi-pack products to … Kohl's needs to reinvent itself. Molson Coors products are shown on November 29, 2018 in Chicago, Illinois. MINNEAPOLIS (WCCO) — It may be harder to get your favorite drink in a can. "Everyone who makes anything that goes into a 12-ounce can is being challenged to some respect," Adam Collins, Molson Coors' spokesperson, told CNN Business. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. That's partly because of the can shortage as well as increased consumer demand for brewers' biggest brands. Then came coronavirus. From soft drinks to hard seltzer, canned drinks are high in demand. , The "unprecedented demand" for cans has prompted US manufacturers to take the unusual step of importing billions of empty cans from overseas, according to the Can Manufacturers Institute. Sign up here, Walmart and Sam's Club to require masks nationwide starting July 20 as COVID-19 cases rise, Your California Privacy Rights/Privacy Policy. But with the shortage of aluminum cans and demand at an all time high, business has been out of whack. The raw material for aluminum can production is not in short supply. 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