Aluminium can shortage worries beverage and pet food packaging sectors

In the ever-expanding beverage sector, the popularity of aluminium cans is increasing every day. With increased competition and decreased supply, due to shortage sparked by the COVID-19 epidemic, local breweries are the mostly affected. Since 2012, Great Rhythm Brewing Company has been delivering craft beer to New Hampshire residents in kegs and aluminium cans.

When large can suppliers dropped tiny craft beer producers, it increased manufacturing costs. The impact on large beverage companies is substantially smaller. With the increase in dog and cat adoptions, competition is increasing across the board, not just in the beverage aisle. For the time being, brewers are attempting to get around the scarcity.

The scarcity has been dubbed the "can-demic" by some.

“It is a great package, for beer, it helps the beer stay fresh and not get light-struck so it’s no wonder why we turned to the package. It’s also really friendly to ship,” said Scott Thornton, of Great Rhythm Brewing Company.

When some national suppliers increased buy minimums to the point where they were no longer affordable, smaller businesses turned to third-party sellers. Beer demand is increasing, but meeting it might be difficult. Third-party vendors are assisting, but can costs have nearly doubled since the outbreak.

“With their capital, they're able to forecast out and place those orders well in advance and carry the supply. With that, you've now seen a spike in pet food production which was typically something that wasn't really competitive on the aluminum marketplace” said Kevin Daigle, president of the New Hampshire Grocers Association.

 “We're obviously limited with how many we can hold, so things like that five truck limit minimum in a space like Portsmouth is really tough to warehouse,” added Thornton.