Omaha breweries in distress as supply chain hiccup surges aluminium price

The growing price of aluminium cans since the beginning of the pandemic has negatively influenced the local breweries like the Brickway Brewery and Distillery in Omaha. However, in light of the current crisis due to the increased sanctions on Russia, the prices of aluminium are expected to inflate higher, majorly affecting the craft breweries.

According to Dr Peter Zhu, a supply chain specialist at the University of Nebraska Lincoln, the soaring prices of the aluminium cans during the initial stage was because most of the people were buying canned alcohol to take home rather than sitting at a bar. And currently, aluminium from Russia, the world's third-largest producer of aluminium, accounting for 6% of global output, is unavailable.

"All of our products, both our beers and our canned cocktails are in aluminum. And canned prices haven’t just gone up a little bit. They’ve gone up 50%,” said Zac Triemart, President and master distiller of Brickway Brewery & Distillery.

As of now, Brickway Brewery & Distillery is paying 15 cents for one can, which with 24 cans in a case comes to more than US$3.60 per case. Zac Triemart also highlighted that raw ingredients like glass for their spirits and oak barrels for the maturation process are also over scramble. To stay in the market, they had to price it this way.

"We’re not putting a single more cent in our pocket. We’re just trying to survive and make a reasonable margin,” added Triemart.

"Because of the ongoing sanctions because of the war, of course, Russia cannot sell this percent of aluminum to the market," stated Zhu.

The increased price of aluminium has also affected the vehicle, construction, distillery and many other businesses. They could find a new substance to utilise, according to Zhu, but that would require time and resources.

They might potentially obtain aluminium from another source, but several counties must avoid Russian airspace, which slows delivery. Bringing things via sea, according to Zhu, is likewise a lengthy procedure at the moment. And for tiny businesses like Brickway, the wait for what they require is already excessive.

"It’s generally the large national brands that get the supply first, and then it trickles down eventually to all of us small businesses. So it’s hitting the small business much harder,” commented Triemart.

"Maybe previously, people didn’t pay too much attention, but if they can try to recycle those aluminum things, it will at least help the industry,” said Zhu.