Overview: The brewery industry in Colorado is facing unprecedented challenges due to the surge in aluminum prices. With tariffs and global conflicts driving up the cost of this essential commodity, breweries are struggling to manage their expenses.
The Full Story
Breweries across Colorado are experiencing a perfect storm of rising costs that threaten their very existence. Aluminum is a critical component for packaging beer, but its price has skyrocketed in recent months due to tariffs and the ongoing conflict involving Iran. According to University of Denver director of supply chain management Jack Buffington, the cost of aluminum has surpassed $1 per pound, a record high.
Alyssa Hoberer, co-owner of Full Frame Beer and Coffee in Denver’s RiNo neighborhood, is feeling the pinch. Her one-year-old business has seen inventory costs surge due to rising prices for everything from hops to packaging materials.
Production & Profile
The production process at breweries across Colorado is being impacted by these rising aluminum costs. Barrels and Bottles in Golden, a 13-year-old brewery that has been open since 2009, is having to reconsider its hop suppliers due to the high cost of imports.
“We do all of our landscaping; we do all of our own weddings,” said Abby George, co-owner of Barrels and Bottles. “But with these rising costs, it’s increasingly difficult for us to keep prices steady for customers.”
Brand & Industry History
The brewery industry in Colorado has a rich history dating back to the early 20th century. However, the current challenges facing breweries are unprecedented and pose significant risks to their survival.
“We need to produce critical minerals and metals here in the United States,” said Buffington. “Number two, energy costs have to go down. Number three, we need to recycle a valuable commodity like aluminum.”
What This Means
The rising cost of aluminum poses significant challenges for breweries across Colorado. With many businesses struggling to manage their expenses, the long-term viability of these establishments is at risk.
“It’s a very difficult commodity market right now,” said Buffington. “I used to work at Coors, and [the cost of aluminum] has gone up probably fourfold since I’ve been there.”
Consumer Takeaway
The impact of rising aluminum costs on breweries in Colorado will likely be felt by consumers as well. With many businesses struggling to stay afloat, prices may increase or product offerings could decrease.
“We want to begin canning and expand distribution outside the taproom,” said Hoberer. “But I think the cost of all of that is really preventing us from doing it.”
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