'Everything is delayed': Supply chain backlog leads to issues for local breweries
Global shipping delays and port backlogs are impacting several local Regina breweries.
Mark Heise, president and CEO of Rebellion Brewing, said supply chain issues are making it more challenging to get their beer to shelves lately.
“Whether it’s getting our packaging, whether it’s cardboard or aluminum cans, whether it’s the raw ingredients such as barley, hops or fruit. Everything is delayed,” Heise said.
As a result, Rebellion has been forced to delay several product launches this fall.
“Say we’re getting some special, exotic, tropical fruit from Asia. We would pay for it and we would know that it would be here in roughly two weeks. Well, instead, it might take three to six months (now),” he said. “That’s pretty tough to plan a beer release around.”
Furthermore, Heise said this year’s harvest was “not good at all” for barley, which is one of the main ingredients in beer.
“The suppliers that we buy from are sending us almost weekly updates, continuing to tell us that the price is going up and the quality is going down,” Heise said.
To stay ahead of the packaging material shortages, Rebellion purchased a six-month supply of cans and is warehousing them.
“So, we’re putting out a lot of cash that we don’t necessarily have and we’re paying storage fees to store cans, to make sure we don’t run out,” he said.
For Bushwakker Brewpub, it’s the same issue but with different materials.
“Getting enough glass bottles, as well as two-litre plastic bottles for our beer. So, the supply chain is kind of hit and miss and the prices are definitely going up,” said Grant Frew, bar manager at Bushwakker Brewpub.
Frew said their shortages extend into the kitchen as well.
“Produce and meats and dairy, everything is going up (in price),” Frew said. “But, the unusual thing is, things like portion cups and take-out containers, they’re very difficult to find and again those prices are going up.”
According to Jason Childs, University of Regina associate professor of economics, these supply chain issues are connected to COVID-19. Industries that shrank during the pandemic are now trying to reopen, and therefore, demanding inventory at the same time.
“We’re ramping back up, and as shipping starts to return to its normal volumes, we’re seeing this bunch try to go through at the same time. The transportation networks just don’t have the excess capacity to push all that stuff through at once,” said Childs.
Childs said he doesn’t see this ending anytime soon, so he said breweries may need to focus on sourcing what they can locally, or try other options.
“Kegs are going to become more of a popular item. You’re going to see different ways of delivering product,” he said.
Similarly to increased food costs leading to higher restaurant prices, the increased cost of packaging materials will likely be passed along to the customer, Childs said.
Heading into the holiday season, Heise said he just asks that people be understanding of the situation when shopping for their favourite items.
“Planning ahead is probably a good idea at this point,” he said. “And if products are out of stock, just please be patient with retailers and staff. We’re all really trying our best.”
CTVNews.ca Top Stories
DEVELOPING Slovakia's populist prime minister shot in assassination attempt, shocking Europe before elections
Slovakia's populist prime minister, Robert Fico, was shot multiple times and gravely wounded Wednesday after a political event in an attempted assassination that shocked the small country and reverberated across Europe.
Transport Canada's UFO 'lead' planned to meet with U.S. intel officials, called info requests a 'wild goose chase'
Canada's transportation department had a UFO 'lead' who tried to 'quell' media interest and planned to meet with U.S. intelligence officials.
'Very expensive lunch': Sask. driver handed a cell phone ticket for using points app in McDonald's drive-thru
A warning from a Saskatoon driver about using your fast-food app while in the drive-thru line — a trip to get some free lunch cost him a lot more than he bargained for.
'The Fly' has become notorious in France after a brazen escape. What's his criminal history?
A prisoner nicknamed “The Fly” has become notorious in France overnight after a daring and bloody escape from a prison convoy in Normandy that left two guards dead.
BREAKING Ontario's 'Crypto King' Aiden Pleterski arrested
Aiden Pleterski, the self-proclaimed 'crypto king' from Whitby, Ont., has been arrested in Durham Region after allegedly running a Ponzi scheme worth more than $40 million.
Barge hits a bridge in Texas, damaging the structure and causing an oil spill
A barge slammed into a bridge pillar in Galveston, Texas, on Wednesday, spilling oil into surrounding waters and closing the only road to a smaller and separate island that is home to a university, officials said. There were no immediate reports of injuries.
Person responsible for 1996 drugging of 'Titanic' crew likely not a local: Halifax police
Halifax Regional Police believe a non-resident could be responsible for the infamous drugging of numerous crew members of the 'Titanic' movie with a hallucinogenic in 1996.
Latest updates on the biggest wildfires burning in Canada
Thousands of people in Western Canada remain displaced from their homes as wildfires threaten their communities, triggering evacuation orders and alerts.
OPINION If you think you can’t focus for long, you’re right: Sandee LaMotte
Regaining your focus requires you to be mindful of how you are using technology -- a daunting task if you consider the average American spends at least 10 hours a day on screens.