'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
NEW How car thefts are impacting your insurance, even if your car isn't stolen
As the number of auto theft incidents rises in Canada, so have insurance premiums for drivers, even the ones whose vehicles aren't stolen.
B.C. mortgage broker ran $270-million Ponzi scheme, then fled Canada, bankruptcy trustee says
The trustee appointed to manage the bankruptcies of a Victoria mortgage company and its owner has concluded that they committed "numerous offences" and operated as a "massive Ponzi scheme."
opinion Trump's Republicans falling far behind in fundraising, infrastructure
In his latest column for CTVNews.ca, Washington political analyst Eric Ham explains how and why Republicans -- up and down the ballot -- are falling far behind Democrats in both fundraising and infrastructure.
Oilers rally to beat Stars, tie Western Conference Final
With the Edmonton Oilers down two goals late in the first period of Game 4, Rogers Place was quiet, fans seemingly bewildered at the early, quick scoring of the Dallas Stars and the slow start by the home team. Ryan McLeod's marker with six-and-a-half minutes in the opening frame left changed all that.
McDonald's says US$18 Big Mac meal was an 'exception' and their prices haven't risen that much
McDonald’s is fighting back against viral tweets and media reports that it says have exaggerated its price increases.
Minnesota beats Boston 3-0, wins inaugural Walter Cup as Professional Women's Hockey League champs
Minnesota won the inaugural championship of the Professional Women’s Hockey League on Wednesday night, getting 17 saves from Nicole Hensley to beat Boston 3-0 in a winner-take-all Game 5 and claim the Walter Cup.
Tessa Virtue reveals she's expecting her first child. Here's what Canadians had to say
Canadian figure-skating icon Tessa Virtue is expecting her first child, she revealed via social media Tuesday.
Canadians are eyeing moves to these cities for more affordable housing
Faced with elevated housing prices, half of Canadians in the country's largest cities are considering moving to places with more affordable housing.
Poilievre says Canadians 'fleeing' to Nicaragua, Liberals say it shows he 'doesn't have a clue'
Liberal parliamentarians are criticizing Conservative Leader Pierre Poilievre over a new video in which he promotes the idea that some Canadians are 'fleeing' Canada to live in Nicaragua because they can't afford a house in this country.