'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
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Which foods have the most plastics? You may be surprised
'How much plastic will you have for dinner, sir? And you, ma'am?' While that may seem like a line from a satirical skit on Saturday Night Live, research is showing it's much too close to reality.
opinion I've been a criminal attorney for decades. Here's what I think about the case against Trump
Joey Jackson, a criminal defence attorney and a legal analyst for CNN, outlines what he thinks about the criminal case against Donald Trump in the 'hush money trial.'
$3.8M home in B.C.'s Okanagan has steel shell for extra wildfire protection
A home in B.C.'s Okanagan that features a weathering steel shell designed to provide some protection against wildfires has been listed for sale at $3.8 million.
Diver pinned under water by an alligator figured he had choice. Lose his arm or lose his life
An alligator attacked a diver on April 15 as he surfaced from his dive, nearly out of air. His tank emptied with the gator's jaws crushing the arm he put up in defence.
Psychologist becomes first person in Peru to die by euthanasia after fighting in court for years
A Peruvian psychologist who suffered from an incurable disease that weakened her muscles and had her confined to her bed for several years, died by euthanasia, her lawyer said Monday, becoming the first person in the country to obtain the right to die with medical assistance.
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
Celebrity designer sentenced to 18 months in prison for smuggling crocodile handbags
A leading fashion designer whose accessories were used by celebrities from Britney Spears to the cast of the 'Sex and the City' TV series was sentenced Monday to 18 months in prison after pleading guilty in Miami federal court on charges of smuggling crocodile handbags from her native Colombia.
Wildfire leads to evacuation order issued for northeast Alberta community
An evacuation order was issued on Monday afternoon for homes in the area of Cold Lake First Nation.