National media got hold of a big craft-beer story recently—and no, it wasn’t another piece on the rapid growth of the craft beer industry.
It was related to that growth, however: this story spotlighted the can shortage that is causing some breweries to struggle with distributing their beer.
The New York Times quoted Brewers Association chief economist Bart Watson: “This has proven to be a real challenge for members that have built their business model around getting these cans.”
The story pointed out that it has been taking longer for craft breweries to receive their orders of cans, and also spotlighted one craft brewer whose large order of cans allowed him to lend the vessels to other craft brewers who were caught short.
The current can shortage has been some time coming.
The can shortage has been particularly intense for 16-oz cans, which craft brewers often turn to in order to differentiate themselves from Big Beer, which uses 12-oz cans. But craft brewers may not wish to change to the more readily available 12-oz can size, since that would require redesigning the label to fit the different size can—and applying for approval of the label all over again, a process that can drag on. And a switch to glass bottles would not only cause that same type of label redesign problem, it would also probably cost the brewery more, since bottles tend to be more expensive than cans.
The can shortage has been some time coming. In the early days of 2015, the National Beer Wholesalers Association pointed out that the can segment of craft beer packaging had grown more than 30 million cases and gained nearly 1 share point of total volumes from 2013 to the end of 2014.
Packaging cost and availability can have a tremendous impact on a craft brewery’s distribution, and in turn can impact its revenue and its craft brewery insurance needs.
If your craft brewery has been impacted by the can shortage, you may want to consider alternative packaging and distribution methods—and be sure to talk to your insurance agent to see if the shortage’s impact on your brewery has led to a change in your craft brewery insurance needs.
For more than 25 years, Beall Financial and Insurance Services, Inc., has been helping corporations and individuals protect their most important assets. The agency’s client base covers a spectrum of niche businesses, such as craft breweries, that require specialized insurance packages and knowledge. With California offices in Redlands and Newport Beach, Beall Financial and Insurance Services serves clients nationwide.
