In a recent online article for The Wall Street Journal, Alistair MacDonald writes: “Here’s another reason to worry about inflation: It’s getting more expensive to make wine, beer and spirits. Some vineyards, brewers and distillers say they are absorbing those costs for now, and prices for alcoholic beverages are rising more modestly than for other consumer goods, according to government data. That might not last, analysts warn. Costs for cardboard packaging, aluminum for beer cans, labels, transportation, and energy are all going up. That is part of a wider burst of inflation hitting many industries in the US as economies recover from Covid-19 lockdowns.”
MacDonald goes on to report that: “Earlier this year, Chris Steller, at Amador & Dry Diggings Distillery, began receiving emails from suppliers warning his Californian distillery to get ready for price increases. Those costs have arrived, but for now is holding back on raising the prices of its rum, gin and whiskey.”
The article continues: “Many economists say today’s sharp inflation won’t last. The Federal Reserve has said price rises are “largely reflecting transitory factors.” But businesses and consumers are feeling them. Booze makers are facing many of the same cost pressures as most businesses, including higher energy and transport prices. The cost of moving a truckload of beer or its ingredients 600 miles has approximately doubled to about $2,000 for small and midsize breweries because of high demand and a lack of drivers, said Mitch Steele, co-founder of Atlanta-based New Realm Brewing Co. Also affecting beer costs are aluminum prices, which have increased around 70% since May 2020. The price of a can has risen from around 10 to 15 cents, depending on its size, to around 25 to 30 cents, said Mr. Steele, reflecting U.S. industry averages. The cost of labels for wines produced by Nik Weis’s winery in southern Germany, has risen 5% since before the pandemic. The time it takes to get them printed has doubled to eight weeks as printers struggle to keep up with a sudden rush of demand.”
Here at Skolnik Industries, using our stainless steel wine barrels is a great addition to your supply chain. Note that our stainless steel wine barrels are reusable, easy to clean, and recyclable at the end of their service life. Check out the full line of our Stainless Steel Wine Drums here.