British Columbia Sun

Wednesday, December 8, 2021

Supply chain detains may cause paying more for craft beer and wine

Key points: 

  • Raised prices may have to be passed on to customers, alert some businesses. 
  • Atkins states he’s faced with detains in the conveyance of the grain he utilizes as well as difficulty finding the cans beer is filled in. 

Supply chain delays may result in increased costs: 

Canadians might soon be paying more for several of their preferred alcoholic drinks. 

Shipping detains and backlogs at ports around the globe are generating challenges for craft breweries and wineries, which are grappling to get everything from wrapping materials, such as cardboard and bottles, to malt and other elements for their product. 

The supply chain difficulties, in the beginning, prompted and then aggravated by the coronavirus outbreak, have caused rising prices for the goods and help that go in producing their products, and some businesses state they will have to pass those on to the customer. 

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Supply chains globally are a mess, and the beer and winery supply chains are not exempt from this,” said Fraser Johnson, a supply chain professional from the Richard Ivey Business School at Western University in London, Ont. 

For instance, Johnson stated, the so-called spot rate that delivery firms charge to shift a load from China to the western US has gone from $2000 US before the outbreak to as high as $20000. According to Freightos Data, it is hanging around $15000 presently. 

Johnson is covering that, over time, rates for beer, wine and spirits will surge as a result and suspects customers could see scarcities of several products. 

“It doesn’t mean that … we’re going to run out of beer and wine. But I think you can expect that some of your favourite products might not necessarily be readily available all the time,” Johnson declared. Source – cbc.ca

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