SAN ANTONIO – It’s been a growing problem since the start of the pandemic. Local brewers can’t get their hands on enough aluminum for their cans.
The drafts at Alamo Beer Company were flowing just like any Saturday.
“People are beginning to go out because that was one of the catalysts that caused this problem,” Jaime Jurado, chief operating officer for Alamo Beer Company, said.
In 2020, that problem was just beginning.
More people were drinking at home instead of their favorite breweries, and the demand for cans was outpacing the supply.
Unfortunately, two years later, it’s still happening.
“It’s gotten harder. It’s gotten a lot tougher,” Jurado said.
Jurado says the problem won’t let up until 2024 at the earliest.
“We’re having to get really resourceful,” he said.
One problem for little breweries across the state is that major can suppliers are now requiring brewers to order a million cans at a time rather than the previous 200,000.
“That’s of one label, one product, and they’ll no longer warehouse them for you,” Jurado said.
The problem got worse when Russia invaded Ukraine. S&P Global reports Russian based Rusal is one of the largest aluminum producers in the world.
“Our prices have gone up 27 percent up until the Ukraine incursion. We’re expecting prices to go up as much as 60 percent on where they were a year ago,” he said.
They try to drink the costs as much as possible but their small operation will be forced to put some of the burdens on customers.
“Ultimately we will probably pass on some point. The exact size of the increase we’re getting,” Jurado said.
He explained they’re getting creative with the cans and labels they’re using, and luckily they’re also able to bottle their beer.
“We just try to look forward, maintain our growth, but also know that there’s little we can do to negotiate better pricing. We’re just lucky to get what we need,” he said.
As of Saturday, the price of aluminum has gone up .89% since Russia invaded Ukraine, according to Markets Insider.
Right now, one kilogram or about 2.2 pounds of aluminum costs $3.49.