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Rua Duzentos,26 Q 1, ; Cuiaba, Mato Grosso, Brazil
55 65 3663 2016
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66-02-5265382
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Craft brewers squeezed as aluminum goes at a premium

(collapsable)→
Tue, 30 Nov 2021 07:30:00

Nine Pin Ciderworks avoided upping prices for their boozy apple creations, but one move from an aluminum can supplier will inevitably force the company’s hand.

Ball Corporation, a global metal can manufacturer, sent an email to Nine Pin and other brewers outlining changes to their prices and practices. 

Nine Pin owner Alejandro del Peral said the email warned that Ball, who the brewery buys aluminum cans from, was raising the minimum number makers must order from one truckload to five for each drink and implementing higher prices on Jan. 1. 

CNN reported that Ball similarly announced it wouldn’t store cans from non-contracted patrons and some of those customers would experience a roughly 50 percent increase in the price-per-can. 

The jump in minimum orders means brewers who previously bought about 200,000 cans will now have to purchase nearly a million just to satisfy the minimum, Bart Watson, Chief Economist of the Brewers Association said – a ploy that will make it so very few small-time brewers can buy directly from manufacturers.

The message left members of the craft beverage industry contending with uncertainty about future supplies and robust costs. Nine Pin said the boosted minimum presented a new slew of problems to confront. 

“Our highest volume product is our signature cider. And we, in a single year, do not sell a million cans of that cider,” del Peral said. “There (are) all sorts of consequences to the alternatives in terms of our cost.”

The cider producer is weighing its options, eyeing the 2022 deadline to adjust, but all available options indicate ingesting supplementary expenses in one capacity or another.

In one scenario, Nine Pin can take its business elsewhere, most likely to a third-party distributor where it will pay more for a middle-man to supply it just the right amount of cans needed. 

A second option would be to completely change its packaged product and use a different material such as glass. Paul Leone, executive director of the New York State Brewers Association, noted there aren’t many alternatives for aluminum. Glass is too expensive and consumers are drawn to the thin metal’s convenience and recyclability. 

The third choice would be to continue with Ball, absorb the increased inventory and rent a warehouse to store extra cans. 
According to Leone, some brewers are teaming up to shore up their supply through 2022 or combine forces to meet the minimum together, which could also be feasible. Ball isn’t the only manufacturer to assert such changes and finding new suppliers in an already tight market is mounting pressure for brewers.

Del Peral said he and his team are still considering which route to take, although with every element of becoming more expensive, raising prices for cider is something they’ll definitely have to do to combat inflation. 

Leone agreed. Of the 490 craft beer brewers in the state, approximately 60 to 70 percent use aluminum cans. Yet, that’s just one industry in one state. He said the problem with aluminum cans is that they’re widely used today for everything from booze to soda, water and more.

The Ball Corporation said it is seeing an “unprecedented demand for sustainable aluminum beverage packaging” while some canned beverage items “remain in short supply.” Aluminum cans were poised for growth prior to the pandemic as companies veered away from plastic containers. The sizable home consumption during the crisis intensified calls for suppliers to produce more. 

Demand is soaring for these thin metal cans and shortages are persisting. Leone and Watson anticipate prices are likely to go up. 

“Their (brewers’) margins are already incredibly slim in terms of what they sell their beer for and what they sell packs for. So, the price will certainly get passed on to the consumer until the supply chain gets better, which is projected to be in late 2022,” he said. 

During a time when prices for almost everything are increasing, consumers are predicted to keep buying.

“The consumer’s pretty committed to the beer, paying the prices that the brewers are asking for,” Leone said. “I think the consumer understands that these breweries aren’t price gouging, they’re barely getting by in most cases.”

This story has been updated to reflect that the Nine Pin owner's last name is del Peral.

203, Sai Lakshmi Residency,3-2-167/2/14, Hyderguda R. R. Distt. Hyderabad, India, ; Hyderabad, Andhra Pradesh, India
91 40 55539004
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66 01 8896389
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81-66993-0712
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91 4339 220200
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H. No46/2159a Kalluveettil House Samajam Road Vaduthala Po, Cochin, Kerala, India
91-484-2436334
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Bul. Nikole Tesle 23 / 10, Nis, Serbia, Yugoslavia
381-18-588908
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22 Ebad Alrahman City Al Qatmia, Cairo, Cairo, Egypt
20-012-1663291
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60-03-2089-3400
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97A, Allama Iqbal Road, ; Lahore, Pakistan, Pakistan
092 42 6364719
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32 Road 425 Giza, Giza, Cairo, Haram, Egypt
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Artvin Street, Bursa, Nilufer, Turkey
90-224-4834257
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86 0431 6655889
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91-11-41329650
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84-04-2432033
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62 355 321209
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977 01 2082179
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86 577 81166038,81889350
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Pasong Buaya 1, Imus Cavite, Cavite, Cavite, Philippines
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66-53-434645
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91 591 2496753
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86 371 66511590
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90 212 5068107
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886-4-23020761
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86 768 6818412
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90-232-4616799
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Peerzada Street Rehman House Muradabad, Muradabad, Uttar Pradesh, India
91-0591-2497703
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T. M. International Co., Ltd
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B 87 Secro 65 Noida, ; Noida, Uttar Pradesh, India
91 11 25088124
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Keresteciler Sanayi Sitesi 176/9 Kazan Yolu Saray Koy, ; Ankara, Turkey
90 312 8154800
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52 Tue Tinh Street, Hanoi, Hanoi, Vietnam
84-4-2734010
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Clancy's Garden
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2575 West Elkhorn Blvd., Sacramento, California, United States
1-916-9232980
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H. No.90/F-11, Mughal Pura 1st, Prince Road,, Moradabad, Uttar Pradesh, India
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750 Dalton Ave, Cincinnati, Ohio, U. S. A., Cincinnati, Ohio, United States
1-513-2330155
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New Directions Inc.
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Irfan House, Gokul Das College Road, Tavela Street,, Moradabad, Maharashtra, India
44-1274-604351
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Muslim College Road, Moradabad, Uttar Pradesh, India
91-591-2493218
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0086-591-24856588
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Baiyang Industrial Park, Wuyi County, Jinhua City, Zhejiang Province. China
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No.1812 Room Jinmao Building,Chouzhou North Road
86-579-85591301
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EC2 Malaposta Do Carqueijo, ; Mealhada, Aveiro, Portugal
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86-595-23266989
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0086-022-58793900
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86-755-27125368
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Quanzhou Qingyi Co., Ltd.
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Wenling Road
86-595-22122268
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86-591-88000669
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Room 2205-6, 22/F., Seapower Centre, 73-77 Lei Muk Road, Kwai Chung. N T., ; Hong Kong
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86 29 88250143
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Room 808, Jianxin Building, Cangzhou City, Hebei Province, China
86-317-3562699
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4-504 Jiaxin Commercial Center, Putian City, Fujian Province. China
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