Jul

23

More Supply Chain Issues

July 23, 2020 |

Ralph Vince writes: 

https://www.cnn.com/2020/07/22/business/beer-shortage-aluminum-can/index.html

Christopher Cooper writes:

I can confirm this from personal experience, but it has been building since before the Covid issues.

At my beverage co-packing facility we have been cut off by our can maker (Crown). We have really had to scramble to get out hands on cans for ourselves and our customers. We were able to find some in Canada. We’re probably OK until mid-2021, but will have to find a reliable source before then.

This is driven mostly by the advantages of cans over glass for many beverages. We shut down our glass bottling line in favor of making more room for canning. It is simply the preference of the brands that come to us, most of whom are startups.

Ralph Vince writes: 

I wonder how deep this goes though? is it affecting cans of aerosol spray as well, or other industrial componentry?

Christopher Cooper writes:

Not to my knowledge, Ralph. This is due to growing demand for aluminum beverage cans combined with constrained capacity due to the cost of building new plants. The beverage can plants don’t make anything besides beverage cans, and they are running at full capacity.

No doubt there are supply chain disruptions due to the current economy, I just don’t think this is your best example.


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