Craft brewery owners sound alarm on rising cost of aluminum cans due to inflation

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Brewery owner says costs have increased as inflation hits US

Matt Barbiere, CEO and owner of Two Ton Brewing Co., says his company is feeling the impact of inflation but is trying not to pass those costs to customers.

Craft breweries have felt the impact of inflation as the price of aluminum cans is skyrocketing. Matt Barbiere, owner and CEO of Two Ton Brewing Co. in New Jersey, said the rising costs have been a challenge for his business. 

“It’s been tough,” Barbiere said on “Fox & Friends.”

“It’s getting harder source these cans, especially with prices going up. And we don’t want to pass that cost to our customers too much. So we’re definitely feeling it.”

Ball Corp., one of the world’s largest suppliers of aluminum cans, has announced it is increasing the price of cans and raising the minimum order from one truckload to five truckloads, which is about a million cans. 

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Barbiere, who orders his cans second-hand through a vendor, can only buy cans in small quantities.

“We definitely can’t afford or have the space for big truckloads worth of cans,” he told Fox News’ Steve Doocy.

Ted Mitzlaff, owner and CEO of Goodwood Brewing in Kentucky, said the impact of inflation has been “detrimental.”

Mitzlaff was forced to pass some of the costs to consumers. 

“We are implementing our first price increase in five years,” he said on “Fox & Friends First.”

Mitzlaff explained that aluminum is not the only product seeing price increases. 

“We are seeing large increases in energy costs,” he said, noting that the production process requires boilers, chillers and refrigeration.

“All that depends on energy, and energy costs are up anywhere from 10 to 20 percent for electricity and 50 percent for fuel. So it’s crazy.”

FILE PHOTO: Gas prices grow along with inflation as this sign at a gas station shows in San Diego, California, U.S. November, 9, 2021.
(REUTERS/Mike Blake/File Photo)

Mitzlaff said craft breweries are vulnerable to these cost increases because the revenue margins are much smaller than large distributors.

Small businesses have also faced nationwide staffing shortages, an issue which Barbiere said has slightly improved at his brewery.

“I think small businesses are the backbone of America, and it’s definitely hurting us.”

Barbiere said that despite inflation, staffing shortages and the supply chain crisis, he is confident his business will make it through the holiday season.

“I’m just happy to still be here and have the lights on and the doors open.”

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