Shortages and spiking aluminum prices, pandemic-induced kinks in the supply chain and new minimum-order requirements from a major can producer have complicated what used to be a straightforward ordering routine for those in the canned beverage industry.
Eureka Heights beer goes through an in-house labeling machine on Tuesday, March 1, 2022, in Houston. The brewery’s use of this labeling machine allows them to produce smaller batches of individual beers without having to commit to a large minimum order for cans.Parked outside Galveston Island Brewing Co. are two large box trailers loaded with pallets of cans waiting to be filled with beer. As this makeshift warehouse illustrates, just-in-time orders for cans were another victim of COVID-19.
“Sometimes I have to take half-pallets,” Eureka Heights packaging manager Eric Allen said, describing the multiple rounds of phone calls it can take to make sure he’s fully stocked. Missing a deadline to a supermarket is not an option, given the competition for shelf space on the beer aisle. “There are cans available, but you have to work harder to get that can — and you’re going to pay more,” said Mark Dell’Osso, owner and founder of Galveston Island Brewing.
Cumulatively, the additional expenses have driven up production costs by about 30 percent per can, Dell’Osso said. Other brewers report similar increases. The larger minimums pose a particular challenge for craft breweries, which are generally small and have limited room for can storage. Already at Eureka Heights, floorspace set aside for events is now filled with towering pallets of cans for top-sellers Mini Boss and Buckle Bunny. These preprinted cans arrive ready to be filled, sealed and hand-packed in four- or six-packs.
Local production numbers show a continued interest in craft beer. After a dip in 2020, Eureka Heights produced 8,600 barrels last year, said Rob Eichenlaub, co-founder and head of operations. That’s a record for the Houston brewery, up from 7,700 barrels in 2019. Dell’Osso said production volumes rose at Galveston Island Brewing throughout pandemic, even if revenues did not. He, too, expects to surpass his production record this year.
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