As the Canada-U.S. trade conflict continues, Alberta’s beer industry is closely monitoring the escalating impact on metal can prices, with breweries across the province adjusting their strategies in response to new tariffs on aluminum.
On Wednesday, U.S. President Donald Trump imposed a 25% tariff on Canadian metal products, including aluminum. In retaliation, the Canadian government introduced almost $30 billion in tariffs, effective Thursday. The move has sent shockwaves through industries reliant on aluminum, including microbreweries in Calgary, where beer cans are typically made from aluminum.
Chris Carroll, co-founder of Ol’ Beautiful Brewing, a Calgary-based brewery, explained the challenge: “Breweries everywhere are working hard to keep costs under control.” Ol’ Beautiful began producing its own take-home beer cans in 2017, and last year sold a million cans. Despite sourcing locally made cans, the brewery is still affected by the integrated supply chain that sees aluminum cross the Canada-U.S. border, meaning tariffs will likely raise their costs.
While the brewery has stockpiled months of cans to weather the storm, Carroll anticipates a 7% price increase when they reorder. “Right now, we’re not feeling it, but I’m sure the prices will rise,” he said.
Ol’ Beautiful is not alone in this predicament. Big Rock Brewing, Alberta’s largest microbrewery, has also stocked up on cans in anticipation of higher prices. Brad Goddard, the brewery’s vice-president of business development, noted that while they typically replenish their can supply every two weeks, they are now looking at two months’ worth. With up to 65 million cans used annually, Big Rock faces the risk of rising costs despite an abundant supply.
“We dealt with a shortage of cans during the pandemic, and now, with tariffs looming, costs are again rising,” Goddard explained. The uncertainty caused by the threat of tariffs is already influencing prices, with aluminum futures on the market reacting nervously to the situation.
For breweries like Tool Shed Brewing, which typically uses tall 473-millilitre cans imported from the United States, the tariffs have prompted a shift in sourcing. Graham Sherman, the brewery’s founder, revealed that they are now ordering cans from China, bypassing the U.S. altogether in an effort to secure cheaper prices.
“We make sure our cans are sourced from China, manufactured there, and shipped directly to Canada, avoiding U.S. territory,” Sherman said.
As Alberta’s microbreweries adjust to the shifting landscape, the hope is for a swift resolution to the trade conflict. However, if the trade war continues, there are concerns that consumers will ultimately bear the brunt of higher beer prices.
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