Craft beer producers in Maryland, as well as across the United States, are preparing for price hikes that they say will be inevitable due to new tariffs on key ingredients and materials. While the rising cost of aluminum is a major concern, brewers in Baltimore are especially worried about the impact of these tariffs on their operations.
Edward O’Keefe, co-owner of Peabody Heights Brewery, explained that one of the most significant challenges is the expected 30% increase in the cost of grain. “A lot of grain comes from Canada, so we’re expecting a 30% increase on that — that’s 80% of the input going into the beers,” O’Keefe said.
In addition to grain, the price of aluminum — which is critical for canning — has also risen sharply, further straining costs for breweries. “The aluminum to produce the cans, those are also seeing a 30% increase,” O’Keefe added.
At Union Craft Brewing, CEO Adam Benesch shared similar concerns, particularly about the rising costs of aluminum cans, which are a major expense for the brewery. “For us, the biggest impact will be around aluminum cans, which are one of our largest costs here at Union. We package all of our beers in cans,” Benesch explained. However, he noted that the brewery had anticipated the tariff impact and proactively stocked up on cans. “We planned in advance and ordered up for our canning needs. I think we have enough cans here to last a good six months.”
But the challenges go beyond just aluminum. O’Keefe also highlighted concerns over the impact of tariffs on brewing equipment, much of which is sourced from China. “A lot of keg equipment comes from China. Companies selling brewery equipment, a lot of it comes from China,” he said.
Brewers are also grappling with the uncertainty of ever-changing trade policies. “There’s just so much uncertainty and chaos every day; it’s something else coming from the White House,” Benesch said. “It’s very hard to plan and predict what’s going to happen because of all the chaos that exists.”
Both O’Keefe and Benesch agree that price increases for their products may be unavoidable. O’Keefe, who noted that his brewery’s prices range from $9 to $17 per product, expressed his reluctance to raise prices, but acknowledged the necessity. “When you’re talking about increasing things by 30%, do people want to pay $20 for a six-pack?” O’Keefe said.
As the cost of ingredients and materials continues to rise, both local breweries are preparing to adjust their pricing to stay afloat, but the economic uncertainty leaves them uncertain about the future of the industry.
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