Editor’s note: The below news items have been reported in the Insider version of the Brewbound Newsletter between June 18-20. Become an Insider today!
RahrBSG has increased prices on select products due to tariffs, the ingredients purveyor announced yesterday in a tariff-related FAQ.
Cost are rising on these tariffed products:
- Malts from Crisp Malt (UK) and the Malting Company of Ireland (EU);
- Hops from farms in New Zealand, Australia, Europe and the UK;
- Yeast and other brewing aids from the UK and Europe.
Rahr and Gambrinus brand malt is exempt from tariffs under the U.S.-Mexico-Canada Agreement (USMCA). RahrBSG and some EU- and UK-based maltsters (Weyermann, Simpsons Malt and Mouterij Dingemans) have agreed to share the cost of 10% tariffs through the end of 2025.
Other steps RahrBSG is taking amid shifting trade policy are “absorbing tariffs where possible to delay price increases,” “sourcing alternative products,” “communicating early and often” and “advocating for our customers.”
RahrBSG wrote: “As a family-owned company with long-standing supplier relationships, we’re able to take a long-term view, and prioritize customer stability over short-term reaction. We’re proud to partner with others who share that philosophy.”
Notable/Quotable: ‘I Don’t Know of Anyone Who Wants to Pay More for Their Beer’
– Port City Brewing founder Bill Butcher to the New York Times on increased tariffs on aluminum.
Rising aluminum can prices “will likely force us to raise our prices,” he added.
Butcher and FX Matt Brewing president Fred Matt shared their experiences trying to navigate the market. Matt explained that his brewery could “easily switch” to bottles with its high-speed line, but the move would run into issues with some retailers whose shelf sets and warehouses are set up for can packaging.
Meanwhile, Butcher shared that Port City’s bottle supplier cut off his brewery, leaving them scrambling as it orders around 50,000 bottles and 10,000 cans per month.
“A lot of the major brewers started shifting from cans into bottles. They didn’t want to pay the higher price on the aluminum tariffs,” Butcher told the Times.
The beer industry and craft brewers specifically have increasingly relied on canned beverages due to consumer demand.
Within craft, cans now account for 73.3% share of off-premise packages compared to 26.7% bottles. Craft can packages have generated more than $4.7 billion in sales for the 52-week period ending May 17 NIQ-tracked channels (total U.S.xAOC + liquor open state + convenience). Meanwhile, off-premise dollar sales bottles totaled $1.62 billion in the same time frame.
Silver City Brewing Sells to Ackley Brands
Seattle-based, wine-centric platform Ackley Brands has acquired Silver City Brewery (Bremerton, WA), the Kitsap Sun reported.
Silver City marks Ackley’s 2nd foray into craft beer, following the company’s acquisition of Mac & Jack’s Brewery (Redmond, WA) in 2023.
Aside from ownership, little is expected to change for Silvery City, which will continue production at its brewery and maintain distribution through Columbia, according to the report. Silver City Restaurant and Ale House (Silverdale, WA) is excluded from the deal.
Last year, Silver City’s output declined 21%, to 15,198 barrels of beer, according to the BA. The brewery was founded in 1996 by brothers Scott and Steve Houmes and Don Spencer.
Reuters: Dietary Guidelines to Drop Daily Bev-Alc Guidance, Promote Moderation
Updated U.S. Dietary Guidelines for alcoholic beverage consumption could be released by the end of this month and could feature a major change, according to a Reuters report Wednesday.
The outlet, citing “3 sources familiar with the matter,” stated that the updated guidance could drop suggested daily limits of 1 drink or less for women and 2 drinks or less for men, in favor of encouraging moderation or limiting alcohol intake due to health risks associated with alcoholic beverages, including breast cancer risks.
Nevertheless, the guidelines remain in development and the final product could change, sources told the outlet.
Last week, Reuters reported that the guidelines could be released before July but the existing alcoholic consumption recommendations were “not slated to dramatically change.”
See previous Brewbound coverage here, here, here and here.
Numerator: Tariffs Still Unsettling Consumers’ Economic Sentiment
Nearly 90% of consumers are concerned about how tariffs may affect their shopping habits or personal finances, according to consumer research firm Numerator.
Numerator has tracked consumer tariff sentiment since early April and found opposition to them is growing in “a trend that intensifies at the margins.” With 38% in favor, boomers and older consumers are more likely to support tariffs, while Gen Z (55%) and millennials (49%) are more likely to oppose.
Almost two-thirds (64%) of respondents are concerned about price increases on everyday goods and 59% worry about inflation, Numerator reported. 28% of consumers plan to cut back on purchases of imported goods.
Revisit Brewbound’s coverage of the May 2024 Consumer Price Index for a refresher on bev-alc inflation.