Austin’s Craft Beer Scene Struggles with Supply Chain Issues

News Summary

Austin’s vibrant craft beer industry faces significant challenges due to rising costs and supply chain disruptions. Local breweries like Infamous Brewing Company and St. Elmo Brewing Company report soaring expenses and difficulties linked to tariffs on essential materials. Meanwhile, success stories like Big Country Organic Brewing Co. show resilience amidst the turmoil. As breweries fight to stay afloat, support from the community becomes crucial to navigate these turbulent times.

Austin’s Craft Beer Scene Faces Tough Times Amid Supply Chain Troubles

Austin, Texas is buzzing with craft breweries, but the recent supply chain issues are casting a shadow over this vibrant scene. With costs skyrocketing and ongoing worries about tariffs, local brewers are navigating a perfect storm of challenges.

The Rising Cost of Brewing

Take Infamous Brewing Company, for instance. This popular spot has seen a staggering 34% increase in costs over the past few years, and it’s not alone. The craft beer segment has had a tough go lately, with overall alcohol sales dipping. Entrepreneurs like Josh Horowitz are feeling the pinch as they try to keep their doors open while making delicious brews that keep customers coming back.

Small Brewers in Big Trouble

From the bustling streets of Austin to other parts of Texas, small breweries are bearing the brunt of these supply chain challenges. Bryan Winslow, co-founder of St. Elmo Brewing Company, is also sounding the alarm, explaining that this tumultuous market has hit small producers the hardest. In addition to rising prices for basic items like cans and tags, looming tariffs on aluminum and steel threaten to raise prices even more. It’s a real concern for these creative business owners.

Imported Aluminum: A Heavy Dependence

One major issue is the U.S. reliance on imported aluminum. The country doesn’t even rank among the top five aluminum producers globally, which means American brewers are heavily dependent on overseas sources. The combination of “potential tariffs” and the ongoing scarcity of aluminum could lead to even **higher prices**, impacting the overall brewing operation.

Preparing for a Bumpy Ride

In a bid to stay ahead of the game, Winslow made sure to proactively order a whopping 400,000 cans of aluminum to ensure his brewery can keep up with demand. With uncertainty looming large, smart moves like this might be the lifeline for breweries looking to ride out the financial storm.

A Focus on Organic Brewing

While many breweries face hardships, Big Country Organic Brewing Co. is celebrating its fourth anniversary! Standing out as the only Texas craft brewery focused on organic beer and hard seltzer, Big Country has not only survived but thrived, now spreading its products to over 500 retail and restaurant locations across multiple states like Texas, Colorado, and California. Ryan Shramek, their dedicated President, highlights the growth they’ve achieved despite facing inflation and supply chain hurdles, showing some bright skies amidst the brewing clouds.

Major Certifications: A Boon for Big Country

Big Country has earned some serious bragging rights by becoming the only certified organic brewery in Texas. Adding to their accolades, they also have certifications like USDA Organic, Non-GMO Project Verified, and Fair Trade Certified. Their commitment to fair trade has brought over $95,000 back to farmers and villages, showcasing that good beer can lead to positive change.

Further Afield: Job Losses in Other States

Meanwhile, it’s not just Texas feeling the squeeze. Up north in Massachusetts, Night Shift Brewing is grappling with its own set of challenges. Due to a troubling carbon dioxide (CO2) shortage, the brewery has had to make the tough decision to potentially cut twelve jobs. With 110 full-time employees on the payroll, that kind of news is hard to swallow.

Shortages Plague the Craft Beer Sector

This CO2 shortage is just one additional obstacle on top of their struggles with malt and aluminum shortages. This has caused much anxiety among brewers who want nothing more than to keep crafting the flavors their fans adore, especially during peak summer seasons when brewery staff numbers can swell to around 150.

In Conclusion: A Call for Community Support

As Austin’s bustling beer scene faces these multifaceted challenges, the community’s support remains vital. From local favorites like Infamous and St. Elmo to northward breweries like Night Shift, the call to action is clear: stand by your local brewers, because they’re the ones bringing unique flavors and experiences to life, even in the toughest of times. Cheers to that!

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Additional Resources

• KVUE News
• Wikipedia: Craft Beer
• Brewbound
• Google Search: Beer Supply Chain Issues
• Austin Chronicle
• Google Scholar: Aluminum Tariffs and Impact on Breweries
• Fox 7 Austin
• Encyclopedia Britannica: Tariffs in the USA
• Austin 360
• Google News: Austin Brewery Challenges 2023