ORLANDO, Fla. — The cost of craft beer may soon go up after Ball Corp, one of the largest aluminum can producers in the country, announced it would soon increase its prices.
What You Need To Know
- Orlando brewery owner said cans went from 12 cents to 16 cents
- UCF professor explains the factors of increasing aluminum prices
- Green initiatives are causing prices to increase, the professor says
Patricia Dine, Dead Lizard Brewing Company owner, said because of the rise in can and grain costs, she will need to increase her prices for the first time since she opened her Orlando brewery five years ago.
“When we first started canning, we were paying about 12 cents a can and since then, just for the can itself that doesn’t include any labeling, cans have gone up 16 cents a can,” Dine said.
She said she is working with her distributor to ensure the price change is not too high.
“Productions costs are going up 25 to 30% but we’re only going to be able to increase our prices by 5(%) because we don’t want to risk pricing ourselves out of the market,” Dine said. “Our can sales make up probably like 75% of the distributors’ orders.”
Dine said she also orders her supplies ahead of time because of shipping delays.
University of Central Florida Associate Professor of Marketing Muge Yayla-Kullu said many factors are causing an aluminum price increase including a supply shortage, higher demand with many choosing to drink at home, and green energy policies because the material is cleaner to use compared to plastic.
“Green initiatives across the world cause aluminum prices to go up,” Yayla-Kullu said.
Yaylay-Kullu said group purchasing can help craft beer brewers purchase aluminum cans without breaking the bank.
In September, the price of aluminum reached a decade high as demand for the material soared. Yaylay-Kullu said she predicts the rise in price will continue into next year.
Dine said she is working to expand the distribution of her craft beer to other states.