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The US is running low on aluminum cans, and analysts warn you might see your favorite beers go out of stock

Jul 24, 2020, 22:41 IST
Business Insider
Aluminum can supplies are running low.REUTERS/Shannon Stapleton
  • Supplies of aluminum beer cans are reportedly running low.
  • One reason for that is that more beer is being consumed at home than in bars, restaurants, and brewery taprooms.
  • Evercore analysts warned that consumers might see their favorite beers go out of stock as companies shift production.
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The US is running low on aluminum cans, Brewbound recently reported.

The tight supply is likely due to a combination of trends that have been bubbling up in the past few months.

For one, thanks to coronavirus-related precautions, beer that usually would have been consumed on-premise at bars, restaurants, and breweries is now being packaged to be drunk at home.

And second, canned hard seltzers and wines are having a major moment, with drinks like Mark Anthony Brands' White Claw and Boston Beer Company's Truly Hard Seltzer leading the charge.

"Prior to COVID, 2020 was already poised for notable can growth across a variety of categories," Scott McCarty, strategic communications director at Ball, the largest can manufacturer in the US, told Brewbound.

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"For instance, hard seltzers have experienced explosive growth as a category and specifically in cans. Soft drinks and the still and sparkling water categories have seen it, too, with marketers shifting their packaging mix toward cans and away from single-use plastics."

CNN Business reported that can shortages have led beer producers including Molson Coors, Brooklyn Brewery, and Karl Strauss to decrease production of certain brands and instead focus on their best-selling brews.

And, Evercore analysts are warning that consumers might start to see some of their favorite beers go out of stock.

​​"From what we can piece together, everyone is now having issues meeting demand, and there is fear of lost business to wine and spirits," analysts Robert Ottenstein and Eric Serotta wrote in a research note published last week, warning about "rampant and unprecedented," out-of-stocks, according to CNN.

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