The prolonged aluminum can shortage won't end anytime soon, the chief executive of Ball Corp. tells Axios, quashing the hopes of brewers for a return to normal.
- "This year is going to continue to be challenging," says John Hayes, the CEO at the Broomfield-based can giant.
What's happening: A surge in demand for cans amid the pandemic, paired with a shortage of aluminum, continues to plague the beverage industry.
- The lighter weight and convenience of cans makes it the preferred packaging for new beverage lines, from carbonated water and seltzers to wine and cocktails.
- The competition is pinching brewers, particularly small ones who've shifted from serving beer over the bar to packaging brews due to pandemic shutdowns.
- "It's certainly not going to be the clean look we're known for," Dave Thibodeau, Ska Brewing's founder, said at the time.
What's new: Ball Corp., the world's largest supplier of beverage cans, is investing more than $1.5 billion to increase capacity to meet demand that Hayes says the industry hasn't seen since the 1970s.
- Ball makes more than 350 million cans a day at its facilities around the world.
- Yes, but: "Until the new capacity is up and running, it's going to continue to be challenging" to meet demand, Hayes added.
Of note: To address the supply shortage for can makers, U.S. Rep. Ken Buck, a Republican whose Colorado district includes more than 50 breweries, reintroduced legislation to investigate price setting and ensure a fair market for purchases.
- "These breweries and other beverages companies are currently experiencing unfair market prices for aluminum prices," Rep. Buck said in a statement.
More Denver stories
No stories could be found
Get a free daily digest of the most important news in your backyard with Axios Denver.