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CALGARY, July 31 (Reuters) – Canadian microbreweries are facing a shortage of cans and higher costs, and some of them have been imported into the United States.
Canada is the world's third largest producer of beer and wine, in the United States, the United States, Statistics Canada data shows.
So when Canada struck back on the United States' tariffs on aluminum imports on July 1, and included cans, some craft tradesmen .
"Steve Beauchesne, co-founder and chief executive officer of Beau's Brewing Co in Ottawa, said that he sold a quarter of the 6.5 million liters (1.7 million gallons) of beer last year. in cans.
"Whether it's tariff-related, or not, it's largely because they have been unable to provide it," he added. Beauchesne, who declined to name his supplier, expects to run out of mid-August, with their next arrival at September.
Grand Prairie, Alberta-based GP Brewing Co resumed production in recent days, following a nearly two-week suspension, after receiving an order from U.S.-based maker Crown Holdings Inc., GP's president Matt Toni said. Crown Holdings for Disruption.
PLANT CLOSURE
Crown Holdings and Ball Corp. are among the major suppliers of cans to Canada, and in particular to microbreweries.
The reason for Crown's shortage of beer for some small breweries in Canada was unclear, Crown Chief Executive Timothy Donahue told badysts this month the cloak of strength in US carbonated soft drink demand.
Many of the cans used for soft drinks and beer are the same.
Crown declined to comment.
Donahue said the company had an oversold position in North America that was expected to continue through the summer.
"said Russell Love, sales representative for Cask Brewing Systems in Calgary," We're getting a lot of calls from the world. Cask, who has a supply agreement with Ball, has not experienced supply issues.
An additional microbrewery, which has been identified as being more sensitive, said that it was coming from the Crown, while supplies from Ball had not been affected. Ball did not respond to Reuters queries.
Supplies to the larger Canadian beer makers have not been disrupted, but the microbrewers, who make up a small but growing segment in Canada, have suffered as a result.
Microbrewers who spoke with Reuters said they had not pbaded on the cost to consumers.
More than 60 percent of Canned Canadians, said Luke Harford, president of trade badociation Beer Canada. He estimates the 10 percent tariff on aluminum will cost the domestic brewing industry C $ 10.5 million ($ 8 million) in 2018 if it stays in place.
"There have been a disruption and most brewers are now working hand to mouth. It's like the perfect storm, "Harford added. (Reporting by Marcy Nicholson, additional reporting by Allison Martell in Toronto by Denny Thomas and Jonathan Oatis)
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