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Nobody stops in the increase of prices and less when it comes to products with great demand. Constellation Brands disclosed that the price of beers will increase due to the shortage of glass that they use for bottling their beverages.
Blommberg announced that the producer of popular beer brands Corona and Modelo estimate to raise prices by up to 2 percent due to the shortage of glass, the increase in the price of raw materials and the lack of drivers to transport goods.
According to the report, the largest beer import company in the United States, explained to shareholders that they are suffering from the lack of glass, mainly the one with the brown coloring.
This factor has been added to the major transportation and storage costs caused by interruptions in the supply chain that have been accentuated during the Covid-19 pandemic.
Like all over the world, Constellation Brands is experiencing obstacles to working normally. In December we reported in this same space that in Australia they ran the risk of suffering from a beer shortage in the middle of the Christmas season due to the lack of wooden pallets to transport drinks.
And on this side of the hemisphere the shortage of glass has added to the recent shortage of aluminum cans.
However, Bill Newlands, CEO of Constellation Brands, commented: “We are working diligently to address the brown glass shortage that’s acting like a headwind“.
Another beer affected by the same situation is Negra Modelo, which uses brown glass.
According to analysts of this problem, they consider that if the accessibility to this material is reduced, the sale of beer could be limited.
Late last year Scott DeFife, president of the Glass Packaging Institute, warned that the spirits industry was already grappling with a labor shortage and reduced trucking due to the pandemic.
On that occasion, he clarified that, although many bottles were being manufactured in the United States, they were facing faulty logistics and import congestion, which is why American breweries have been forced to raise the prices of their products.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.