Kentucky breweries could face higher costs for cans as President Trump’s 25 percent tariff on imported aluminum takes effect. Patrick Fannin is the head brewer and general manager of Dreaming Creek Brewery in Richmond. He said most of the can suppliers at trade shows use imported aluminum, and he’s concerned.
“We've already felt the squeeze since COVID, with our cost, our margins are getting smaller and smaller, from everything from aluminum to ingredients to the chemicals we use.”
Fannin said Dreaming Creek pays three times as much for cans as large breweries, which receive discounts for purchasing much larger amounts.
“So this is just one more thing that we're taking account when we look at our margins and what we're selling cans for, you know, in distribution or in the tap room.”
Fannin said current contracts with distributors, which account for the bulk of Dreaming Creek’s sales, prevent him from raising prices on beer sold elsewhere. According to a February Reuters article, about half of all aluminum used in the U.S. is imported.
** WEKU is working hard to be a leading source for public service, and fact-based journalism. Monthly supporters are the top funding source for this growing nonprofit news organization. Please join others in your community who support WEKU by making your donation.
