Topline
The supply chain issues that affected everything, from the price of bacon and lumber inventories during coronavirus pandemic could now be affecting your local liquor store. There are reports of booze shortages popping up all over the country.
Every step in the supply chain contributes to an alcohol shortage. getty
The Key Facts
The supply chain is in crisis and the business appears to be suffering from issues at every stage. There are no signs that the demand for alcohol has decreased. Problems start at the packaging. The U.S. has a shortage both of aluminum and glass cans that are used to store alcoholic beverages. The shortage of truck drivers has caused delays in shipping booze and other American products. This has made it so that American companies have begun to look for workers from overseas to fill the gaps. The generalized shortage of labor in the U.S. is also a problem, which has repercussions on everything from production lines to retail shops.
Surprising Fact
Pennsylvania and Virginia are two states that have liquor stores owned by the government. They have imposed quotas on the amount of alcohol customers can purchase at one time. These include popular whiskies as well as bourbons. Virginia's restricted items list limits customers to one bottle per day while Pennsylvania allows two bottles.
Important Background
After March 2020 lockdowns, retail alcohol sales began to rise as Americans were forced not to go out to bars or restaurants but to drink at home. The retail alcohol sales rose 20% in 2020, with a 26.7% increase in hard liquor sales. Despite many bars and restaurants opening again, there has been no sign of the demand declining in 2021. According to Buffalo Trace Distillery, the company claims it is producing and shipping record amounts of product. However, that's not enough to meet demand. Its bourbon is rationed in Virginia and Pennsylvania.
What we don't know
At this stage, it's not clear how long the shortages will last.
Continue reading
Violence, Drugs and Fast Food: How Americans Have Risked Their Behaviors While in a Covid Lockdown (Forbes).
The U.S. is in a Trucking Crisis We are looking for more drivers abroad (Bloomberg).
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