Greenspoon Marder Hospitality, Alcohol & Leisure Blog: A Note on Supply Chain Problems – A Pain in the Glass

Aug 12, 2021 Miami, FL

The pandemic brought a spike in off-premise alcohol sales and consumption, which was certainly helpful to the industry during difficult times and which producers hoped would continue. Oddly, sales in some parts of the country are on a downward trend but not because of consumer preference. The beverage alcohol industry, and likely others, are experiencing a significant drop in the availability of glass bottles.

News outlets across the country are reporting that bottle shortages have resulted in empty, or at least partially empty, liquor store shelves. Some of the hardest-hit markets reportedly include those in the mid-Atlantic, including Washington DC, Maryland, Virginia, the Carolina’s, Ohio, and even as far west as the Dakota’s.

Florida, where this writer sits, has yet to experience the crisis of empty shelves, but local producers are not unaware of the looming shortage. Some have inventoried glass bottles to carry them through the end of year selling season, but supply remains uncertain as the New Year enters.

Forbes magazine reports that supply chain issues have impacted all sorts of industries around the world, and the alcohol bottling industry is now being impacted. Labor shortages, lack of truck drivers, and other workers have slowed the manufacturing process. Also, the sudden reopening of restaurants and bars (which hopefully will continue) has contributed to a decrease in the availability of bottled beverage alcohol in some markets. It also seems that other raw materials are in short supply, including packing materials such as cartons and labels.

Multiples of issues, many stemming from the waxing and waning of Covid-19, have contributed to supply chain problems. This industry observer is willing to opine that as we enter 2022 and the Champagne begins to flow, so will the availability of other alcoholic beverages, albeit with a commensurate price increase resulting from these supply issues.

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Greenspoon Marder Hospitality, Alcohol & Leisure Blog: A Note on Supply Chain Problems – A Pain in the Glass

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