Demand for draft beer has shrunk due to closures of on-premise accounts and cancellations of large events. Lester Jones, chief economist for the National Beer Wholesalers Association, estimates the industry's maximum loss exposure for March 2020 would be 250,000-300,000 barrels. "The shift to packaging into bottles and cans wherever possible will help minimize losses," he says. "It's all a big moving target at this point."
Arizona distributor helping recycle draft beer into hand sanitizer
Some beer distributors are turning lemons into lemonade. In Arizona, SanTan Brewing Company has announced a partnership with Crescent Crown Distributing to use keg beer beyond the “best before” date to make medical-grade hand sanitizer. They will recycle more than 16,000 gallons of draft beer to produce 400 gallons of hand sanitizer. The majority of the sanitizer will be donated to HonorHealth and the local city.
Grupo Modelo in Mexico halts brewing of Corona beer
Mexico's Grupo Modelo announced it will temporarily stop brewing Corona beer and other exported brands. The Mexican government this week declared a health emergency and ordered the suspension of non-essential activities. In the U.S. brewers and distributors are essential. A March 28 memo from the Department of Homeland Security listed food manufacturer employees – including beverage production facilities – as essential workers, in addition to workers who support crucial supply chains like food and agriculture.
Some states are allowing alcoholic beverages to be added to takeout orders from bars and restaurants. According to recent data from Nielsen, 15 percent of Americans on average are ordering alcohol with their takeout. Of those orders, red wine was included in 60 percent of those orders, followed by imported beer (55 percent), craft beer (51 percent) and white wine (50 percent). Pre-made cocktails and spirit mixers tied for fifth place at 47 percent.
Convenience stores are focusing on supplying grocery staples
During the pandemic, people are increasingly turning to convenience stores as a resource for pantry items. According to a report from NACS, a trade association that represents the convenience and fuel retailing industry, it found 52 percent of stores that responded said grocery sales have increased. Additionally, 14 percent of stores are offering some sort of curbside pickup program to help consumers limit exposure.
