Australia: Largest beer manufacturers rationing most popular canned beer in lead-up to Christmas

One of Australia’s largest beer manufacturers has been rationing its most popular canned beer in the lead-up to Christmas, amid supply chain issues due to the Covid-19 pandemic, The Guardian reported on December 10.

Shortages of wooden pallets and aluminium respectively have hit Australia’s two beer giants, Lion and Carlton & United Breweries (CUB).

But people craving a cold one on Christmas Day shouldn’t panic, with the industry pouring cold water on talk of major shortages over summer.

CUB says while it is not facing shortages of kegs or its Australian-brewed stubbies or cans, the company recently had to limit the sale of some items due to aluminium shortages.

“To be clear, we are not facing shortages of VB, Carlton Draught, Great Northern, Carlton Dry, or Pure Blonde,” sales director Peter Bingeman said in a statement to Guardian Australia.

“Recently we had limited the sale of our most popular canned beer for a short time due to aluminium shortages, but those shortages have been successfully managed.”

Purchase limits introduced on various CUB products at alcohol retailer BWS are anticipated to be lifted by the middle of next week.

Bingeman said there were international supply chain issues for the Mexican beer Corona, which is imported by CUB.

“However, we expect supply will continue to arrive in Australia in the lead-up to Christmas and we are distributing it fairly to retailers across Australia to help limit shortages,” he said.

BWS is not anticipating beer shortages over the busy Christmas and New Year period.

Lion, which makes Tooheys, XXXX, Hahn, Furphy and James Squire, is among a number of businesses affected by a widespread shortage of wooden pallets.

The situation, labelled “pallet-gate” by the Coles CEO, Steven Cain, in October, has forced Lion to prioritise its most popular products as the busy holiday season looms.

Products less in demand have been left to dwindle out of stock, unlikely to be back in production before 2022.

Sales director Warwick Parks confirmed Lion was being impacted by “a number of supply chain challenges, including an industry-wide shortage of hardwood pallets”.

“We recognise this is a busy and important time of year for our trade customers and we are doing everything possible to minimise disruptions to supply and delivery,” he said.

“We are working around the clock to source alternatives and secure additional pallets.”

The shortages are anticipated to affect specific pack sizes as opposed to entire brands – for instance, the same beer may be unavailable in a 10-pack but available in a six-pack.

A spokesperson for Lion said the company wanted to reassure the community there would be no issue getting beer for Christmas.

“We have been prioritising production of our top-selling pack formats in response to the national shortage of hardwood pallets and other supply chain challenges. This means that while some pack formats for certain brands may go out of stock, the vast majority of our main pack formats will still be available right through the festive season.”

Lion had been “working behind the scenes to secure additional pallets and source alternatives to keep the beer moving”.

A spokesperson for BWS owner Endeavour Group, which also owns liquor chain Dan Murphy’s, said coolrooms were “filled with stock ahead of Christmas”.

Alcohol Beverages Australia CEO, Andrew Wilsmore, also sought to reassure shoppers there “will still be plenty of drinks to choose from”.

“Some products, however, may not be available due to global supply chain disruptions and local pallet availability which is hampering the delivery of beer, wine and spirits to retail and hospitality businesses. All parts of the industry’s supply chain are working closely together to resolve any delays.”

The worries over beer supply come after reports of a champagne shortage and widespread supply chain issues in the lead-up to the Christmas period.

“It’s a mess right now,” said associate professor Vinh Thai, who works in the department of supply chain and logistics at RMIT.

In an interview with Guardian Australia, Thai said the pandemic has triggered a global shortage of empty containers, congestion at ports, and rising sea freight costs.

As well, he said, the spike in Australia’s property market has led to a surge in timber importations for building, which has in turn created a shortage of timber to use for making wooden pallets.

Disruptions at one point of the chain have a “multiplying effect” and hit consumer countries like Australia particularly hard, he said.

“My prediction is, best-case scenario, things will ease out a little bit in the later half of next year,” Thai said. “In a conservative scenario, I would look into 2023.”

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