Latest news with #BeerInstitute
Yahoo
21-05-2025
- Business
- Yahoo
Colorado is one of the best states for jobs in the beer industry: Study
DENVER (KDVR) — The local beer industry supports many hard-working Coloradans, and not just by offering them a cold one to crack open when they get home from work. Despite the loss of 41 breweries last year and sales dipping below the national average, beer is still a great contributor to Colorado's economy. 16 Colorado breweries win awards at World Beer Cup 2025 More than 2.4 million people across the country make a living because of beer, according to a recent Beer Serves America report by the Beer Institute's chief economist, Andrew Heritage, and Colorado is one of the top states for jobs in the beer industry. The beer industry accounts for about 1 in every 48 jobs in Colorado, the 8th most per capita of any state in the U.S. Vermont – 1 in every 32 jobs Maine – 1 in 38 jobs Montana – 1 in 38 jobs Oregon – 1 in 43 jobs Nevada – 1 in 43 jobs Wisconsin – 1 in 43 jobs New Hampshire – 1 in 47 jobs Colorado – 1 in 48 jobs Idaho – 1 in 51 jobs Hawaii – 1 in 52 jobs According to the report, beer provides 61,262 jobs in Colorado, contributing $13.1 billion to the economy and $1.3 billion to taxes. The nationwide impact is felt across many industries, with more than 43,000 agricultural jobs and 77,000 manufacturing jobs in the U.S. depending on the beer industry. The over 61,000 jobs are spread out among different parts of the beer-making process, including: 6,253 brewing jobs 2,242 distributing jobs 18,886 retail jobs 1,400 agriculture jobs 1,585 manufacturing jobs The jobs earn $4 billion for Coloradans' wages, according to the report. More details and data, including a tool to pull up data for specific congressional districts, can be found in the full online report. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Reuters
12-03-2025
- Business
- Reuters
Bad news for American beer drinkers as aluminium tariffs kick in
LONDON, March 12 (Reuters) - First some good news for U.S. aluminium buyers. President Donald Trump has backed off from his threat to hit imports of Canadian metal with a huge 50% tariff. Now for the bad news. As of today they will be paying a 25% import tariff, not just for Canadian metal but for all aluminium products from all countries. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. Market pricing has already shifted to reflect the Trump administration's doubling-down on tariffs as a way of reviving domestic smelting capacity. The CME Midwest premium , reflecting the cost of unwrought aluminium delivered to a U.S. fabricator over and above the international London Metal Exchange basis price, is trading at record highs. The high premium will flow down the aluminium product chain until it hits the last-stage user, whether it be Ford Motor (F.N), opens new tab, Lockheed Martin (LMT.N), opens new tab or one of the country's many independent brewers. That's how tariffs have worked to date and things won't change while the United States remains so dependent on imports. TARIFF HANGOVER Trump's original 2018 tariffs on aluminium were set at 10% and within a year the Beer Institute, which represents the nearly 8,000 brewers in the United States, estimated they had already cost the industry an extra $250 million, opens new tab. A report by consultancy Harbor Aluminum found that $50 million had gone to the U.S. Treasury, $27 million to domestic smelters and $173 million to the fabricators who convert metal to aluminium sheet for beer cans. What really irked the Beer Institute was that the import tariff was being passed through even though U.S. cansheet typically contains around 70% recycled metal sourced domestically. But that's how tariffs tend to work. Just ask European aluminium buyers. The European Union also imposes import tariffs ranging from 3% on primary aluminium to 6% on some alloys. Researchers from the LUISS University of Rome studied the impact on consumers and in a 2019 paper, opens new tab found that even though duty-exempt metal accounted for around half of all European Union imports, everyone ended up paying 6% anyway. Producers are incentivised to "align their prices to the highest possible level - that is, the duty-paid price," the researchers wrote. The Beer Institute's follow-on research in 2022, opens new tab confirmed this harsh economic reality, finding that even with exemptions for key suppliers such as Canada, beer makers were still paying the full import tariff for their can metal. The cost at that stage had risen to $1.4 billion. IMPORT DEPENDENCY Harbor Aluminum's finding that the main beneficiaries of tariffs to date have been first-stage processors reflects the imbalanced nature of the domestic U.S. supply chain. The country has a large base of semi-manufactured product makers but only four operating primary metal smelters to supply them. The aluminium sector directly employs more than 164,000 workers but only 4,000 are engaged in upstream metal production, according to the U.S. Aluminum Association. Those four smelters produced 670,000 metric tons of metal in 2024, compared with U.S. consumption of around 4.9 million tons. Imports of primary metal totaled almost 4.0 million tons, of which 70% came from Canadian smelters. It's hard to see how that dynamic is going to change any time soon. Even if all the currently idled smelting capacity of around one million tons per year returned to production - a big "if" given the age and cost structure of the four mothballed plants - it would still leave a big import dependency gap. Century Aluminum's (CENX.O), opens new tab proposed new smelter is years away and the company hasn't yet found a source of competitively priced power to feed the plant's electrolysis process. There is much more potential to lift domestic production from domestic scrap but as long as even one ton of extra imported metal is needed to meet domestic consumption, you can be sure that the tariffs will continue to determine the end price for American buyers. TRADING UNCERTAINTY Moreover, as the markets learned on Tuesday, Trump is quite capable of raising tariffs on a presidential whim. The changeable tariff rhetoric is causing volatility in the CME U.S. premium, which briefly jumped to almost $1,000 per ton over the LME price on the threat of 50% tariffs on Canadian metal before retreating on news of the truce with Ontario Premier Doug Ford. But it may also be about to generate a major realignment of global trading patterns. Previous spikes in the U.S. aluminium premium have pulled European premiums higher. This is logical given that Europe, which is also dependent on primary metal imports, must compete for spare units in the global market-place. Not this time, though. Even as the U.S. premium has surged to all-time highs, European premiums have been falling. This is counter-intuitive, particularly since European consumers are set to lose Russian supply over the next year as part of the bloc's latest sanctions package. If anything, the European premium should be even more sensitive to what is happening in the North American market. The divergence suggests that some suppliers to the United States are already looking to avoid Trump's tariff tantrums by re-directing sales to Europe. If so, it will be good news for European beer drinkers, who may raise an aluminium can to their less fortunate American counterparts.
Yahoo
12-02-2025
- Business
- Yahoo
Editorial: Hold my beer — aluminum tariffs could drive up costs for Illinois craft brewers
Americans like beer. On Super Bowl Sunday, some experts estimate Americans drank about 325 million gallons of it. A day after the big game, however, President Donald Trump announced 25% tariffs on steel and aluminum imports. The beer industry is rightfully concerned about this issue — aluminum is the single largest input cost in American beer production, according to the Beer Institute. 'It's a big deal. This is the beginning of making America rich again,' Trump said from the Oval Office. 'All you have to do is make it in the United States, we don't need it from another country.' Though many people often feel removed from what happens in D.C., politics doesn't occur in a vacuum. The real-world consequences of these tariffs will certainly be felt in both big and small ways across our city and state. Illinois is home to over 300 breweries, which contribute over $3 billion to our state's economy. One of those craft brewers is Solemn Oath based in Naperville. Owner John Barley said their aluminum supplier is local and he hasn't been alerted to any major spikes in pricing yet. But he's worried, having just soldiered through the pandemic-related supply chain challenges many other businesses faced, and says his customers are sensitive to price increases. We understand the desire to spur American steel production, but broad tariffs are sure to hamper growth and jobs in other industries that must pay the protectionist bill of goods. The casualties are likely to include independent brewers, which already were navigating changing adult drink preferences before facing the likelihood of higher material costs. Unlike major beer conglomerates, small breweries lack the buying power to absorb price hikes, meaning higher costs either are passed on to consumers or the businesses are forced to cut staff, scale back production or even close. And while Illinois' craft beer scene is relatively small (ranking 33rd in the U.S. for breweries per capita), Illinois' craft brewers produce a high volume of their product, and they do it with pride. 'I think our story goes well beyond the beer as an industry,' Barley told us. 'With our product, what's different about us is at the end of the day we're making a product people celebrate with. They put their feet up after a hard day of work and take a moment for themselves. Our role goes beyond just a beer and turns it into an important part of people's lives. To continue to provide that is important.' Craft brewing is far from the only industry that will be affected by Trump's tariffs. Automakers, manufacturers and the construction industry are also bracing for the effects, among others. Even the United Steelworkers Union, which welcomes tariffs as a way to protect against countries such as China flooding the market with unfairly traded products, urges 'a measured approach that both strengthens our manufacturing sector and accounts for our relationships with our allies, like Canada, who play by the rules.' Unfortunately, that's not how these tariffs work; they are a blunt instrument. While our enemies may suffer, so too will our allies and homegrown industries such as Illinois' craft brewers. Submit a letter, of no more than 400 words, to the editor here or email letters@
Chicago Tribune
12-02-2025
- Business
- Chicago Tribune
Editorial: Hold my beer — aluminum tariffs could drive up costs for Illinois craft brewers
Americans like beer. On Super Bowl Sunday, some experts estimate Americans drank about 325 million gallons of it. A day after the big game, however, President Donald Trump announced 25% tariffs on steel and aluminum imports. The beer industry is rightfully concerned about this issue — aluminum is the single largest input cost in American beer production, according to the Beer Institute. 'It's a big deal. This is the beginning of making America rich again,' Trump said from the Oval Office. 'All you have to do is make it in the United States, we don't need it from another country.' Though many people often feel removed from what happens in D.C., politics doesn't occur in a vacuum. The real-world consequences of these tariffs will certainly be felt in both big and small ways across our city and state. Illinois is home to over 300 breweries, which contribute over $3 billion to our state's economy. One of those craft brewers is Solemn Oath based in Naperville. Owner John Barley said their aluminum supplier is local and he hasn't been alerted to any major spikes in pricing yet. But he's worried, having just soldiered through the pandemic-related supply chain challenges many other businesses faced, and says his customers are sensitive to price increases. We understand the desire to spur American steel production, but broad tariffs are sure to hamper growth and jobs in other industries that must pay the protectionist bill of goods. The casualties are likely to include independent brewers, which already were navigating changing adult drink preferences before facing the likelihood of higher material costs. Unlike major beer conglomerates, small breweries lack the buying power to absorb price hikes, meaning higher costs either are passed on to consumers or the businesses are forced to cut staff, scale back production or even close. And while Illinois' craft beer scene is relatively small (ranking 33rd in the U.S. for breweries per capita), Illinois' craft brewers produce a high volume of their product, and they do it with pride. 'I think our story goes well beyond the beer as an industry,' Barley told us. 'With our product, what's different about us is at the end of the day we're making a product people celebrate with. They put their feet up after a hard day of work and take a moment for themselves. Our role goes beyond just a beer and turns it into an important part of people's lives. To continue to provide that is important.' Craft brewing is far from the only industry that will be affected by Trump's tariffs. Automakers, manufacturers and the construction industry are also bracing for the effects, among others. Even the United Steelworkers Union, which welcomes tariffs as a way to protect against countries such as China flooding the market with unfairly traded products, urges 'a measured approach that both strengthens our manufacturing sector and accounts for our relationships with our allies, like Canada, who play by the rules.' Unfortunately, that's not how these tariffs work; they are a blunt instrument. While our enemies may suffer, so too will our allies and homegrown industries such as Illinois' craft brewers.
