As home consumption continues to surge while restaurant channels recover slowly, the food and beverage industry remains under the shadow of an aluminum can shortage. Facing this challenge, major beer companies are taking proactive measures—strengthening partnerships with can manufacturers to boost production capacity while simultaneously expanding global procurement channels to secure supply chains.
Global Sourcing Emerges as Critical Strategy
Molson Coors CFO Tracey Joubert revealed during an earnings call that since the pandemic began, the company has aggressively sourced additional cans from across four continents to support core brands and meet unprecedented demand in off-premise channels. "This global approach requires cultivating strong supplier relationships," emphasized Molson Coors' supply chain lead Hattersley, noting that partnerships prove vital for supply security.
Beyond procurement efforts, Molson Coors has invested in new production lines capable of manufacturing approximately 750 million sleek "fashion cans" annually. These initiatives aim to alleviate supply constraints while ensuring product availability.
Capacity Expansion Shows Early Results
While additional sourcing and new production facilities haven't completely resolved shortages, executives report improving conditions for glass bottles, cardboard, and contract-manufactured cans. "Our Coors Light can inventory now exceeds last year's levels," Hattersley noted, signaling gradual progress in overcoming supply challenges.
Aluminum Cup Strategy Gains Momentum
Ball Corporation, the world's largest can manufacturer, is implementing innovative solutions. CEO John Hayes announced dedicated production facilities for aluminum cups rather than relying on external suppliers, strategically positioning the company for retail market expansion in 2021.
The manufacturer reported an 11% annual sales increase in North America for 2020, with Q4 growth reaching 6%. Multiple new U.S. production sites have commenced operations, while its Pennsylvania facility prepares for capacity boosts later this year.
Industry-Wide Challenges and Strategic Responses
The aluminum shortage represents a systemic challenge accelerated by pandemic-driven consumption shifts and global supply chain disruptions. Brewers are deploying multipronged solutions:
Supply Chain Diversification: Establishing global procurement networks and expanding production capacity
Alternative Packaging: Developing glass, cardboard, and plastic options to reduce aluminum dependence
Supplier Collaboration: Strengthening partnerships to build resilient supply networks
Root Causes of the Shortage
Several underlying factors compound the aluminum crisis:
Raw Material Constraints: Environmental policies, energy costs, and geopolitical factors disrupt aluminum production
Recycling System Gaps: Inefficient collection infrastructure limits recycled aluminum availability
Logistical Challenges: Rising transportation costs disproportionately impact lightweight, bulky can shipments
Consumer Impact and Market Adaptation
The shortage has tangible effects on consumers, including potential price increases, reduced product selection, and occasional availability challenges. However, industry leaders anticipate gradual improvement as global economies stabilize and alternative packaging solutions mature.
This supply crisis underscores the critical importance of robust supply chain management and organizational agility in responding to market disruptions. The brewing industry's response may establish new benchmarks for crisis management in manufacturing sectors worldwide.