Impact of Tariffs on Port City Brewing's Supply Chain and Beer Prices

Tariffs and Supply Chain Disruptions

• ⚠️ Tariffs imposed by the US government have thrown the supply chain into chaos for Port City Brewing.
• 💡 While USMCA might offer some relief for certain imports like malt from Canada and bottle caps from Mexico, uncertainty remains regarding the source of aluminum for cans.

Challenges with Packaging Supplies

• 📦 Port City Brewing, which primarily uses bottles for 70% of its packaged beer, is facing a severe shortage of bottles.
• 🚚 Their bottle supplier informed them they could no longer provide bottles beyond March 31st, forcing a frantic search for new suppliers.
• 🍺 This shortage is exacerbated by larger breweries consuming available glass to avoid using more expensive aluminum cans.

Critical Ingredients and Quality

• 🌾 The brewery relies on a specific strain of Canadian pilsner malt for the unique taste and body of their beer, citing its high quality due to Canada's colder climate.
• 🏆 Port City Brewing has won multiple awards, attributed to their brewers' dedication to sourcing the best ingredients globally for their desired beer styles.
• 📉 Despite the challenges, the brewery anticipates that these supply chain issues will negatively affect beer prices.

Unprecedented Business Environment

• ⏳ Operating for 14 years, Port City Brewing has never encountered a situation like this.
• 🗣️ Even their long-time bottle supplier, with 35 years in the business, expressed that they have never seen anything similar.