Central Valley breweries await effects of tariffs on essential beer making materials

FRESNO, Calif. (KSEE/KGPE) – Trouble may be brewing for some beer makers across the Central Valley, as many await the effects of tariffs on vital components in their delicate process. 

It’s just the latest hurdle the craft beer industry could face coming out of the Pandemic.

“Since COVID, we’ve seen, you know, price increases anywhere from 2% to 5% year over year every year,” said Bert Aguilar, the director of brewing operations at Tioga-Sequoia Brewing Co. in Downtown Fresno.

It has been a challenging environment for breweries and other small businesses as is. But with the evolving trade war, it’s been a wait-and-see game moving forward.

“Nothing’s hit us yet,” said Aguilar. “It really kind of depends on sort of how far it goes because, you know we’ve kind of had this on-again, off-again tariff situation, but I’ve been in contact with our suppliers.”

As for the vital components needed for the perfect “cold one”, many breweries have had to rely on imports to get their business to where it is today. Imports for components like the aluminum needed for cans, as well as for the malt, grain, and hops essential for every beer.

For some, there’s potential for a harsh reality ahead.

“There are breweries that unfortunately aren’t going to really make it out of this phase of what our economic crisis looks like,” said Aguilar.

Fortunately for him and his team at the Downtown Fresno staple, Aguilar says 98% of what goes into their beer; the malt, grain, and hops, are domestically sourced. But still, there’s no way around having to import the aluminum for canning.

“There’s not a lot that is sourced in the United States. And so, it comes from other countries, mainly China. Canada is actually a pretty big import partner for the United States for aluminum as well. So, there is the potential that we could see some increases in the future,” he said.

With Tioga’s current buying power and contracts, Aguilar says thankfully they’re locked in with a lot of pricing for the rest of the year. However, for those small or upcoming operations, those are the ones he says could feel the brunt of it, and sooner.

“It’s very realistic to see a 10%-15% increase on a lot of different things that are just buying pallets at a time,” he said.

While it’s an uncertain time for many in the business, Aguilar says it’s as important as ever to show support to local breweries or taprooms – whether it’s them, their Downtown neighbors, or others in the Central Valley.