Breweries NAICS 312120

Jun 13, 2025 - Double Tariff Trouble

• On June 4, President Trump raised tariffs on US imports of steel and aluminum from 25% to 50%, impacting industries that rely on the metals to package their products. In an update to members, the Brewers Association noted the aluminum tariffs will hit their industry particularly hard due to its reliance on aluminum cans to package most beer (approximately 76% of all US packaged beer comes in cans). The BA noted that while small brewers typically source cans domestically from domestically rolled can sheet, some of the raw aluminum used to make US can sheet is imported, mostly from Canada. The exception to the higher tariff rate is the UK, where Trump held the line at 25% until at least July 9, while the two countries negotiate a trade deal. Aluminum prices have already increased since Trump imposed a 25% tariff on aluminum in March, per the BA.
• A new study has found polyfluoroalkyl substances in beer brewed in the US, the Brewers Association reports. The study – Hold My Beer: The Linkage between Municipal Water and Brewing Location on PFAS in Popular Beverages – focused on areas of the country where PFAS compounds are found in high concentrations in drinking water. Due to their “forever” nature, these chemicals can easily be transferred into beer if they are present in a brewery’s water source. According to the study, “approximately 18% of breweries operating in the US are located within zip codes served by public water supplies with detectable PFAS in drinking water.” Notably, perfluorosulfonic acids, particularly PFOS, were frequently detected, with PFOA or PFOS above the EPA’s Maximum Contaminant Limits in some beers. Some of the highest PFAS levels and most chemically diverse samples came from beers brewed in North Carolina.

• Beer doesn’t enjoy the same price elasticity as other alcoholic beverages like vintage wines or top-shelf whiskies, with beer drinkers balking at rising prices, The Wall Street Journal reports. Breweries must keep a lid on costs and prices and innovate to justify price hikes. “Beer is [still] considered a commodity,” said Justin Catalana, CEO of San Francisco’s Fort Point Beer Co., adding “People talk about a six-pack’s cost the same way they do a carton of eggs.” That wasn’t always the case. As craft breweries began to transform the industry, consumers gladly paid more for hazy IPAs and other novel brews. But as they proliferated the market became crowded and craft beers became grocery store staples, according to WSJ. Now, amid slumping sales, craft breweries compete for sales with increasingly popular nonalcoholic beverages, cannabis, and canned cocktails. Some breweries are expanding beyond beer to boost revenue.
• Beer sales are declining as health-conscious consumers seek out non-alcoholic options, the market for cannabis-infused beverages grows, and new tariffs on aluminum for cans and other key inputs cause brewers to raise prices, The Street reports. As a result, small breweries are struggling. In April, Cotton House Craft Brewers announced it would closing, and any combination of these factors could be a part of the reason, according to The Street. The popular family-owned brewery in Cary, North Carolina filed for Chapter 11 and is seeking to restructure. While craft beers had a big moment starting in the 1990s that exploded into the 2000s, production and sales have slumped in recent years. Looking ahead, Sales for the US breweries industry are forecast to grow at a 1.77% compounded annual rate from 2025 to 2029, slower than the growth of the overall economy, according to the Interindustry Economic Research Fund.