Absolute Numbers LLC

Supply chain disruptions have become a significant challenge for craft beverage businesses, from breweries and distilleries to coffee shops. These disruptions can lead to increased costs, delays, and inventory shortages, ultimately impacting your bottom line. The unpredictable nature of supply chains means it's essential for business owners to stay informed and proactive to minimize the effects on their operations. Here are some key areas of disruption in the industry and strategies to help you manage them effectively.

1. Breweries

Raw Material Shortages:

Breweries are especially vulnerable to fluctuations in the availability of key ingredients like hops and malt. These shortages can increase costs and lead to production delays, affecting both your product quality and availability.

Packaging Issues:

With increased demand for canned and bottled beer, many breweries are facing packaging shortages. Limited supplies of cans and bottles can create bottlenecks in fulfilling orders and delay shipments to customers.

Strategy for Breweries:

To minimize the impact of these disruptions, consider diversifying your sources of raw materials. Local suppliers can provide a reliable alternative, reducing your dependency on volatile international markets. Additionally, explore alternative packaging solutions or build relationships with multiple packaging providers to ensure steady supplies.

2. Distilleries

Ingredient Availability:

Distilleries often face challenges in sourcing grains and botanicals, with price fluctuations and limited availability posing significant hurdles to production.

Regulatory Challenges:

International import/export regulations can cause delays and add layers of complexity to your supply chain. Changes in tariffs or trade policies can further disrupt your access to essential ingredients.

Strategy for Distilleries:

Building relationships with multiple suppliers can create a safety net, ensuring you have access to key ingredients even when disruptions occur. Maintaining emergency stockpiles of ingredients will also help mitigate production delays when supply chain hiccups arise.

3. Coffee Businesses

Supply Chain Volatility:

Coffee roasters and shop owners often deal with volatile supply chains due to factors like climate change and political instability, which affect coffee bean quality and pricing. These issues can lead to fluctuations in availability and increases in costs.

Shipping Delays:

International shipping challenges, such as port congestion and delays, can impact inventory levels, leaving coffee shops with insufficient stock to meet demand.

Strategy for Coffee Businesses:

Investing in direct trade relationships with coffee growers allows you to have more control over quality and price while supporting sustainability. Additionally, diversifying suppliers and building relationships with local or regional growers can reduce the risk of international shipping delays.

Proactively Managing Your Supply Chain

Managing your supply chain effectively is essential to safeguarding your craft beverage business from costly disruptions. While diversifying suppliers and building relationships with local producers are important first steps, having the right financial systems in place is equally critical.

We specialize in helping craft beverage businesses implement financial strategies that improve cash flow, manage rising costs, and prepare for future uncertainties. From cost analysis to inventory management, our services ensure you have the financial insight needed to stay ahead of disruptions.

Let us help you secure your business’s future and maintain financial stability despite the challenges of a fluctuating supply chain. Contact us today to explore how we can assist in optimizing your operations and navigating these uncertain times.