By AppyHour Industry Insights
Rising tariffs and inflation are squeezing brewery margins. Learn how suppliers can adapt to cost pressures and strengthen relationships with breweries in 2026.
A Perfect Storm of Cost Pressures
After years of supply chain shifts, rising costs, and global uncertainty, the beer industry now faces a new kind of pressure — the margin squeeze. Brewing industry inflation and rising costs at nearly every step of the brewing and distribution process are reshaping how brewing companies, distributors, and vendors operate.
This year, it’s not just about selling beer — it’s about protecting earnings in a high-cost environment shaped by brewing industry inflation and ongoing market pressures.
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- Aluminum and Steel Costs: Tariffs introduced in 2024 have raised can and packaging costs by double-digit percentages. According to industry sources, aluminum prices have risen nearly 15% YoY, and are cutting deep into packaging margins.
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- Imported Equipment and Ingredients: Supply chain bottlenecks and global shipping rates remain unpredictable. The rising cost of imported brewing equipment, hops, and malt has forced many breweries to delay capital projects or scale down batch sizes.
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- Energy and Labor: Energy prices have steadied slightly from 2023 highs but labor costs continue to climb. Breweries are facing higher wages across logistics, production, and taproom operations thus making efficiency and automation more critical than ever.
For suppliers, this means a new kind of partnership dynamic: breweries are seeking partners who can help them weather uncertainty and deliver inventory.
How Tariffs Are Changing Brewery Economics
Tariffs have reintroduced cost volatility into a business that already runs on thin margins. Major players like Molson Coors and AB InBev have publicly cited tariff-related metal price hikes as key contributors to their revised forecasts this year.
Global giants can offset these shifts with volume, but smaller regional and craft breweries, don’t have that cushion. The ripple effect lands on partners who are now expected to:
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- Provide cost transparency and real-time pricing updates.
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- Offer flexible contracts that adjust to commodity ups-and-downs.
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- Help breweries identify domestic or alternative buying options.
Suppliers that help reduce exposure — through smarter sourcing, bulk purchasing programs, or local partnerships — are becoming invaluable allies.
Inflation’s Hidden Impact: Supplier-Brewery Relationships
Inflation doesn’t just raise costs; it reshapes trust.
Beer makers are prioritizing packaging-suppliers who communicate early and proactively address price changes. Gone are the days of last-minute price adjustments or limited transparency, now breweries expect suppliers to act as advisors.
Those who can frame conversations around shared cost management rather than price hikes will maintain stronger, longer-term relationships.
“I can handle higher costs if I know what’s coming — what I can’t handle is being surprised.”
How AppyHour Helps Suppliers Stay Ahead
At AppyHour®, we monitor the pulse of the BevAlc industry daily — and brewing industry inflation is one of the most common pain points we hear from our brewery network.
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- Track emerging pricing trends across regions and categories.
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- Identify which breweries are adjusting SKUs or production volumes.
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- Highlight cost-saving offers and promotions directly to engaged brewery audiences.
By connecting suppliers and breweries through real-time market intelligence, AppyHour turns inflationary pressure into opportunity — helping partners adapt, communicate, and strengthen collaboration.
Final Thought
The beer industry’s margin squeeze won’t disappear overnight. Inflation and tariffs are now part of the operating landscape. But suppliers who respond with transparency, agility, and insight will not only survive — they’ll stand out.
In 2026, the strongest supplier-brewery relationships will be built on shared data, not guesswork.
Next in this series: “Packaging Innovation and Consumer-Driven Flexibility” — how packaging trends are redefining supplier priorities.
