Price of a 24-pack of beer could increase up to $5 due to tariffs, says northern Ontario craft brewer

The cost of a 24-pack of beer could increase $3 to $5 because of 25 per cent tariffs on aluminum exported to the United States, according to a craft brewery in northern Ontario.

Alex Inman, operations manager at Manitoulin Brewing, said one of the main suppliers for beer cans in Ontario moved its operations to the U.S. last year.

"So we're now buying those cans back from there with the tariff added on top," Inman said.

Like many breweries, aluminum cans are the main way Manitoulin Brewing distributes its beer, Inman said.

He added there's a chance beer can production could quickly move back to Canada, which would help ease those costs and create Canadian jobs.

In addition to increased costs for cans, Inman said one of the main ingredients in beer — hops — is often imported from the U.S.  

"There are only four major ingredients in beer: grain, hops, water and yeast. And we can source three of those four pretty easily here in Ontario."

Many of those added costs will need to be passed down to customers since craft breweries operate on thin margins, Inman said.

"Personally I feel there's only so much people want to pay for beer," he added.

Pulling American liquor from store shelves

The LCBO's decision to pull American liquor off the shelves also isn't beneficial for small breweries, Inman said.

That's because large American brewers such as Anheuser-Busch and MolsonCoors all have Canadian operations where they brew their beer for the Canadian market.

"All that was pulled was the bourbons and California wines," Inman said. "It didn't even impact the ready-to-drinks like people might expect."

Canadian distilleries could benefit from that decision though.

Mireille Morin, co-owner of the Rheault Distillery in Hearst, Ont., said that could have an impact on their LCBO sales in the coming weeks, by giving their vodka more visibility.

Tariffs won't have a major impact on her costs, although Morin said they lost their bottle manufacturer in British Columbia and will need to look for a new Canadian option.