From diversity at CBC to a brewery-led market hall with pet groomers, here are some happenings and announcements from around the industry. By BIG Staff
Researchers: High Costs Require Creative Solutions from the Brewing Industry.
Beverage analysts at Rabobank say that more inflationary pressures are yet to come for brewers. In its Rabobank Beer Quarterly, the researchers say that the beer industry faces a conundrum: Input costs are rising, but so are the inflationary pressures on beer drinkers—thus, simply raising prices could do more harm to beer sales than usual. Complicating the problem is the assessment that some of the inflationary pressures are not temporary “and will not disappear in the foreseeable future,” says beverages analyst Francois Sonneville. The recommendation is to explore a range of options, such as cost-cutting, adjustments to packaging mix, and hedging, as well as pricing. However, the report says, “accepting some level of margin compression may be necessary, or even advisable.” The full report is available to Rabobank clients at research.rabobank.com.
New Injection for Restaurant Revitalization Fund Remains Uncertain.
The U.S. House of Representatives approved $42 billion for the Restaurant Revitalization Fund (RRF), but its prospects in the Senate are unclear. In Washington, Roll Call reports that Senate Republicans are reluctant to support any new federal spending that isn’t offset by cuts elsewhere. The RRF was part of the American Rescue Plan enacted in March 2021, but the $26.8 billion in grants only went to about one-third of qualified applicants to the program. Businesses eligible for the grants included those that serve a significant amount of food and/or drinks on-site, including bars, brewpubs, and breweries with taprooms. The Independent Restaurant Coalition reports that 52 percent of businesses that applied for but did not receive grants say they will have to close in the next six months without additional support.