Supply issues for hugely popular beer ahead of Christmas

International supply chain issues have impacted stock of a hugely popular beer brand, with Australian retailers hit with order limits ahead of Christmas.

Stocking up on one of the world’s most popular beers for Christmas Day could prove a little more difficult this year, with one beloved brand being hit by supply issues.

For many Aussies, there is nothing more relaxing on a hot summer’s day than sipping on an ice-cold Corona, garnished with a wedge of lime.

However, stock challenges mean getting your hands on the popular beer could prove more difficult than usual.

Carlton & United Breweries (CUB), which imports the beer brand from Mexico, is one of Australia’s largest brewing companies.

Along with Coronas, the company also supplies popular brands Great Northern, Carlton Draught and Victoria Bitter.

Unfortunately, ongoing international supply and shipping issues means CUB has been facing Corona stock challenges.

Supply chain issue have impacted imports of Corona beers to Australia. Picture: Derek Moore

An email obtained by The Australian, sent between beer sales representatives, revealed the company had introduced a maximum order limit for the stock.

“I have just been advised this morning that unfortunately CUB are having stock challenges on Corona,” the internal memo stated.

“Up to last week they had felt that our … stocks were fairly safe, however they are facing some massive shipping challenges along with ongoing challenges at the Mexican brewery.

“CUB have now placed ALL customers nationally a maximum order limit on Corona.”

CUB sales director Peter Bingeman said the company would be distributing supplies of Corona beers “fairly” across its Australian retailers.

“Corona is brewed in Mexico and the international supply chain, including shipping, has been impacted by Covid,” he said in a statement to news.com.au.

“However we expect supply will continue to arrive in Australia in the lead-up to Christmas and we are distributing it fairly to retailers across Australia to help limit shortages.”

Recently, CUB had to limit the sale of some of its most popular canned beer due to aluminium shortages.

Some selected BWS stores introduced a two-carton purchase limit for a number of products, including Pure Blonde Ultra Larger cans, VB cans, Melbourne Bitter cans, Carlton Dry cans, Carlton Draught Larger cans and Great Northern Super Crisp cans.

Endeavour Group told news.com.au BWS was now in the process of removing these temporary limits.

“We have over 1000 different beers in our stores, and our cool rooms are filled with stock ahead of Christmas, so customers can be rest assured they will be able to enjoy their favourite brews this summer,” an Endeavour Group spokesperson said.

Selected BWS stores are rolling back temporary purchase limits for some beer cans. Picture: NCA NewsWire/Steven Saphore

CUB made it clear they were not experiencing shortages on their popular domestically brewed labels.

“We are not facing shortages of kegs or our most popular domestically brewed stubbies or cans. To be clear, we are not facing shortages of VB, Carlton Draught, Great Northern, Carlton Dry or Pure Blonde,” Mr Bingeman said.

“Recently we had limited the sale of our most popular canned beer for a short time due to aluminium shortages, but those shortages have been successfully managed.”

Wooden pallet shortage affects brewer

Rival brewing company, Lion, has also been impacted by ongoing global supply chain issues, which have created a wooden pallet shortage across Australia.

Tooheys, XXXX Gold, Iron Jack, Hahn and Furphy are just some of the popular beer brands produced by Lion.

The pallet supply issues mean the company has had to prioritise production of its top-selling pack SKU’s (stock keeping units), meaning some of the smaller pack SKUs may go out of stock.

For example, some 10-pack cans of particular brands may not be available, though there should be other pack formats of the same brand, such as six-packs or 30-packs, in stock.

Lion sales director Warwick Parks said the company was working hard to secure additional pallets.

“Lion, like many other manufacturers and distributors across Australia, is currently being impacted by a number of supply chain challenges, including an industry-wide shortage of hardwood pallets,” Mr Parks said.

“We recognise this is a busy and important time of year for our trade customers and we are doing everything possible to minimise disruptions to supply and delivery.

“We are working around the clock to source alternatives and secure additional pallets.”

Champagne and spirits hit with purchase limits

Some champagne and spirits are also being impacted by the ongoing global supply chains, forcing purchase limits on some items.

Dan Murphy’s, one of Australia’s largest alcohol retailers, has warned of “stock constraints” on some imported products and has limited the number of bottles of bubbly customers can buy in one go.

Endeavour Group, which owns Dan Murphy’s and BWS, now has a 12-bottle per person per day limit of French champagne brands including Mumm, Pol Roger and Moet.

Dan Murphy’s has introduced purchase limits on some French champagne brands.

“We are seeing some supply chain constraints due to the pandemic, but we have worked closely with our supply partners since the first lockdowns of 2020 to keep stock on shelves and we continue to do so,” an Endeavour spokeswoman told news.com.au earlier this week.

“We have implemented mitigation strategies in the way we manage our supply chain logistics to ensure more lead time when importing products.

“While there are some stock constraints on imported products, namely liqueurs and certain spirits, as well as some champagne brands, we don’t expect any major disruptions for customers leading into Christmas.”

Endeavour said it has seen “strong sales” of local brands and it encouraged shoppers to consider Aussie alcohol.

Coles, which owns Liquorland and First Choice, told news.com.au it also had purchase limits on some champagne brands.

But the retailer insisted it wasn’t experiencing supply issues and it was standard practice around busy periods.

“We’ve worked with all our suppliers to prepare for Christmas early this year, so our customers can enjoy their favourite drinks with their festive foods,” a Coles spokeswoman said.

Supply chain issues could stretch into 2022

The impacts of the Covid-19 pandemic on global supply chains will likely continue well into 2022, as the global economy struggles to snap back to life after two years of lockdowns and border closures.

Despite the pandemic seemingly being part of life now, by some measures the ongoing disruption to supply chains is significantly worse than it was this time last year.

The pandemic had a major impact on global supply chains. Picture: NCA NewsWire/Bianca De Marchi

While Australia has so far been spared the worst of the global supply chain issues and the ongoing energy crisis, several major retailers have warned households to get their Christmas shopping done earlier rather than later.

RMIT logistics expert Vinh Thai recently shared his concerns about the impact of supply chain issues on Australian consumers.

Professor Thai said that big delays and more expensive consumer goods are “a big possibility” as we head toward Christmas.

Australia’s own internal supply chains are also expected to face hurdles in the run-up to the holiday.

Australia Post CEO Paul Graham is bracing for “significant challenges” as the postal service faces the busiest Christmas season in the history of the nation.

This has prompted Australia Post to undergo a hiring surge, employing 4000 temporary workers in an attempt to ensure that Australians get their presents on time.

With everything from the European energy crisis to further lockdowns continuing to impact global supply chains, the issues that businesses and consumers face are far from over.

Some experts have suggested it could be as late as the middle of the decade before the issues are finally resolved.

– with Benedict Brook and Tarric Brooker

Originally published as Supply issues for hugely popular beer ahead of Christmas