Please note that below is a shortened excerpt of the Q1 2025 supply chain update report. View the full version here.
The beverage supply chain faces ongoing uncertainty in early 2025, with trade policies, energy costs, and commodity pricing shaping market conditions. The new administration’s tariff decisions and agricultural trade policies will directly impact costs and availability.
- Grain Markets: Farmers will adjust planting strategies amid shifting trade policies.Canadian barley exports remain strong due to relative size, while U.S. wheat and corn markets face uncertainty tied to negotiations with China and Mexico.
- Energy & Freight: Diesel prices have stabilized at $3.50/gallon, but potential supply chain disruptions, tariffs (10% postponed Canadian) and labor negotiations have driven up freight rates by 5% this year.
- Aluminum & Packaging: LME aluminum prices have climbed to $1.19/lb, largely due to tariffs on all imports and LME plus Platts Midwest is pushing prices upwards to $1.50+ range for North America. Paper packaging costs continue to rise, while glass demand declines, offsetting some production savings from lower energy prices.