Dan Klasen of the Beverage Federation calls in to speak with Herlinda Heras on Brew Ha Ha, about the impact of impending tarrifs and more.
Dan Klasen is the founder and President of the Beverage Federation. He is calling from Milwaukee, Wisconsin, where he is based. The Beverage Federation
Herlinda asks Dan to explain the Beverage Federation’s work, and also for his opinion on the impending tariffs. They are a group purchasing organization to provide resources to craft brewers. Their goal is to gain purchasing power by buying in bluk on behalf of their members. They are a growing organization. Companies in the craft beer industry have been focused on lowering operating costs. Other industries have similar services.
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The Federation gets inquiries from operators across the country that have the same issues, for example, when the price of cans or other supplies increases suddenly. This has been a busy year and a lot of challenges today weren’t around a year ago. Everyone wants to avoid the potential impact to the consumer.
Three Things to Remember and Three to Forget
Dan told Herlinda three things to remember and three things to forget. There are a few things to do in the short term, 60-90 days. As far as what not to do, be wary of long-term contracts right now. Some breweries may want to do a bulk buy but Dan suggests thinking all the way through the consequences including warehousing. Be wary of suppliers who say they know how long these changes may last. Stay focused on what you do know, more in the 60-90 day frame.
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As for things to do, one is have alternative suppliers. It’s prudent to have back-up, including setting up an account and getting pricing. That’s what medium and large operations do, and it’s good practice for small businesses too. It is a hedge against a sudden price spike. Another good idea is to get two or three quotes for supplies over a certain amount, to make sure that you can see all options. The last thing to do is to talk to your suppliers and manufacturers. They will want to communicate what they know is coming. It is good to be ready for that, such as, changes in terms to keep the supply coming.
Membership is free, at Beverage Federation dot com. 🍻