Craft Breweries Emerging from COVID-19

Like many industries, the craft brewery business has suffered from Covid19. As many parts of the country begin to reopen and indoor gathering rules are relaxed the industry is finding casualties that just couldn’t survive, but also a surge in creativity and innovation.

Many breweries have taprooms or restaurants that were closed for weeks and even months during the pandemic. Waiters, servers, cooks, bartenders were furloughed or terminated because there was no income/revenue to support them. Others forged ahead and supported their employees the best they could with PPP funds and other resources from the CARES Act.

No industry in the U.S. has been untouched by the economic scourge of Covid19. Record unemployment levels and a full-blown recession are still challenging small businesses like independent, family-owned, regional craft breweries.

Unlike major breweries, independent craft breweries typically don’t have large cash reserves or production quantities that can offset these challenges. Like most small businesses these breweries view their employees as a family which makes decisions even more difficult against economic realities.

The Brewers Association has conducted a series of surveys/polls of their membership during and after “stay at home” orders by state governors. Economist Bert Watson has been analyzing and interpreting the data for the month of May:

“In terms of volume growth, results are similar to what we found in early April, with a weighted estimate of total brewery sales down 30.5%. The median brewery respondent has sales that are down 50%. Note that while we had representative participation, the volume above 100,000 was far less than it is as a percentage of the full data set, so accounting for that would likely improve the total number, and I think it’s likely that if we use this survey to build a broader estimate, the total craft is likely down more like 20-25%…….Although we haven’t yet reached the three-month threshold we asked about in that survey, there has yet to be a massive surge in brewery closures. Yes, some breweries have closed, but to date, the vast majority of breweries have managed to stay in business.” (3rd Covid19 Impact Study-850 craft breweries participated)

Few small businesses can survive reduced sales of 25-50%, but through perseverance, loans, strong business plans, and creative strategies the majority have been able to tread water and are starting to float again. There are more than 8,000 craft breweries in the U.S. employing nearly 60,000 Americans. In 2018 the economic impact of craft breweries on the U.S. economy was $79B. The industry provides jobs, tax revenue for the U.S, states, and local governments.

During the pandemic closing tap and tasting rooms was a big blow, but many brewers got creative and produced hand sanitizer and drinking water for local essential industries and first responders. Others pivoted to curbside pick up and delivery which has been allowed in many states.

Sales continue to lag but there’s cautious optimism as restaurants, bars, and indoor dining resumes. Many brewers have used this time to strategically plan for the future including their marketing efforts. Intentionally examining artwork, design, logos, and brand messaging. Creative packaging and labels that stand out from the pack are critical now more than ever.

At Century Printing and Packaging we have been answering the call for craft breweries and distilleries in terms of high-performance labels and packaging. We are investing in the industry and learning all we can about your printing and packaging needs. We have innovative products designed specifically for craft breweries. As a small, family, and locally owned business we understand just how challenging Covid19 has been for small businesses and the overall economy. Contact us today to discuss your unique printing and packaging needs!

Ben Waldrop
President
Century Printing & Packaging
Greer, SC 29651
800.344.7509

(Images: Unsplash & CP&P)

Coronavirus & Printing Labels

Our smartphones, tablets, TV’s, social media and the Internet are rolling out more stories and rumors about the coronavirus than we can absorb. At the epicenter in China, the virus has had a big impact on the label printing industry. Writing for LabelsandLabeling.com Yolanda Wang notes:

The outbreak of coronavirus pneumonia has hit China hard and is now spreading around the world. What are the implications for China’s label printing industry?

Firstly, before any company can resume work they have to demonstrate they have made preparations to prevent the spread of the epidemic. This includes providing face masks, disinfectant, sanitizer, and thermo-detectors. A serious shortage of face masks has led the price to triple in just a few weeks. All this adds to label converters’ production costs.

The second issue concerns employees. Most workers do not live locally and are heavily affected by restrictions on public transport. One label converter, Dongguan Sunway, has dispatched company buses to pick up employees directly from their homes. Even if staff do get to work, they may then face a 14-day quarantine period.

Xinxiang Honglian Printing, located in Henan province, resumed work on February 10. ‘Today, only employees with a normal body temperature, living in a place without a virus outbreak, and without travel history and contact with Hubei people, are allowed to enter our workshop,’ says Huang Changjun, general manager of Honglian. ‘This means our current production is only half what it was before the virus outbreak.’

We live in a global economy and China supplies millions of diverse goods, services, and products that were previously supplied in the States by American companies. Among them, labels and packaging. It’s understandable when you are running thousands of labels and packaging that you might seek price as the deciding factor. However, when a global pandemic disrupts supply chains, shipping, and production, companies need to make decisions that protect their bottom line and produce results on time.

American label printing and packaging companies are largely local and family-owned. They contribute to the local community’s tax base through employment and the manufacturer and sales of goods. They offer competitive pricing and produce high-performing, quality work. And they have a quick turnaround time on production and shipping in the U.S. In-country supply chain management and impeccable quality is what you will get when you use a U.S. printing and packaging company.

Hand sanitizer and disinfectant wipe producers could be in a bind as the virus continues to spread globally and in the U.S. Clear labels on products containing alcohol and other natural disinfectants need to withstand repeated usage without running, staining, or peeling. American label printing and packaging companies know how to get this done fast, within budget and with on-time shipping to the point of sale, or the distribution center.

At Century Printing and Packaging we recently had an “emergency order” for these products and were able to move fast and fulfill the order with one-day shipping. We specialize in label printing with the highest quality and standards. It’s why so many of our clients are return customers. We work with our customers seeking solutions that stick! Contact us today to ensure your product labels are done right and shipped on time!

Ben Waldrop, President
Century Printing and Packaging, Inc.
Greer, SC 29651
800.344.7509

Images: KIM HONG-JI/REUTERS Anna Earl on Unsplash