Puebla craft beer brands seek to recover sales and jobs

Puebla, Pue. The president of the Puebla Brewers Association (with heap), with 35 brands, Alberto Soto Fuentes, reported that the reopening of bars and clubs since mid-October will make it possible to recover 50% of lost sales and 40% of jobs cut in production and distribution, as a result of the closure of those businesses for more than a year due to to the Covid-19 pandemic.

He indicated that the producers were waiting for such an announcement from the authorities, since businesses in these sectors are the main buyers of craft beer, because the blockade of convenience stores by large brands is still ongoing, while in self-service chains they do not see viable sell because they ask for large quantities, which they cannot produce.

In an interview with The Economist, stated that in two months the lost jobs can be recovered, since before the pandemic they generated 500 direct ones among the partners.

He stressed that without exception all the small beer entrepreneurs were almost unemployed as they did not have distribution channels, since the restaurants, which are the ones that buy the most, limited orders.

He recalled that since 2017 they had been generating 10 million liters per year, with an average growth of 15%, an amount that has been lost since 2020 due to the pandemic, coupled with the fact that the supply contracts had to be stopped.

In this vein, he trusted that the market could recover, for which they have seen the willingness of the establishments to reactivate orders, but it will take the rest of this year to achieve it, because they will buy as demand increases.

“The average consumption is three beers, so those who are frequent customers know that despite the high cost they pay, since each bottle costs between 40 and 45 pesos, in return they receive a quality product,” he explained.

However, Soto Fuentes commented that brands are also having a hard time producing so far this year, because raw materials such as barley, hops and yeast have become 30% more expensive due to shortages.

He recalled that raw materials are imported from the United States, Germany and South America, since in Mexican territory they are monopolized by large companies through contract farming.

Soto Fuentes stressed that the price of craft beer will remain unchanged, but in 2022 there could be a slight increase if the cost of raw materials is not lowered.