A Manitoba winemaker said he may have no choice but to raise the price of raising a glass of his drinks as problems in the global supply chain continue to pressure his operation.
Doctor Shrug Beverage Company Owner Willows Christopher said the same supply problems that are causing reports of empty shelves and rising prices for consumers are also affecting local producers like him.
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“The shortage has spread to just about everything,” Christopher told 680 CJOB on Monday.
“Hopefully things will correct themselves and go back to normal because I don’t know how much more of this kind of thing it can take to manufacture.”
Supply chain shortages
Global shipping disruptions, from container shortages to shipping delays, have recently prompted retailers to warn consumers to start Christmas shopping early.
Labor shortages, a lack of shipping containers, an increase in online shopping, a shortage of semiconductor chips and clogged ports in many regions of the world are among the factors causing the problems, experts say.
Shrugging Doctor makes a wide variety of adult beverages, including ciders, wines, vodka sodas, and mead.
Because many of Shrugging Doctor’s products need to sit for a year or more before hitting the shelves, Christopher said the current shipping issues haven’t affected his business much yet.
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But he said he worries he will have to raise the prices of the drinks he is making now.
“It’s starting to really affect us now,” he said.
“I grew up in Winnipeg. I don’t want to pay $ 30 for a bottle of wine. But I mean, what do you do?
Consumers experience delays, higher prices due to supply chain tension
He said the price of wine bottles has skyrocketed 20 to 30 percent, corks have doubled and there is a shortage of aluminum cans.
Shipping issues have also meant that their supplies are not only more expensive, but also take much longer to arrive.
He said orders that used to take a couple of weeks are now taking months.
And to make matters worse, Christopher said the drought conditions Manitoba saw last summer mean that even the local supplies he buys – fruits like raspberries, blueberries and strawberries – are up to four times more expensive.
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“If prices don’t go down again, then yeah, I guess we have to raise prices, but I’m trying to avoid that … if I can.”
But the pandemic has not been all bad, Christopher said.
He said the push to buy local products has led to a marked increase in business through farmers markets and home delivery, something he sees as a benefit to both producers and consumers during the chain crisis. of supply.
“I think there has been a big change in people who have realized that if they don’t support local businesses, there won’t be any local businesses,” he said.
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“Being able to go to a farmers market and buy products from local manufacturers not only helps local businesses, but it also helps the consumer get a better product faster.”
Last week, the International Monetary Fund warned that supply chain disruptions will likely mean “more difficult short-term prospects” for advanced economies, and cut its forecast for global economic growth for the rest of the fiscal year.
Canadian Deputy Prime Minister Chrystia Freeland said the federal government is watching the situation “very, very closely” after meeting with US lawmakers last week.
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“In terms of Canada, we are definitely aware of the supply chain problems in the Canadian economy. We are monitoring the Canadian supply chain and ports very, very closely, ”he told reporters Thursday.
“Reigniting an economy is uneven and that natural inequality is exacerbated by the fourth wave of the coronavirus. We have to be realistic about it, aware of that, but I think we can also have a very confident perspective on Canada’s economic resilience and on our economic recovery. “
– with files from Amanda Connolly
Product shortages, delays persist due to supply chain issues around the world
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