U.S. Trade Tensions Lift Stray Dog Brewing’s Can Costs to 23 Cents

An Ottawa brewery says the cost of aluminum cans has become a growing problem as trade tensions tied to the United States continue to push up packaging prices in Canada.

Stray Dog Brewing told CBC in a report published Tuesday that the price it pays for a can has risen to about 23 cents from roughly 19 cents. The cost of each lid has also increased, to about 6 cents from 4 cents. The brewery said those changes are adding nearly C$1,000 to its monthly expenses.

For a small brewer, that kind of increase can move quickly from a line item to a broader business problem. Beer sold in cans depends on a steady flow of containers and lids, and even a few cents of added cost on each unit can build into a significant burden over thousands of cans. Smaller breweries usually have less room than large beverage companies to absorb those increases, and they often have less leverage when negotiating with suppliers.

The pressure comes from a trade dispute that is reaching deep into the packaging supply chain. What begins as a tariff issue at the metal or manufacturing level can end up affecting a neighborhood brewery that has no direct role in trade policy but still must buy cans every week to keep production moving. In that way, the dispute is not only about raw materials. It is also about how higher costs travel through distribution, packaging and retail pricing.

CBC reported that other breweries are also concerned about the situation and fear a possible double hit if suppliers linked to the U.S. market continue to pass along higher costs. That concern reflects a wider uncertainty across the industry. Brewers do not only have to manage prices that have already gone up. They also have to guess whether the next order will cost even more, which can make production planning harder.

The issue matters beyond one brewery in Ottawa. Aluminum cans are a core package format across the beverage business, including craft beer, ready-to-drink cocktails, hard seltzers and some wine products. When can and lid prices rise, producers may have to rethink margins, promotional plans and inventory levels. In some cases, higher packaging costs can also affect decisions on other purchases, including grain and hops, because breweries have to decide where to absorb the pressure and where to cut spending.

That can create difficult trade-offs. A brewer may try to avoid raising prices for drinkers, but doing so means finding savings somewhere else or accepting a smaller margin. If costs keep climbing, businesses may have to adjust retail prices, buy less packaging at a time, or delay orders for ingredients and other supplies. Those responses can ripple across the sector, especially among independent producers that already operate with tight budgets.

The cost problem is especially sensitive for craft brewers because canned beer has become one of the main ways they reach stores, bars and direct customers. Cans are lighter than glass, easier to ship and widely used for mixed packs and seasonal releases. That makes them practical, but it also means brewers are highly exposed when aluminum packaging becomes more expensive.

Recent years have already left many small beverage producers dealing with higher costs for labor, ingredients, freight and utilities. Packaging inflation adds another layer to that strain. For breweries, the result is not just a higher bill from a supplier. It can affect how much beer to produce, when to buy raw materials and how aggressively to compete on price in a crowded market.

In Stray Dog Brewing’s case, the increase from about 19 cents to 23 cents per can, and from 4 cents to 6 cents per lid, shows how small changes on paper can become meaningful operating costs in practice. With trade-related uncertainty still hanging over the supply chain, breweries are watching closely to see whether the next round of packaging orders brings any relief or another increase.