Colorado’s craft beer scene is running into a wall of rising aluminum costs, and it is not just a minor bump. Surging prices for cans, shipping and tariff-related fees are making packaging and expansion painfully expensive for small breweries from Denver to Golden. Owners say the spike in inventory, hops and packaging costs is forcing them to rethink suppliers and growth plans, which could mean fewer cans on store shelves and slower distribution for taproom favorites in a state that prides itself on its craft beer culture.
Local Brewers Sound The Alarm
Alyssa Hoberer, co-owner of Full Frame Beer and Coffee at 20th and Lawrence in Denver, and Abby George of Barrels and Bottles in Golden, told Denver7 that inventory costs have jumped enough to squeeze already thin margins. George said the higher bills are pushing her to reevaluate imported hops and other suppliers. Both owners said they are trying to keep customer prices steady, but the extra costs on the back end are making any talk of expansion feel a lot riskier.
Record Midwest Premium Pushes U.S. Price Higher
The sticker shock is not limited to the Front Range. Industry pricing data show a broader crunch in the aluminum market. S&P Global Energy (Platts) reported that the Platts U.S. Aluminum Midwest Premium topped the 1 dollar per pound mark on January 23, a milestone that tacks a sharp regional surcharge onto global metal prices. That premium reflects delivery, logistics, and tariff costs that all feed into the final price American buyers, including breweries, have to pay.
Canning And Distribution Plans Stall
For many small breweries, the dream is straightforward: move from serving pints over the bar to getting their beer into cans on grocery and liquor store shelves. Right now, that dream is on ice. Owners told Denver7 that the jump in aluminum costs makes canning equipment, minimum order requirements and the cans themselves too expensive to justify. Ambitions to grow beyond taproom-only sales are being pushed back while they wait for input prices to calm down, so the expansion wave that helped fuel Colorado’s craft beer boom over the past decade is losing momentum.
Scale And Stakes For Colorado Beer
All of this is happening in one of the country’s craft beer heavyweights. Colorado is home to hundreds of craft breweries, and the scale of that industry raises the stakes. The Colorado Brewers Guild notes that the Brewers Association ranks the state fourth nationally, with roughly 456 craft breweries and a multi-billion-dollar economic footprint. When aluminum costs spike, the ripple does not stop at the brewery door; it spreads through distributors and into neighborhood liquor stores.
What Brewers And Experts Say Could Help
Jack Buffington, supply chain director at the University of Denver, told Denver7 that the current squeeze comes from a mix of tariffs, tight global supply, and elevated energy costs. He said meaningful long-term relief would likely require more domestic aluminum production, lower energy prices, and stronger recycling efforts. Buffington noted that the premium and related duties have created a surcharge for U.S. buyers that is unlike what they have seen before. Brewers point out that those are structural fixes that will take time, which leaves them to wrestle with higher day-to-day costs for the foreseeable future.
Bottom Line
For now, Colorado brewers are trying to walk a tightrope, keeping regulars happy while staring down bigger raw material bills and the risk of passing those costs on. If aluminum prices and tariff-driven premiums stay elevated, the state’s beer scene could lean back toward taproom-focused operations and slower distribution growth. Owners say they are banking on policy shifts and stronger recycling to ease the pressure before they have to raise prices at the bar or cut back on what they pour.
