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Thursday, July 29, 2021

And You Thought a Toilet Paper Shortage Was Bad

 A year ago we were scrambling for TP and sanitizer. More recently, everything from computer chips to chicken wings to restaurant wait staff have been in short supply as the economy recovers and consumers ramp up their spending. Well, prepare for the Big One, especially in three states.

image from bestlifeonline.com

Alcohol sales were up during the pandemic because, you know, you had nothing else to do. People bought online and many wineries enjoyed a windfall of shipping orders, helping make up for the lack of visitors and retail store sales.

As bars and restaurants reopen, they also are buying alcohol again. Yes, there is a shortage of booze! It's not so much because it's not being made is large enough quantities, but producers can't get labels made, can't buy cans or bottles, there aren't container ships to get it to where it's needed, and then there's the three-tier system of distribution in the U.S. -- the producer to distributor/wholesaler (the middle man) to retailer. If any one of the three has a problem, the system breaks down.

That supply chain is broken, most noticeably in three states -- North Carolina, Ohio, Vermont. What these three have in common is state liquor agencies controlling the flow of alcohol to restaurants and retailers. And we all know how efficient and well-run gov't agencies are. 

You will see more bare shelves in restaurants, bars, and retailers in these three states, but others are feeling the pinch, too. This is expected to be a problem for the rest of this year and maybe most of next year.

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