Alicia Acuna reports on the causes of the shortfall, how banks and companies are reacting.
Keurig Dr. Pepper is arguably the latest victim of coronavirus-related product deficiency.
In a statement from Monday Released on all of its social media platforms, the company assured its loyal consumers that it was “working on” redistribution of shelves with all flavors of soda, and instructed them to “hang on tight!”
“We are doing everything we can to get it back in your hands,” the company promised. “That means we work with our distribution partners to maintain shelves nationwide while ensuring the safety of our employees.”
KEURIG DR PEPPER REVENUE grows on higher cafe, liquor sales
According to a CNN report on Tuesday, the low inventory was the result of increased demand for the drink, because Keurig Dr. Pepper notes that sales “have been steadily increasing over the last four years.”
At the end of July, the Massachusetts-based company reported that sales of packaged beverages grew 6.2% to $ 1.39 billion in the second quarter, driven in part by new products under the brands Canada Dry and Dr. Pepper.
At the same time, the demand for aluminum cans has grown. Although the reported material used for aluminum can production is not in short supply, the sector was not ready to meet the growing demand.
While breweries have increasingly shifted to the use of cans in recent decades – with beer sold in cans accounting for 50% of all beer sold in 2010 and 60% in 2019 according to the National Beer Wholesalers Association – another factor is the introduction of alcoholic sparkling seltzers such as White Claw.
In a statement to USA TODAY last week, the Aluminum Association reported that the beverage manufacturing industry has an “unusual demand” for cans “prior to and especially during the COVID-19 pandemic.”
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“Beverages in easy-to-take home packages such as aluminum cans are currently popular, and beverage company employees are doing everything they can to ensure that store shelves remain fully in stock,” the American Beverage Association told CNN.
Although it is not yet clear if other soda brands would be affected in similar ways, Coca-Cola also declined to comment.
