Corona & Modelo Prices Are Rising Due to a Unique Shortage

Hint: It has to do with the bottles.

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Due to supply chain issues, the maker of the Corona and Modelo expects to increase prices by up to 2% this year as shortages and other problems persist, Bloomberg reported.

Constellation Brands Inc., the largest beer import company in the United States, recently told its shareholders that the biggest driver of the price increase is a shortage of brown glass. The company also noted higher freight and warehousing costs caused by supply chain issues.

"We are diligently working to address the brown glass shortage that is acting as a headwind," Constellation CEO Bill Newlands told shareholders on Thursday.

Scott DeFife, president of the Glass Packaging Institute, told the Financial Times late in 2021 that the alcohol industry faces the same problems as many other facets of the economy. He noted that the supply chain issue is a result of labor shortages and decreased trucking capacities. During an interview on National Public Radio, he said that although American glassmakers "are still churning out plenty of bottles, there's an issue with logistics and "import congestion." 

The labor shortages have created a backlog at ports, which is specifically disastrous for the beer industry because  20% to 30% of bottles used in America are imported from Europe or Asia. Additionally, some glass production was halted to make vials for the COVID-19 vaccine.

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Caitlyn Hitt is Daria IRL. Don't take our word for it—find her on Twitter @nyltiaccc.