SALT LAKE CITY — Craft breweries across Utah are grappling with rising costs and economic uncertainty as new tariffs imposed by the Trump administration ripple through global supply chains. The impact is being felt acutely at Kiitos Brewing in Salt Lake City, where efforts to innovate with rare ingredients are now colliding with steep import fees and material price hikes.
Kiitos Brewing recently made headlines by becoming only the second brewery in the world to craft a beer made entirely from fonio, a drought-resistant grain grown in West Africa. The resulting brew is nearly translucent with distinctive flavors of lychee and white grape — and it comes with a premium price tag.
“This is the most expensive grain we’ve ever purchased,” said Kiitos president and CEO Andrew Dasenbrock. “And the price we were originally quoted may not hold by the time it arrives.”
The unpredictability is due in large part to tariffs enacted in April, when President Donald Trump levied duties on goods from about 90 countries. While some products have since received exemptions or postponements, the overall impact on supply chains remains volatile. Dasenbrock said this instability makes it nearly impossible to predict production costs.
“Day by day, it’s 10%, it’s 50%, it’s 1,000%—then it’s back to 10%,” he said. “It’s virtually impossible to plan in an environment like that.”
At Salt Lake Brewing Co. and Top of Main (formerly Wasatch Brewing), similar concerns are mounting. Director of brewing operations Nils Imboden said he immediately began assessing the implications of the new tariffs, particularly for agricultural products. His breweries consume more than 10,000 pounds of barley each month and sell approximately 50,000 pints of beer.
Although most of the barley used is sourced from Idaho and currently exempt from tariffs, Imboden said the lack of clarity is troubling. “Barley is exempt right now, but who knows how long that could last?” he said.
Brewers like Dasenbrock and Imboden rely on a global network for their ingredients, including hops from Germany, vanilla from Mexico, and limoncello from Italy. As tariffs inflate import costs, the creativity that defines craft beer is being threatened. Specialty brews such as Kiitos’ Vanilla Nut Cream Ale and Limoncello Sour may become cost-prohibitive.
In addition to ingredient costs, packaging is another area where brewers are seeing increased pressure. Most aluminum cans used in U.S. breweries are imported from Canada, a country now subject to a 25% tariff under the administration’s trade policies. Dasenbrock estimates that the cost of cans has already increased by 10% to 20%, potentially adding up to $4,000 more per shipment.
While canned beer makes up the majority of Kiitos’ sales, it also delivers the slimmest profit margins. “The cost of the aluminum can, lid, label, and labor — it all adds up,” Dasenbrock said.
Salt Lake Brewing Co. faces fewer challenges on that front, as its beer is primarily sold in taprooms and restaurants. However, state regulations require any beer with an alcohol content over 5% to be canned rather than served on tap, limiting flexibility. Both Imboden and Dasenbrock agree that broader keg distribution would alleviate some of the financial burden — a change that would require legislative action in Utah.
According to Michael McCullough, an agribusiness professor at California Polytechnic State University who specializes in beer economics, tariffs are likely to drive prices higher across the board. “Increased prices are a given,” he said, noting that brewers with limited storage space or inability to buy in bulk are particularly vulnerable.
“We don’t have a warehouse to stockpile ingredients,” Imboden added. “We bring things in as we need them. We’re at the mercy of the market.”
As costs continue to rise throughout the production chain, breweries are left to decide whether to absorb the impact or pass it on to consumers. McCullough said history shows where that burden typically lands. “Have you ever seen the price of beer go down?” he asked.
Both Imboden and Dasenbrock are weighing their options. While they hope to avoid raising prices or scaling back their specialty offerings, ongoing volatility may leave them with no choice.
Still, McCullough remains optimistic about the industry’s future. “We’re always going to drink beer,” he said. “The question is: what kind of beer will we be drinking?”
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