New Costs, New Packaging: Part 1 – Inflation's Impact on Beverage Supply Chain and Packaging Decisions

Given the ongoing challenges around supply chains and inflation, reassessing cost structures will become more critical for beverage companies in order to maintain profitability moving forward. In this five-part series, we will examine some of the key challenges and opportunities for beverage companies surrounding inflation, packaging, and emissions reductions.

While beverage companies may not be able to influence the cost of key inputs such as energy or commodities, operational decisions can help mitigate the impact of inflation. One area in particular where we believe there is an opportunity for the industry to seek cost savings is in packaging. Packaging decisions are also critical components of beverage companies’ greenhouse gas emissions (GHG), and we see increased opportunities to align cost controls with improved environmental sustainability. 

Status quo strategies around packaging will need to be reassessed, with a focus on alternative formats, recycling, route-to-market, and circular/reusable packaging. This report lays the groundwork for deeper discussions on these topics, which will be explored in a series of reports to follow.