Government shutdown affecting businesses in Milwaukee
MILWAUKEE (WITI) — The impact of the government shutdown has trickled all the way down to Milwaukee’s Lakefront Brewery. Production of Lakefront’s seasonal beer has been stalled for the foreseeable future.
“Currently the recipe has been approved, but we’re still waiting on the label to be approved,” Matt Krajnak with Lakefront Brewery said.
Like every brewery in the country, Lakefront Brewery must go through the Alcohol and Tobacco Tax and Trade Bureau for label and recipe approval.
Lakefront had hoped to release two beers in November, but now, it looks like they’ll miss that deadline.
:I’d hope we wouldn’t have to scrap, you know, a release,” Krajnak said.
That could cost the brewery tens of thousands of dollars.
“I would guess every craft brewery in the United States right now is probably affected with this somehow,” Krajnak said.
Meanwhile, at Klement’s, the launch of new food items has been delayed.
“What may have been a January launch may not occur until June,” Jack Belke with Klement’s said.
However, what may be the bigger issue is the impact on commodities pricing. Without the government, no one is setting the daily price for meat.
“We’re not really sure where the meat prices are. Everything is locked in as of the day the government shut down,” Belke said.
Right now, commodities buyers are on a sort of honor system, and when the market reopens, consumers can expect some wild swings.
“It’ll take a few days to straighten out,” Belke said.
A lot of food manufacturers like Klement’s like to launch their new products in January. The good news is many are in the same boat — waiting for the government to reopen. The bad news is a lot of companies are having to re-think their marketing strategies and production plans.