Tariffs Affect Local Brewery

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KNOXVILLE, Iowa -- Due to U.S tariffs on Chinese glass, Peace Tree Brewing Company will be rolling out a new look.

“It's still unique and still the short stubby bottle, similar to the original bottles that you use when we started. However, it doesn't have the same embossing and custom branding that we had before,” said brewery president Megan McKay. 

McKay says the brewery has been wanting to bring back their bottle manufacturing to the states, but that process was quickened when tariffs on Chinese glass hit 25 percent.

“Last summer we were starting to look at the 25 percent tariffs instead of the 10 percent and that was just really not an area where we could be sustainable in that cost structure,” said McKay.

The search began, and eventually Peace Tree was able to find the domestic supplier, Berlin Packaging, who was able to provide a similar product. Unfortunately, the brewery was unable to replicate the embossed design for a sustainable cost, but McKay says the most important thing is the product inside.

“Obviously that's our first priority is making sure we're doing high quality product in the bottle ... packaging comes secondary to us, although it is something that's very, very important,” said McKay.

Since the bottles are being manufactured in Illinois, Peace Tree is able to cut energy and transportation costs, making them more environmentally friendly. That's something McKay said is a goal since they became an Iowa Green Brewery last year.

“It just really feeds into our bigger mission of being very sustainable and very green as much as we can,” said McKay.

The complete roll over to the new bottles won’t be complete until next month, which is also when the brewery will be celebrating its 10th anniversary.

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