Alcohol Producers Shift Production to Hand Sanitizer

Alcohol Producers Shift Production to Hand Sanitizer

Alcohol producers across the U.S. and Canada are shifting production to hand sanitizer to alleviate the shortage of the cleaner in fighting the coronavirus.

Small spirits companies such as Air Co. in New York and BENDT Distilling Co. in Texas are able to use their processing equipment, donated alcohol and bottles, and skill sets to join hands with big industry players such as rum maker Bacardi and Beer maker Auheuser-Busch In Bev to supply hospitals and first responders in their local communities with the much needed virus fighting tool.

Video Spotlight: 

This post is based on the Forbes article, Why A Brooklyn Vodka Maker And A Texas Whiskey Distiller Have Joined The Hand Sanitizer Brigade, by Robin D. Schatz, March 27, 2020, and the YouTube videos in the Spotlight. Image source: Svanblar/Getty Images

Discussion Questions:

1. How do alcohol producers practice social responsibility in the fight against the coronavirus crisis?

Guidance: Hand sanitizer is in severe shortage as consumers, hospitals and other establishments stock up the much needed cleaner to protect themselves against the coronavirus.  Alcohol producers are shifting production of liquor to hand sanitizer, which is donated to their local communities.  These producers demonstrate their social responsibility in meeting the health-care need of people in our society.

2. How do alcohol producers deal with the sudden drop in liquor demand from an aggregate planning perspective?

Guidance:  As a short-term aggregate planning response to the sudden drop in liquor demand, (1) alcohol producers are shifting their resources to make hand sanitizer, a complementary product; (2) major industry players are donating their excess alcohol, grain, and bottles, etc. to small producers to meet the much needed demand for hand sanitizer; (3) the production of hand sanitizer is facilitated as tax code and government regulations are relaxed.


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