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09.22.2009 9:41 am

Can beer prices keep going up? Should they?

St. Louis Post-Dispatch
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If they pay attention, statisticians and humble beer drinkers might notice something interesting these days. Prices for a lot of everyday items like produce and dairy seem to be hanging steady or falling in this recession. But beer? Not so much. Prices keep going up.

Beer Marketer’s Insights points out that government data showed the “consumer price index” (a measure of inflation) for all items fell 1.5 percent in August compared to August 2008. But the CPI for beer (for at-home consumption) jumped by a “fat” 5 percent in August.

Over eight months, average prices for “all items” slipped by nine-tenths of a percentage point. But beer’s average prices were up 4.1 percent from January to August. That’s a bigger increase than for wine (up 2.7 percent) and liquor (up 2.3 percent). In Beer Marketer’s Insights‘ words, “given recent round of media hand-wringing about beer price hikes, signs of continued pricing health might catch more attention.”

With lots of consumer products companies cutting prices, “can brewers continue to buck the tide?”

That’s an excellent question, especially since crops of brewing ingredients have been strong. Brewers might find it harder to blame higher prices on higher costs for hops and barley, etc. (Anheuser-Busch’s hop farm in Idaho just posted a record harvest, for example.)

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6 comments

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Hmmm…smells fishy to me!

— HalBal225
10:51 am September 22nd, 2009

Again another reason to homebrew. Last night after seeing the high prices at the grocery store, I sat down and drank a homebrew. Not only, tastier, and more refreshing. I knew I wasn’t getting Scrooged. Hop prices are cheaper than ever…fishy indeed

— great hobby
11:28 am September 22nd, 2009

The price of a good 6 pack( BLVD, Sierra nevada,Red Hook) has gone from a bit over 5 bucks about a year ago to 8-9 now. This is crap and I don’t buy good beer too ofter because of this!

— jp
11:32 am September 22nd, 2009

I think we “joe six-packs” should band together and all contribute some money to hire a lobbyist for our cause..

I’m thinking Homer Simpson would be just the guy to represent us in our righteous campaign against the evils of beer inflation. We can boycott major label beers until they lower the prices again..

It works for Washington, why not for us..?

— cardinals_99
1:10 pm September 22nd, 2009

More Bad News from the brewers. They are limiting the sale of “value” brands in kegs now that they have announed price increases to retailers for cans and bottles. No more buying the keg of Natural Light or Keystone for the keg party at home. Hmmmm….raise prices + limit availability of value brands = Joe Six Pack gets screwed! Is it possible to live without beer???? We may have to find out soon!

— chuck265
2:18 pm September 22nd, 2009

The best value brand I know of for kegs is Schlafly. $100 for a keg of Schlafly from The Tap Room or Bottleworks.

— b
3:00 pm September 22nd, 2009