Craft Beer Price Sticker Shock!

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bbohanon

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I know this has probably been beat to hell and back as it is, but I had to post this as this is the first time I went into a local brewery to spend some hard earned cash to try something new and do my part to support the craft community and when I saw the price, I literally had to scrape my jaw off the floor and promptly leave..

One of the local breweries here in CLT NC (who is a well respected brewery that has been around for a while so they are good peeps from what I know and this is not a bash on them personally) has started to have what I like to call "price creep"...Their house IPA in 4 pack cans are now more expensive that heady topper is and some of their other house brews are even more expensive than that (we are talking right at $20 a 4 pack of 16oz cans here) and this is pricing that is being given at the brewery where I would think a bit of a price break might be given for the "walk-ins".

They have a imperial stout that was just released that I was very interested in trying until I walked in fully expecting and willing to drop $25 on a 4 pack only to see the sign read "$10 per can or $40 for a 4 pack".

SERIOUSLY?
$40 for 4-16oz cans?

I also realized as I looked over their "on-tap" board that their sessionable low ABV beers are now sitting at $6-$6.50 a pint which to me is what I would not expect to pay at the brewery itself and certainly not for a 4% Brown Ale.

Have we really gotten to this point with craft beer? As I walked out in total shock, one of the waiters asked "Not having one of our beers before you leave?" which I replied "Not at that price I aint.."

I really want to support the local folks and do every time I can (and pricing is reasonable) but lately it seems that attempting to do that is getting far to expensive to continue to do..

This is certainly not a rant against this brewery as I know they are selling this beer (and its getting snapped up), but these price hikes is something that in my mind will eventually cause a "souring" of the craft beer consumer base if this keeps going in this direction.

For me, its a disappointing trend as I absolutely love going to the local breweries and trying new beers, meeting new folks/fellow brewers knowing that my money is going back to those that were homebrewers that made it in the biz, but at some point, enough has to be enough.
 
"Craft Beer" has become a Yuppie thing like Starbucks coffee. I patronized my local microbrewery until he pushed prices above my price point. I expect good craft beer to be more expensive than BMC...... considerably more expensive, but I feel that these guys are capitalizing on the "fad". Unfortunately I can't do the same. While I would qualify as a "craft mechanic", having worked independently on farm and ranch machinery, and countless other things, with vast experience in hydraulics, engine rebuilding, metallurgy, electrical and electronics that comes with neary 40 years of having to "think on my feet", and diagnose countless unfamiliar systems, often devising unconventional solutions to solve design problems, I still can't charge my customers $200 an hour for my time........ even though I'm the guy everybody calls when they run onto a problem nobody else can resolve........ the court of last resort.
Unfortunately when I finally retire......not far off, most of what I know will be lost to the next generation, though the problems are essentially the same even with "modern technology". There is a mindset that makes rapid solution of almost any problem possible, and I have not learned how to teach that to others, though I share whenever possible. I became the "go to guy" when others died or retired..... someone else will pick up the ball when I retire...... or die. I hope he has the balls to charge what he should.......... I didn't. Doesn't help when your customers are like family.

H.W.


I know this has probably been beat to hell and back as it is, but I had to post this as this is the first time I went into a local brewery to spend some hard earned cash to try something new and do my part to support the craft community and when I saw the price, I literally had to scrape my jaw off the floor and promptly leave..

One of the local breweries here in CLT NC (who is a well respected brewery that has been around for a while so they are good peeps from what I know and this is not a bash on them personally) has started to have what I like to call "price creep"...Their house IPA in 4 pack cans are now more expensive that heady topper is and some of their other house brews are even more expensive than that (we are talking right at $20 a 4 pack of 16oz cans here) and this is pricing that is being given at the brewery where I would think a bit of a price break might be given for the "walk-ins".

They have a imperial stout that was just released that I was very interested in trying until I walked in fully expecting and willing to drop $25 on a 4 pack only to see the sign read "$10 per can or $40 for a 4 pack".

SERIOUSLY?
$40 for 4-16oz cans?

I also realized as I looked over their "on-tap" board that their sessionable low ABV beers are now sitting at $6-$6.50 a pint which to me is what I would not expect to pay at the brewery itself and certainly not for a 4% Brown Ale.

Have we really gotten to this point with craft beer? As I walked out in total shock, one of the waiters asked "Not having one of our beers before you leave?" which I replied "Not at that price I aint.."

I really want to support the local folks and do every time I can (and pricing is reasonable) but lately it seems that attempting to do that is getting far to expensive to continue to do..

This is certainly not a rant against this brewery as I know they are selling this beer (and its getting snapped up), but these price hikes is something that in my mind will eventually cause a "souring" of the craft beer consumer base if this keeps going in this direction.

For me, its a disappointing trend as I absolutely love going to the local breweries and trying new beers, meeting new folks/fellow brewers knowing that my money is going back to those that were homebrewers that made it in the biz, but at some point, enough has to be enough.
 
I'm totally with you on this! I would have walked out too.

Now paying $6 for a pint (often more) is very common in a craft bar or taproom, and rarely do I see anything offered at a lower price ($4.50-5.50), unless it's the week's or the weekend special. Typically a session beer too.

One semi-local bar has half price pints at $4 during their weekday (4-7) happy hours. Any of their 36 taps, except some of the high octane ones (12 oz pours). Flights of any 4 4-oz samples are priced the same. I like that price, and really don't want to pay more. Especially at a brewery, the source.
 
I'm in Gatineau, Quebec (Canada), just accross the river from Ottawa, and I too was shocked at the price of pint, if you're not during Happy Hours. 9$ (CDN) a pint for an okay beer is insane.
 
try Finland, 5-6 euro's for a basic "big 3" pint of lager....

In the shops, craft beer goes between 3-8 euro's for a small bottle, and bigger bottles can easily go over 10 euros.
 
They're hardly the small local guys (well, they are local, but not small), but Lagunitas has been amazing about this. Their tap room has reasonable prices, and I can get their bombers anywhere in the city (even big beers) for $4.50-6.00, and six packs for $8-10. I know they are able to do this because of their production scale, while smaller local breweries are forced to charge more to break even, but I really appreciate that such a popular craft beer brand keeps their prices relatively low for the consumer, rather than going for the easy cash grab and charging double what they need to just to make more money. It keeps me coming back to them, which ultimately puts more money in their pockets anyway. (I do make sure to support other, smaller local breweries as well. We have so many... :D )
 
It's capitalism in action. Social media hype, FOMO, yuppies... what ever you want to blame it on, people are willing to pay those prices. So why shouldn't they charge them? The "problem" is that the customer base is willing to absorb those prices.

It's not as if beer is an "essential service" that people will die without (healthcare), so you really can't call it gouging.

The market will correct when supply out strips demand. Look at gasoline. I never thought we would see sub-$2.00 prices again, but they were there for a little bit. So maybe in two months, some of those $40 4-packs are on sale for $25. But, then as you said, people are snapping them up, so maybe not.
 
Some of this is driven by "completists" at places like Ratebeer, who absolutely must try everything. The breweries take advantage of them with special edition brews and I don't blame them. I just ignore that part of the game. It is unfortunate when session beers become expensive. But others will pay, and if you won't you are out of luck.

Also, go to a brewpub, of course you are going to pay more. What's the markup on wine at a restaurant?

And in fairness, the consumer for this isn't usually looking to get wasted. There's nothing unusual about a guy spending $20 on Budweiser at a bar of Friday night. If I'm spending $20, I'd buy fewer, better.
 
What's the markup on wine at a restaurant?

I've recently seen wholesale pricing for a NE wine distributor (not in NYC), and the margins for wine are pretty healthy. At a liquor store, you can expect a 33% to 50% margin (so 1.5 to 2X wholesale cost), and at a restaurant margins approach 70% (so roughly 3X wholesale cost).
 
There is really no reason for it... the market is there right now and their hosing everyone really...

I live in Ottawa Ontario Canada.. theres about 30+ microbreweries and there's really no reason for the pricing on most of the beers.

I had put together a list of breweries and their keg prices a while back on another forum.. and I find it quite funny when it came to a few outcomes...

i compared about 4-5 companies that would actually sell kegs to private consumers.

for 50L kegs they ranged from 240 to 260 and a couple went close to the 300 and above range. (why I got no damn idea)


30L where floating at the 130-180 mark.

THEN i contact this 1 micro brewery... no different as far as set up goes, their just as big and have actually been around longer then most others thinking about it....

and their 50L kegs went for 125$ at the time of those quotes. Now their expanding now selling in LCBO and beer stores and the price of the keg has went up to 150$ and now their option of what I can get in a keg has dwindled from anything to an option of 4 different kinds. which royally sucks but so be it...


I had turned around and asked another microbrewery if they would price match another reputable brewery for pricing on kegs and all i got in reply was "we use premium only ingredients in our beer and if you can get cheaper all the power to you" (the cheaper brewery hand pics their hops and grows them ect so by no means are they cheaping out)

All in all... how is it that 1 micro brew be SOOO much cheaper then 99% of all the others and still thrive and expand with just as much over head... now that being said the cheaper brewery is outside of the city and I do have to drive out a fair distance to get to them, but its still sad thinking a 2 hour drive to get their beer still ends up cheaper.


And I wont count one of the breweries I contacted as it was a couple guys brewing out of their garage on weekends quoted me 250$ for a keg LOL
 
I would agree with Owly and the rest of the replies stating that this pricing model has to be due to the "Fad" of craft beer lately..There is no other logical explanation of it.
We have some really great craft breweries here in NC and I have even had the chance to brew one of my award winning beers with one when I won a homebrew contest they held and they are all really great folks.

I also know what they pay for their ingredients (which is FAR less than I do at wholesale LHBS prices) and there is just no way the math adds up to charge this kind of price other than the thought of "Jack it up until they wont buy any more.." which to me is a disservice to the folks who you are trying to win over as a loyal patron.

I also know if I do ever go pro, one of my main goals will be to keep pricing of my beers in line with what I know my customers will be happy paying without overpricing it.
I may make much less money than those that are pricing to the higher priced customer, but I just cannot gouge folks on pricing like that..its not in my DNA.
I feel great beer can be made and sold without extorting your client base.

This pricing deal is probably the main reason I will never go pro with this hobby as I would never get wealthy with this mentality and most likely will go out of business before the others do.

Brew on and again..I get the whole "if its too expensive, dont buy it.." mentality, I am just bummed that supporting the local craft community is getting and in this case has gotten too expensive to do at this point.
 
Yeah, buying beer at the local store has become incredibly expensive.
Part of the blame though, is the price of hops.
As people demand more beers hopped with 10x what beers were hopped at 10 years ago, not only has the price of hops gone up, but when a brewery is using 5-10x the amount it normally would of the most expensive ingredient in beer, that's a dramatic increase in raw material cost.
So while there are many factors to blame, those of us who want the next big hoppy thing are also to blame.

I go to Germany pretty much every year and I love the fact that most beer (and I tend to frequent smaller local breweries) is less than 2 Euro for a half liter of amazing, fresh local brew.

And if any of you think German beers are boring or limited to 3 or 4 variations on the same old theme, check out this beer menu from one of my top 3 favorite brewpubs in Germany:

Bierkarte.jpg
 
There is really no reason for it... the market is there right now and their hosing everyone really...

I live in Ottawa Ontario Canada.. theres about 30+ microbreweries and there's really no reason for the pricing on most of the beers.

I had put together a list of breweries and their keg prices a while back on another forum.. and I find it quite funny when it came to a few outcomes...

i compared about 4-5 companies that would actually sell kegs to private consumers.

for 50L kegs they ranged from 240 to 260 and a couple went close to the 300 and above range. (why I got no damn idea)


30L where floating at the 130-180 mark.

THEN i contact this 1 micro brewery... no different as far as set up goes, their just as big and have actually been around longer then most others thinking about it....

and their 50L kegs went for 125$ at the time of those quotes. Now their expanding now selling in LCBO and beer stores and the price of the keg has went up to 150$ and now their option of what I can get in a keg has dwindled from anything to an option of 4 different kinds. which royally sucks but so be it...


I had turned around and asked another microbrewery if they would price match another reputable brewery for pricing on kegs and all i got in reply was "we use premium only ingredients in our beer and if you can get cheaper all the power to you" (the cheaper brewery hand pics their hops and grows them ect so by no means are they cheaping out)

All in all... how is it that 1 micro brew be SOOO much cheaper then 99% of all the others and still thrive and expand with just as much over head... now that being said the cheaper brewery is outside of the city and I do have to drive out a fair distance to get to them, but its still sad thinking a 2 hour drive to get their beer still ends up cheaper.


And I wont count one of the breweries I contacted as it was a couple guys brewing out of their garage on weekends quoted me 250$ for a keg LOL


I figure those prices were for the beer alone and did not include a keg deposit? If so, for 30L (7.9 G) it should pour about 70-ish beers so at $180 that means the true cost of the beer is about $2.50 a beer which is tolerable for pricing and around here would be a steal.

If one was charging $10 per beer, that same 30L keg of beer at the brewery I mentioned would run you $650-700 (deposit not included)

That's.......insane.

Also, no way I am paying $250 for kegs of beer from guys brewing in their garage..I am totally with you on that one. Thats nucking futs.
 
Part of the blame though, is the price of hops.
As people demand more beers hopped with 10x what beers were hopped at 10 years ago, not only has the price of hops gone up, but when a brewery is using 5-10x the amount it normally would of the most expensive ingredient in beer, that's a dramatic increase in raw material cost.

This is a key point. Increased demand means more breweries (more supply), but also high ingredient prices. According to the article below, the price of barley has gone up nearly 70% since 2010 (craft brewing isn't the sole cause).

https://smartasset.com/credit-cards/the-economics-of-craft-beer

Excerpt:

The creation of new beer recipes is increasingly dictated by the terms of established supply contracts. It also doesn’t help that barley, one of the main ingredients in beers like Brooklyn Lager, is a commodity that has seen prices nearly double since 2010. Where a bushel of barley used to cost $3.64 it now trades for $6.07 per bushel.
 
I figure those prices were for the beer alone and did not include a keg deposit? If so, for 30L (7.9 G) it should pour about 70-ish beers so at $180 that means the true cost of the beer is about $2.50 a beer which is tolerable for pricing and around here would be a steal.

If one was charging $10 per beer, that same 30L keg of beer at the brewery I mentioned would run you $650-700 (deposit not included)

That's.......insane.

Also, no way I am paying $250 for kegs of beer from guys brewing in their garage..I am totally with you on that one. Thats nucking futs.


yea is without deposit as deposit varies too much from one shop to another.

Now while the price per beer is MUCH better then paying per can, I would half expect a better discount considering the time and cost to keg beer vs canning is almost incomparable and also the fact there's no cost to deliver and pick up the keg as the buyer does all that right at the store.

I know the brewery i buy from its actually cheaper to order a batch of beer and go can it yourself then it is for a keg. 125-130 to can yourself roughly 6 24's of 355 cans. This is also the only brewery around me that does this though.


I think its time I get into brewing my own beer lol....
 
They charge what the market will bear. If it doesn't sell at $5/can, they'll change the price or close their doors. Good old fashion free market capitalism.

I wouldn't pay that either. There's a local brewery by my work that fills growlers for $10. I like going there and the beer is quite good.
 
If I brewed beer commercially and could sell any of it for $10 a can, I wouldn't hesitate. It's pure capitalism in its finest form. It's that kind of aggressiveness that stimulates others to brew the same beer more cheaply. It will pay the brewery employees. It'll help buy new equipment.

It's the exact way our American system was meant to work. You don't have to buy expensive products, that's your choice, but you really shouldn't knock the system unless you want to do away with the free market (which would be wholly un-American).
 
This is the very reason I never buy beer at the store and only drink what I brew. On the occasion I'm out of beer its good ol' BL to get me through.

If I'm out I don't mind paying $6 or $7 for a beer being SERVED to me...I'm out to enjoy myself
 
I HAVE THE SOLUTION!!!

I know what we should do in response to rising beer costs:

Let's make OUR OWN beer!!!!:tank:

Yes but you have to get out there to let your taste buds see what other people are doing. There's a lot of inspiration to be had!
 
Yes but you have to get out there to let your taste buds see what other people are doing. There's a lot of inspiration to be had!

Agreed! This is why I want to support the local breweries by experiencing some of these local brews but dont want to get ripped off by them at the same time.

I get the whole how the system works/American "its how it is" deal and I am not mad at them for getting what they can selling it..It just makes me sad when the greed portion of this gets well out of hand for no other reason than it can..especially with something I personally enjoy being a part of.

I felt the same way about gun and ammo prices pre-election. That worm is starting to turn the other way..

:mug:
 
It's capitalism in action. Social media hype, FOMO, yuppies... what ever you want to blame it on, people are willing to pay those prices. So why shouldn't they charge them? The "problem" is that the customer base is willing to absorb those prices.

It's not as if beer is an "essential service" that people will die without (healthcare), so you really can't call it gouging.

The market will correct when supply out strips demand. Look at gasoline. I never thought we would see sub-$2.00 prices again, but they were there for a little bit. So maybe in two months, some of those $40 4-packs are on sale for $25. But, then as you said, people are snapping them up, so maybe not.

Or the opposite will happen--more craft brewers will open in order to take advantage of a customer base willing to absorb such high prices just to get a craft beer.

Wouldn't shock me if this movement, if you want to call it that, will drive even more people into homebrewing.

I go to my local watering hole on Fridays not for the beer but for the social aspects. I'd rather be drinking my own beer than paying (get ready) $4-4.50 a pint. But it's not a brewery--not yet. They're working on it.
 
There's a small place very close to me that has some decent beer. They have a happy hour that used to be buy one/get one on most of their beers (excluded were some of long term aging, beers expensive to make, etc). I thought that was a great deal.

I think the happy hour is something like a dollar off now on every beer so you can get a decent pint for around $4 or $5 and up, which is still decent. They have free pinball on Tuesdays though so that is a bonus!
 
My wife and I went to a brewery just outside Charlotte, NC. We had a flight of 6 samples each, then selected a pint each of our two favorites to cap it off. Oh...we did order a single order of soft pretzel bites as well. The sours we picked were $9 each and our bill came to over $40, with tip, close to $50. YEOW, that can be a decent dinner somewhere nice.

I remember back a couple of years ago I had resumed my brew hobby after some years sabbatical. I made a seemingly innocent post asking about the cost savings of home brewing. Geez Louise, you'd have thought I sinned against the Vatican with this question and I got hammered saying "The Reason You Home Brew IS NOT TO SAVE money". Alright already. Agreed, I got bucks galore tied up in kettles, and burners and kegerators and kegs and on and on. So I get the point...but every time I keg a corny, that corny has the potential to hold (45 pints x $6 a pint avg) $270 worth of beers plus tips at 20% is $54 more. Damn. PLUS I usually don't run the risk of a DWI on my couch at home.

Damn right, craft beer prices are going insanely high. The only reason I buy a craft beer nowadays is so I can get a taste profile on the beer and figure how to clone one myself. Brew on home beer brothers, brew on.
 
IDK, I remember going to a bar in Ft. Lauderdale Fl in 1989 and the lowest cost beer was $5. If you are looking at their best beers????
 
Back when I used to buy lots of different beers to try new styles, I started using a 6 pack calculator to get a better idea of how much I was paying per oz. Bombers really shocked me.
A $12 bomber = the equivalent of a $39.27 a six pack.
I think some of those 5oz bottles were even more ridiculous.
 
This thread inspired me to do a bit o' math around my most expensive brew - a 1.110 triple chocolate double imperial honey stout (yes, it's a mouthful ;))
Beersmith tells me it costs $123 for 11 gallons, which works out to $1.04 per 12 ounce pour.

That kind of math disinclines me to go pub hopping :mug:
 
This thread inspired me to do a bit o' math around my most expensive brew - a 1.110 triple chocolate double imperial honey stout (yes, it's a mouthful ;))
Beersmith tells me it costs $123 for 11 gallons, which works out to $1.04 per 12 ounce pour.

That kind of math disinclines me to go pub hopping :mug:

I was about to say something similar. My most expensive beer I have made so far still comes in about a $1 a pint even adding in cost of the propane.
 
I think it's a good thing.

SWMBO: Why did you spend $1200 the last 2 months on beer stuff, and take over half the basement?
Tom: I'm making craft beer. It sells for $10 per 16 oz can. Each of these batches is therefore worth $400. So after about 4 batches including ingredients, this equipment is paid for! Honey, do you really want me to spend $10 per can for a beer I can make myself?:D
 
If I brewed beer commercially and could sell any of it for $10 a can, I wouldn't hesitate. It's pure capitalism in its finest form. It's that kind of aggressiveness that stimulates others to brew the same beer more cheaply. It will pay the brewery employees. It'll help buy new equipment.

It's the exact way our American system was meant to work. You don't have to buy expensive products, that's your choice, but you really shouldn't knock the system unless you want to do away with the free market (which would be wholly un-American).


I don't hear anybody "knocking the system", I hear people outraged at the price of craft beers, who are brewing their own at a tiny fraction of the cost. I do happen to be in a position to know that my cost of materials currently is approximately double that of the local microbrewery. I'm not obligated to buy microbrews, and I refuse to support that kind of pricing. In the recent spell of grossly inflated beef prices, I just didn't buy beef, and none of my friends and customers, nearly all of whom are beef ranchers took issue with that......... I made no secret of the fact that I was priced out of the market.
The fad has taken off, and as with all fads, I jumped ship when it became a "fad". I don't begrudge them their success, some of them are my friends. I supported them until they no longer needed my support as evidenced by the price increases.

The most pricey microbrew I ever bought was a barrel aged sour at $18 for a single bottle.......... A gift.

H.W.
 
I don't hear anybody "knocking the system", I hear people outraged at the price of craft beers, who are brewing their own at a tiny fraction of the cost.

Outraged? Some people just want to be outraged. Their pasttime when not working is to exhibit their outrage on the world. It's a sign of the times.

Regarding "knocking the system", you're right. Nobody directly condemned the free market system, the system that encourages sellers to set prices as high as the market will bear.

That's "the system" Owly. Are you for it or against it? A simple yes or no would speak volumes.
 
Outraged? Some people just want to be outraged. Their pasttime when not working is to exhibit their outrage on the world. It's a sign of the times.

Regarding "knocking the system", you're right. Nobody directly condemned the free market system, the system that encourages sellers to set prices as high as the market will bear.

That's "the system" Owly. Are you for it or against it? A simple yes or no would speak volumes.

Part of the way the system works is by drawing attention to prices and quality of products on the market. The free market assumes informed consumers.

AFAIK, no one is calling for price ceilings to be implemented. They're just griping about prices. Someone gripes about movies today ("Fifty Shades Darker sucks, don't waste your money!") he's not undercutting the free market.
 
Part of the way the system works is by drawing attention to prices and quality of products on the market. The free market assumes informed consumers.

AFAIK, no one is calling for price ceilings to be implemented. They're just griping about prices. Someone gripes about movies today ("Fifty Shades Darker sucks, don't waste your money!") he's not undercutting the free market.

Well OK, maybe griping IS part of the system. I guess that's a good point. But ultimately, the only feedback is sales. Griping can affect that indirectly, but in this case, probably not. The best feedback is to not buy product.
 
Well OK, maybe griping IS part of the system. I guess that's a good point. But ultimately, the only feedback is sales. Griping can affect that indirectly, but in this case, probably not. The best feedback is to not buy product.

I don't disagree with your general point, and posted something sympathetic to the cost increase (the price of barley is way up). Brewpubs probably don't care if a bunch of homebrewers think they're overpriced. They don't need to sell to everyone.
 
I'll play devil's advocate :)

Keep in mind, a brewery is a business. They want to make a profit and return their investment within the first few years of operation. Businesses cost a lot to run and that's reflected in the cost of the products. (Like cooking a filet at home will save around $20 a plate) I'm not stoked to pay $8+ for a 6 pack but I like having the selection to choose from. Margins are small for these guys so they have to make money somewhere.
 
There is a flip side to this, there are the craft beer lovers out there that don't know home brewing exists or have some excuse as to why they won't try it and they will spend all that money on different beers then wear it like a badge of honor, and then tell you how awesome the beer was.

I completely agree that the prices are outrageous but we also know what the prices of ingredients are and what goes into a batch of beer. I can't tell you how many people will tell me that they would rather buy it than make it.

My thoughts are the same as what was posted already, due to crazy high prices I only buy craft beer if I'm out for dinner (which isn't that often) otherwise I just drink what I brew.
 
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