Craft brew prices rising?

[PADave]

Today I went for a ride to two different bottle shops. I haven't really bought much beer in the past couple years, so I have not been in these shops recently. Is it me, or are craft brew prices creeping up? Use to be able to get most decent 6-packs for $10. Now they are $12+, with many closer to $20. I guess I just needed a reminder of one reason why I brew.

 

[xandersaml]

Right when market share is getting tough to hang onto... jack up the prices

 

[triethylborane]

IMHO, it seems like prices are stable. Of course, different state so FWIW.

 

[mongoose33]

Right when market share is getting tough to hang onto... jack up the prices

Sometimes that's a way to demonstrate quality. Higher quality costs more, doesn't it?

I think this is much like how BMC market their beer. They try to associate it with something that makes you see it as having more value than just some flavored water.

I used to make custom clubs. I made a major error in how I marketed them. I just added a fixed labor cost to each club I made, on top of the cost of components.

They were great clubs, swingweight- or MOI-matched, frequency-matched. Demonstrably good. However, I didn't provide a story for golfers that would have made that quality evident--plus, I wasn't charging all that much for them.

My mistake was in not charging a LOT more, and providing a story to go with the clubs. Nobody wants to pull a Mongoose from their bag when they can pull a Titleist along w/ a story.

I woiuldn't have sold as many, but I would have made more money.

I think the same thing goes for beer. High price? High quality! (maybe ).

 

[BlkWater_brewer]

There is more to it than just price increases. Different beer styles drive up prices. The hop bombs that many like use a lot of expensive hops and all the dry hopping adds to brewing and fermenting time. We can turn around Saisons and Pale Ales in 10 - 14 days, our NEIPA's take 17 days in the fermenters and brites. Time is money and then there is the economies of scale. Some brewers don't have the luxury of 20bbl systems. We sell 4 packs of 16 oz cans for $16 retail and can't brew it fast enough. We are certainly not making a killing off of this beer but it just reflects what out costs really are. Out of 170 cases we haven't had any available to retail - it's all out the tasting room door. Also don't forget we have to discount approx 30% to bottle shops and they markup as they can. So you may pay a lot, but the brewer doesn't see all that cash.

 

[TBC]

Today I went for a ride to two different bottle shops. I haven't really bought much beer in the past couple years, so I have not been in these shops recently. Is it me, or are craft brew prices creeping up? Use to be able to get most decent 6-packs for $10. Now they are $12+, with many closer to $20. I guess I just needed a reminder of one reason why I brew.

The prices in our lovely state went up earlier this year when the legislature finally brought our beer laws up to date and now allow you to buy singles or six packs at the distributor or convenience stores. I used to pay about $40 a case. Since the law has changed now I'm around $50 for a little less than a case. I like to try all the new beers and am paying a premium for singles or six packs. If you find one you really like buy it by the case. Also since the new sales law went into effect I noticed that there is less variety at my favorite store. It takes up more shelf space to display singles and six packs.

 

[tgolanos]

The prices in our lovely state went up earlier this year when the legislature finally brought our beer laws up to date and now allow you to buy singles or six packs at the distributor or convenience stores. I used to pay about $40 a case. Since the law has changed now I'm around $50 for a little less than a case. I like to try all the new beers and am paying a premium for singles or six packs. If you find one you really like buy it by the case. Also since the new sales law went into effect I noticed that there is less variety at my favorite store. It takes up more shelf space to display singles and six packs.

Goddamnit, Pennsylvania. I noticed the prices rising even back in July when I was visiting my parents. Supply and demand, though, I guess?

To solve the issue of shelf-space, sellers could (big emphasis here) see singles or 6ers right out of the 24 case. It's common practice in Germany and here in Oz to raid larger packs for the singles. Knowing PA, though, it ain't happening anytime soon.

 

[xandersaml]

I don't mind them pricing however they'd like. I don't have to buy it. Where I am, I've seen the average prices, even on the same beers, rising. I usually go to a few local breweries when I'm willing to spend $4+ on a single pint.

 

[imasickboy]

The prices in our lovely state went up earlier this year when the legislature finally brought our beer laws up to date and now allow you to buy singles or six packs at the distributor or convenience stores. I used to pay about $40 a case. Since the law has changed now I'm around $50 for a little less than a case. I like to try all the new beers and am paying a premium for singles or six packs. If you find one you really like buy it by the case. Also since the new sales law went into effect I noticed that there is less variety at my favorite store. It takes up more shelf space to display singles and six packs.

My distributor lists everything at 12 pack prices, but discounts $4 when buying a case of the same beer, which puts the price back where it was prior to January.

He doesn't have a ton of stuff, but will order whatever you want. And when he does, he'll pull out the book, look it up, show you his cost, and say, "it'll be a few more than that so I can make something".

Sadly, not everyone around here is as reasonable and consistent with their business practices. Too many of the distributors who have been begging for these changes "to stay afloat", are taking advantage of their customers as a result.

 

[OleBrewing]

before the explosion of craft beer used to get rogue bombers in range of 3.99to4.99 (this was their standard beer line stuff), great deal and got a great bottle to reuse. now it is in the range I don't even walk by the cooler that carries them. Also used to get a Lion Stout made in Sri Lanka for 2.99 for 20-22oz bottle and it was a great stout.

 

[brewcat]

They've been rising for a long time. I used to get six packs of new craft beers for maybe $8. Of course they were still micro brews and it was almost a decade ago. Time flies... Prices are a good reason to brew more. I can't afford craft beer at 3-4x what I can make it for.

 

[OleBrewing]

^^yep priced it out once. me buying supplies and propane ended up being something around 35-40 cents a beer, mind it being a simple beer. but now my nine 5 year old hops are being dedicated and I don't think I will be able to brew enough to use them.

 

[MaxStout]

I get it, the economies of scale just aren't there for small craft brewers. Thus, the prices are necessarily high. But the bigger craft brewers are also setting their prices high, and no doubt, demand keeps it up there. And it seems like more and more breweries are packaging in 4-packs, fetching the same prices as 6-packs.

I am to the point that if a beer doesn't impress the hell out of me--whether in stores or on tap at a brewery--I won't buy it again. There's just too much mediocrity and too many wannabes doing the same thing.

I don't homebrew to save money. But it's comforting knowing that I can make pretty decent beer for about 50 cents a bottle.

I have a fair amount of disposable income, but I'm too much of a curmudgeon to willingly spend it on things that aren't up to par. Life's too short for overpriced beer.

 

[shoreman]

They've been rising for a while - I remember buying caged ommegang 750's for $3 back in the early 2000's - a case of Allagash for $27.

There's so many factors - too many to go into here, but I'll rarely spend more the $5 on a single and $10 on a 6'er. I also rarely just take a chance on a new beer unless it was bottled a few weeks ago - no dates on it, I always pass.

The really small brewers that are bottling & canning to sell though distro will probably be the ones to be hit hardest once demand slows b/c of outrageous price (which sucks)...but I guess we will see.

 

[rmyurick]

Yes, seems like they've gone up $1-2 over the last year or two. Founder's has 15-packs for $18, which is a slightly better deal.

 

[shoreman]

Yes, seems like they've gone up $1-2 over the last year or two. Founder's has 15-packs for $18, which is a slightly better deal.

Yeah the founders packs are great plus they list the packaging date right in the side.

I just picked up the Session Ales book and was surprised to see how complex the all day IPA hop bill was. (Not to get off track here)

 

[dyqik]

When I arrived in the US (Massachusetts) six years ago, it was pretty much $10 a six pack almost everywhere for basic craft beer - SNPA, Sam Adams, etc.. Now it's between $10 and $12 a six pack for the same beers, although I've moved out of expensive Cambridge into the marginally cheaper Metrowest area. What there is much more of though is expensive four packs of 16oz cans from new breweries.

Inflation in that time has run nationally between 0 and 4%, and the inflation adjusted price would be $10.91. Which is not out of line with what I see.

You can find price indices and graphs for the price of all malt beverages over time at the Bureau of Labor Statistics using item code APU0000720111 at https://data.bls.gov/cgi-bin/srgate

 

[Northern_Brewer]

Inflation in that time has run nationally between 0 and 4%, and the inflation adjusted price would be $10.91. Which is not out of line with what I see.

Bear in mind that many hops have trebled in price in the last few years - and the trend towards NEIPAs etc mean that brewers are using far more hops per pint than they were even 3-4 years ago. Neither development is good for input costs....

Ditto barrel ageing.

So you need to compare like with like - you can't compare the cost of making SNPA in 2007 with a modern NEIPA.

I'd say here in the UK those factors have been counterbalanced to a large extent by "craft" entering the mainstream, and getting into supermarkets etc which has cut retail margins. Beer's got a lot more expensive in pubs though thanks to increasing taxes and wages. But despite our high beer taxes it's now pretty much standard to see singles of "fancy" beer for ~US$2.40 - for anything from Weihenstephaner to Brewdog Punk, and you'll even see exotica like Nogne O Saison and a sour from Thornbridge for US$2.60-2.90. Decent 4-packs can be had for around $8. There's far less culture of buying fancy beer in bulk though compared to the US. In bottle shops you're probably paying more like $4 for singles, but with a much greater choice. Yes that's more than you would have paid in the past - but you wouldn't have had the bottle shop in the first place, let alone all that choice of beers made to a much better standard.

 

[cajunbrewer14]

I can get Abita here in louisiana for $7.99-$8.50. Other local brews are normally $8-10. this is for a 6 pack. Lots of places here offer a pick six for $9.99 sometimes its cheaper to get a variety of good local craft beers. Depends what you buy. I look at it this way. I rather pay a little more and enjoy a couple of beers in the afternoon then have to pay $11 for a 12 pack of light beer and drink 6 in a evening to be satisfied.