Is Craft Beer Underpriced

[fearwig]

There's always a niche for higher-cost beers. If a $20 bomber cost $12 (assuming $2 to produce for argument's sake), people wouldn't buy twice as much of it, because once a lot of those buyers are dedicated enough to pay $12 for it, they're often in for a pound, so to speak. And part of that is that they're expecting a $20 beer, they want to know what it's going to taste like and they're going to savor it because it's $20. So $20 can make sense, in terms of the market, there's always going to be a $20 beer somewhere, I just wish there were more $1-1.50 beers that don't bore me stupid.

But I do appreciate that hops aren't cheap and neither is skill and attention. If anything I blame the craft brewers less than I do the consumers--or, going back, prohibition, and all the other factors that made Americans really terrible beer consumers for most of a century. We're paying the price now because our sudden excitement manifests itself as money. Eventually the market will probably improve (eventually we'll all be dead, though).

 

[dobe12]

If anything I blame the craft brewers less than I do the consumers--or, going back, prohibition, and all the other factors that made Americans really terrible beer consumers for most of a century. We're paying the price now because our sudden excitement manifests itself as money. Eventually the market will probably improve (eventually we'll all be dead, though).

Well put. This is a great angle I never thought of, but 100% agree with. Craft beer is a booming business. Demand is pushing supply and eventually things will balance out if not teeter back the other direction.

 

[dlester]

If you remember your history, beer producers were forced to use alternative grains due to the war. I think it was WWII. The breweries added adjuncts (e.g. rice and corn) in place of grain and Americans started to like it. I think they can get rid of the the adjuncts now.


Cheers,

 

[JohnSand]

I don't want to be a "well actually" guy, but I've been reading Brewed in America. The tradition of using corn in American brew goes back to colonial times. It definitely is used to save money, and lighten body. But I believe that commercial brewers used it even in the 19th Century.

 

[fearwig]

I actually like it when you find the rare beer that has a noticeable corn flavor. I've been thinking about a toasted corn cream ale.

 

[Arrheinous]

I can get behind $10+ for a 750mL of sour/Belgian/Imp Stout. Paid $8.50 each for DFH120 bottles back on the east coast to bring back to OH for folks. Never been into growler sales though, they don't make sense versus a six pack if you can get it.

What I don't get is how bombers can end up costing $20 at the bar? Often advertised as "beer for two" deals. This can be a 5% beer, nothing super special. I avoid the 22s completely now when going out because often times they won't list the price and it's possible to forget to ask. You can get four 16-oz pours for a bomber at the bar it seems. One of the local places here is charging $35 for a bomber of Brooklyn Black Ops - which is ~$22 on retail.

 

[Roughster]

Maybe its just me, but I rarely buy beer anymore for home consumption. Don't get me wrong, I still buy beers and try new stuff when out at to lunch, dinner, bar, and/or vacation (preferably all at the same time! ). But if I want to try something new at home, I get the grains and brew it up.

As for it being under-priced, just because you could, doesn't mean you should. A general trend of late seems to be the reduction of the small pleasures to be had at small prices. Let's at least hold on to beer being one of them still

 

[dlester]

Maybe its just me, but I rarely buy beer anymore for home consumption. Don't get me wrong, I still buy beers and try new stuff when out at to lunch, dinner, bar, and/or vacation (preferably all at the same time! ). But if I want to try something new at home, I get the grains and brew it up.

As for it being under-priced, just because you could, doesn't mean you should. A general trend of late seems to be the reduction of the small pleasures to be had at small prices. Let's at least hold on to beer being one of them still

Yes, small pleasures in beer glasses


.

 

[dlester]

+1

 

[elkshadow]

I have pretty much stopped buying beer because I think it's overpriced. I can make a 10% ABV beer for about 50 cents a bottle. 4 packs of big beers cost 13 plus tax around here. It's not worth it to me.

I want to support breweries and beer culture but I just don't care that much for regular strength beer and the premium on big beers is annoying.

 

[stu4stew]

Craft beer is under priced for the consumer, but over priced food the home Brewer

 

[Phunhog]

I have pretty much stopped buying beer because I think it's overpriced. I can make a 10% ABV beer for about 50 cents a bottle. 4 packs of big beers cost 13 plus tax around here. It's not worth it to me.

I want to support breweries and beer culture but I just don't care that much for regular strength beer and the premium on big beers is annoying.

Same here....buying commercial beer(especially at a bar/restaurant) is just too damn expensive. I can go out and have 2-3 beers and the tab will be around 20 bucks. The way I see things.....that's a POUND of Simcoe.

 

[grittanomyces]

I'd say it balances out as they overcharge for some of their experiments that don't turn out to be anything special.

Haven't read the whole thread, but economics of scale and brewer integrity are probably both big factors.

 

[elkshadow]

Same here....buying commercial beer(especially at a bar/restaurant) is just too damn expensive. I can go out and have 2-3 beers and the tab will be around 20 bucks. The way I see things.....that's a POUND of Simcoe.

Oh man now you're talking. I'm talking about package stores being too high, forget bars and restaurants. There is no chance in hell I'm paying 5-7 bucks for a single beer. Maybe once a year or something. And like I said the stuff I like is high ABV belgians and such and they go 9-10 bucks for an 8 oz. pour at some of these places. No effin way.

I checked out your FB page and it looks like you got it going on man. Nice work.

Cheers

 

[Phunhog]

Oh man now you're talking. I'm talking about package stores being too high, forget bars and restaurants. There is no chance in hell I'm paying 5-7 bucks for a single beer. Maybe once a year or something. And like I said the stuff I like is high ABV belgians and such and they go 9-10 bucks for an 8 oz. pour at some of these places. No effin way.

I checked out your FB page and it looks like you got it going on man. Nice work.

Cheers

Hey thanks for checking out my FB page!! I always think it is a bit ironic that I want to open a brewery yet I rarely visit other breweries.

 

[SpeedYellow]

Nathan doesn't seem to be an economics expert, and his conclusions don't follow his arguments. By pointing to particular beers or breweries that sell out quickly, the answer is to raise prices on those particular beers. To say the entire industry should raise prices doesn't follow.

A brewer will price a particular beer at his profit-maximizing price, and it's safe to assume that's typically happening. If certain brewers want to intentionally suppress prices to build goodwill, then perhaps they're foolish or perhaps that goodwill is worth more than Nathan understands.

His blog post:
http://www.nathan-miller.com/

 

[Nordman]

I wish I could get a sixer of craft beer for $9.50, how could anyone complain about that price. In my country that is the price of one small bottle of craft beer.

 

[Paradigm]

The prices are kept low because American culture is heavily quantity = value. A 30 pack of PBR costs the same as many bombers of big beers (in NH a 30 of PBR is $17). A lot of people still drink beer to get drunk instead of for the flavor.

 

[dlester]

I wish I could get a sixer of craft beer for $9.50, how could anyone complain about that price. In my country that is the price of one small bottle of craft beer.

Nordman, I'm sorry to hear that. Breweries are popping up everywhere here, and most of them are pretty good. Your problem is similar to our issues here in Los Angeles back in the 70's and 80's. We couldn't get anything other than Bud, Coors, Miller etc. Many that started my club back in the 70's wanted to make beer similar to those in Germany and Belgium. The Maltose Falcons were brewing European Beers because no one else other than Anchor Brewing in San Francisco was brave enough to try competing with the big brands.

PS. I see an opportunity for you. Start a brewery and make great beer for everyone in your area.

Cheers