Why is commercial beer getting more expensive?

[urg8rb8]

I just picked up a 6-pack from the supermarket and I noticed that all their prices have gone up $1 per 6-pack. Is anyone else seeing this as well? This is crazy!

 

[CUrchin]

Supply and demand. You still bought it, didn't you?

 

[Gavin C]

Probably a case of fundamental economics at work.

Supply -v-demand

• Demand is increasing to outstrip growth in supply.
  
• Inflationary pressures.
  
• Rising costs of brewing that get passed down the chain to the consumer.

Those 3 possibilities leap to mind.

A healthy free market is self correcting so I wouldn't be concerned.

 

[urg8rb8]

I know about supply and demand very well.... I'm a follower of Austrian Economics! Next time I'll probably only bring whatever is on my tap.

 

[lowtones84]

A couple of years of bad malting barley crops probably doesn't help either.

 

[iijakii]

It's the bomber prices that get me. There's some decent $4 and $5 bombers, but the majority are $7-10 for any standard beer, then $15 for big imperial stuff. It's insane.

 

[Gavin C]

It's the bomber prices that get me. There's some decent $4 and $5 bombers, but the majority are $7-10 for any standard beer, then $15 for big imperial stuff. It's insane.

Are they priced insanely enough for you not to be buying them?

 

[iijakii]

Are they priced insanely enough for you not to be buying them?

Around here the majority of them are $8 IPAs, and I absolutely pass on those. Most are mediocre to boot. I can get some really good IPAs for $4-5; Citrus Mistress, Workhorse etc. That said I do spring for a new Stone every once in awhile to try, but not often.

 

[Gavin C]

Around here the majority of them are $8 IPAs, and I absolutely pass on those. Most are mediocre to boot. I can get some really good IPAs for $4-5; Citrus Mistress, Workhorse etc. That said I do spring for a new Stone every once in awhile to try, but not often.

There you go. Playing your individual part in dictating market pressure.

Enough folks thinking like you and the market will self correct the price of an $8 mediocre IPA bomber.

Similarly, demand for your favorites going up will potentially cause a price rise. Don't tell anyone how good they are.

Macro-economics is a beautiful thing.

 

[Jwin]

You could have had a local taxation increase as well

 

[urg8rb8]

How about just price inflation in general? The prices of all the beers went up here! A 6-pack for Bud Light was $7.99!!!

 

[Michigan_Wolfman]

I just picked up a 6-pack from the supermarket and I noticed that all their prices have gone up $1 per 6-pack. Is anyone else seeing this as well? This is crazy!

It's a conspiracy..... *looks over my shoulder to be sure They Who Follow are nowhere near* ipe:

 

[slym2none]

Lagunitas keeps their bombers at around $5, and they can be 8%, 100IBU beers sometimes.

For $7-8, it has to be something special to buy a bomber of.

$10+, pass.

That being said, looks like I am getting one of the BCBS 500mL bottles here on Friday. I guess it's worth the $15 they will bend me over for.

 

[jwalk4]

How about just price inflation in general? The prices of all the beers went up here! A 6-pack for Bud Light was $7.99!!!

A sixer of BL cans in Ontario is $12.50.

Mind you, due to our outrageous taxation, I could break my arm and not pay a penny to anybody, hospital or insurance.
So there's always a trade off.

 

[Jwin]

Pbr is still less than $6 for a sixer of tallboys

I know because I decided to give myself a headache earlier this week

 

[iijakii]

Lagunitas keeps their bombers at around $5, and they can be 8%, 100IBU beers sometimes.

For $7-8, it has to be something special to buy a bomber of.

$10+, pass.

That being said, looks like I am getting one of the BCBS 500mL bottles here on Friday. I guess it's worth the $15 they will bend me over for.

Expensive soy sauce.

 

[AZCoolerBrewer]

Fair market, supply and demand my rear. http://www.ajc.com/news/news/state-regional-govt-politics/georgia-beer-brewers-state-sold-us-out-to-distribu/npQcC/
BMC merged for a reason. Their days were numbered and these are the beginnings of the fight. The linked article is about a decision made in Atlanta where urg8rb8 the OP lives.

 

[tennesseean_87]

Are they priced insanely enough for you not to be buying them?

I don't buy commercial beer much at all. I just brew my own.

Also, inflation.

 

[day_trippr]

How about just price inflation in general? The prices of all the beers went up here! A 6-pack for Bud Light was $7.99!!!

An appalling price for an appalling beer. Seems wrong.
Craft sixers here are selling for $8.99 - and up...

Cheers!

 

[drainbamage]

You could have had a local taxation increase as well

This is what I was going to suggest as well. Our statewide alcohol taxes went up about 2 years ago and 6-packs saw an increase of around a dollar.

 

[castillo556]

A sixer of BL cans in Ontario is $12.50.

Mind you, due to our outrageous taxation, I could break my arm and not pay a penny to anybody, hospital or insurance.
So there's always a trade off.

That's the thing, you ARE paying, you've just been conditioned to think that you aren't.

NOTHING is free.

 

[Phunhog]

That is why Macro breweries buying craft breweries will soon have an edge. They can discount their six packs a buck and make it up in sales volume. Most independent craft breweries are tapped out on space and can't increase their sales volume much. So if they follow suit they will be making less money than before. I don't know about you guys but the craft beer I buy at the store is almost always the cheapest one or the one on sale.

 

[Hello]

Is that all beer?
I haven't noticed an increase across the board, just with some that have gained quite a bit of popularity.

 

[SevenOaks]

Hey, I've got an idea ... Let's all brew our own beer!

 

[Ike]

Hey, I've got an idea ... Let's all brew our own beer!

<tinfoil hat>

Just wait... BMC will be coming after the LHBS next.

</tinfoil hat>

 

[SevenOaks]

BMC can buy me out for a billion dollars any time

 

[iijakii]

I think homebrewing has led me to drinking even more craft... always trying new ones for "inspiration".

 

[specharka]

What's more confusing to me is when bombers are 2x expensive per ounce as the SAME beer in 12 oz form... Are we supposed to be idiots?

I've seen a lot of bombers north of $22 recently, and it's starting to bother me. Makes my $60 IIPA grain bill look downright frugal.

 

[JKoravos]

Beer is moving upscale. Prices will continue to increase like this for a long time. Even mediocre wine is $10 a bottle with regular prices in the $15-$30 range for nothing special. This is where beer is going. I'd wager good money on $25 six packs of 'typical' beers within ~10 years.

I also predict a massive boom in homebrewing.

 

[Phunhog]

Beer is moving upscale. Prices will continue to increase like this for a long time. Even mediocre wine is $10 a bottle with regular prices in the $15-$30 range for nothing special. This is where beer is going. I'd wager good money on $25 six packs of 'typical' beers within ~10 years.

I also predict a massive boom in homebrewing.

What we need is craft beer that is along the lines of a "Two Buck Chuck" wine. Not fantastic but very drinkable and the price can't be beat!!

 

[hunter_le five]

Everything's getting more expensive. Food prices in general are on the rise, not just beer.

It's the bomber prices that get me. There's some decent $4 and $5 bombers, but the majority are $7-10 for any standard beer, then $15 for big imperial stuff. It's insane.

This is why I rarely buy bombers anymore. Such a ripoff.

How about just price inflation in general? The prices of all the beers went up here! A 6-pack for Bud Light was $7.99!!!

Ayup.

 

[Michigan_Wolfman]

<tinfoil hat>

Just wait... BMC will be coming after the LHBS next.

</tinfoil hat>

Don't give them the idea!!!!!

 

[TallDan]

What we need is craft beer that is along the lines of a "Two Buck Chuck" wine. Not fantastic but very drinkable and the price can't be beat!!

We have it. BMC. Mass produced beverage for non-discerning palates. If you think that's an unfair comparison, you might want to try some better wine and pay more attention to it's taste.

Also, Chuck has been more than two bucks for a long time now.

 

[applescrap]

.

$10+, pass.

I was the same way until i broke the ice ....i still dont buy them hardly ever but i have found they make an awesome present cause you know its not a huge splash out for a friend and its not something at least for me i buy often


I think beer prices have gotten stupid and i dont care why!! That being said picked up 5g. Of breck Christmas ale today for 55 i can live with that i guess. I mostly buy kegs

 

[TxBigHops]

Are they priced insanely enough for you not to be buying them?

Yup, they are for me. Rarely buy anthing over $10, unless I really REALLY want to try it. And then I only buy one, and I savor it. Why should 22 oz cost as much as 72 oz (6 pack) when there are so many good beers avaialbe by the 6 pack? Especially now that I brew, I know what it costs to make beer. I may be only one person, but that's the only way I can protest it.

 

[C-Rider]

I rarely buy craft beer. To expensive and I make my own "craft beer". But now and then a local market sells good stuff like S.N. that has an expired date for like $5 a 12 pack. Can't pass that up.

 

[Bosh]

What we need is craft beer that is along the lines of a "Two Buck Chuck" wine. Not fantastic but very drinkable and the price can't be beat!!

Well it can be done, look at "Government Ale" or other cheap ale the British brewed during wartime when dealing with rationing and high prices. Just go with some combination:
-Low gravity.
-A good bit of cheap adjuncts.
-Flavorful yeast.
-Flavorful specialty grains or sugar.
-Good bit of IBUs from boiling the strongest hops you have for at least an hour. Doesn't take much too do this.

Won't be the best beer in the world but you can make pretty tasty beer for really cheap.

 

[Calichusetts]

The price of beer is mainly on the distributor/retail end. They set the price and make up about 60% of the cost. Breweries have very little say in the cost other than a suggested price point.

Prices are going up because people are still buying them. I call it the "Apple" effect. How can Apple charge $2,200 for a laptop when there are great ones out there for $700? Because people buy it.

I have two Craft Beer Cellar stores on my commute home from work. One near the city and one in my hometown. SAME beer, 25 miles apart is sometimes $5 more a 6-pack. I literally don't buy beer from the one in my town unless I have to. I've seen price swing of up to $10 on a bomber from store to store.

This has nothing to do with the brewery.

 

[IslandLizard]

Great thread!

I'm pretty appalled too at the price of craft beer. My wife picked up a few 6-packs at the local beer store. $16.99 each for Ballast Point's Grapefruit Sculpin (bottles), and Burley Oak's Sorry Chicky and Secret Sauce (both in cans). Burley Oak is a small brewery on the Eastern Shore here, about a 3 hour drive for us each way, their beer is pretty good, and their taproom is a good place to be, if you're in that area.

As short as 2 years ago, I used to buy Yuengling Black & Tan (my favorite), their Amber Lager, or Premium Lager, in North East PA for that same price, but got a whole flat of 24 16oz cans in return! I know it's not the same, but $3 for a 12oz bottle or can, after tax? I need to brew more!

In that regard many bombers are totally out of whack, pricewise. @TxBigHops totally agree with you.

 

[Gavin C]

I don't buy commercial beer much at all. I just brew my own.

Also, inflation.

Yup, they are for me. Rarely buy anthing over $10, unless I really REALLY want to try it. And then I only buy one, and I savor it. Why should 22 oz cost as much as 72 oz (6 pack) when there are so many good beers avaialbe by the 6 pack? Especially now that I brew, I know what it costs to make beer. I may be only one person, but that's the only way I can protest it.

Again, more individuls exerting their influence on the market by factoring in cost and freely choosing to buy other products.

If the beers at that price are not selling it does not make sense to any retailer to have them sitting on the shelf and they may decide to lower the price.

If, on the other hand the beers are selling fast, it would make sense to me to put the price up or leave it unchanged.

I fear it's really not more complicated than that.

I feel the beer market in the states is great. The choices are unparalleled, the market is huge and as a result the prices are IMO extremely competitive. If something is too pricey for me, I too will play my role in dictating market pressure and look for something closer to my price point.