Why is commercial beer getting more expensive?

[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.

 

[Calichusetts]

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.

This...100%

They are a business (distributors and retail stores) and if people buy it, why should they lower it? Most breweries these days are moving the price point by shifting the packaging:

6-packs become 4-packs: Same price or maybe a dollar cheaper
22 oz bomber becomes 16.9 oz bottles (this is one you need to watch for, hard to catch)
And now smaller cans/bottles like 11 oz, etc.

 

[MarshmallowBlue]

I saw a few places asking 17.99 for a Sam Adams 12. No thanks. I'm sure it will be on sale for 11.99 in a few weeks when none of them sell for that amount.

 

[brewprint]

This is one of the main reasons that I brew. $10 for 2 cases of Centennial Blonde? Yes please.

 

[TheCADJockey]

I would say our prices have increased as well. For a while, I was buying racks of PBR at $5.99 and it was for that reason alone. Now I buy, what I previously assumed was garbage, our local BMC (Genesee Light) at $4.99 because the PBR went up to nearly $8. This is just an example. I don't care about these two beers at all, I just get them as cheap side beer.

What does get me, is what has already been mentioned. Bomber prices are ignorantly high. I'd love to try some of these special, seasonal beers that our breweries offer but around $8-$10 a bottle? I would just be splitting the bottle with friends to give them the opportunity to enjoy something new anyway. So. No thanks.

The biggest one for me, are the hyped companies that we have. Ballast Point for example. We've had their stuff here for a long while and it was always pricey. Now their beer is $14 a six pack. Laughable. You're not that good, sorry.

 

[hunter_le five]

The biggest one for me, are the hyped companies that we have. Ballast Point for example. We've had their stuff here for a long while and it was always pricey. Now their beer is $14 a six pack. Laughable. You're not that good, sorry.

I've never tried a Ballast Point beer, and it's not for lack of availability here. I'd rather drink Coors Light than pay that much for a sixer.

 

[drainbamage]

Ballast Point and Rogue are some of the worst offenders I've seen of ridiculous 6-pack pricing. BP I might buy once in a while if I'm craving a Grapefruit Sculpin. $16 for Rogue? Lawl.

As for bombers, I think I'd be better off brewing a batch of RIS and lighting a $20 on fire.

 

[TheCADJockey]

I've never tried a Ballast Point beer, and it's not for lack of availability here. I'd rather drink Coors Light than pay that much for a sixer.

The only Ballast I've had was the grapefruit sculpin and it was due completely to the hype I see here. I'll never buy their stuff again, at that price at least. It could and most likely is just me, but grapefruit sculpin tasted straight up like Ocean Spray Grapefruit juice. The disappointment was overwhelming. I didn't even care to drink the entire six pack; I instead just gave it to my friends. It wasn't that it was bad, it just.. was boring.

$16 for Rogue? Lawl.

As for bombers, I think I'd be better off brewing a batch of RIS and lighting a $20 on fire.

Needed that laugh, thanks.. and I agree.

 

[JoshuaW]

Im going to take a different position: I generally dont mind. Yes, I would always rather pay less, however I am purchasing a premium product, and Im not surprised when it demands a premium price. If bomber is $20 and it has the reviews and clout to back it up, and I want to try it, Im going to buy it. If its good, I might even buy it again!

If I want to "drink something" I will drink water. If I want to drink to get intoxicated, I will do shots. I drink beer because I enjoy it, and Im going to drink whatever damn beer Im going to enjoy the most, at whatever the price it costs!

 

[ThomasPaine]

Bought a 4 pack of Tank 7 for $10 other day and it was well worth it. I never bought the bomber of Tank 7 because of the alcohol content. I think Boulevard prices their beer well. As for Sculpin, it seems they set it on the shelf at $14 and people said oooo expensive must mean good. Now it's $15 .

 

[Onkel_Udo]

All 12-packs are up about a buck and my local brewery, 3F, is up a $1 a sixer at their location and in stores.

I don't begrudge it. If I want "cheap", tasty beer I just need to stop wasting time on other things and get my pipeline full again.

 

[Wynne-R]

Craft beer is much more expensive to make because they use more ingredients and they don’t buy them by the trainload. There are other economies of scale.

I can buy a lot of 8+% beers for $11.99. The ingredients are at least twice as much as Bud. No adjuncts, way more hops. Is Bud $6/six pack? It is not. The truth is, BMC has been charging premium prices for thin boring lagers for years. Craft beer is a bargain.

I think in general their strategy has shifted from marketing share to increased margin, as people become more used to the product.

 

[Calichusetts]

View attachment ImageUploadedByHome Brew1448317194.997685.jpg

 

[Brettomomyces]

Well...thread over?

I'm kind of stunned raw ingredients are only %10 of that cost.

 

[day_trippr]

The reality that only 10% of the cost of a craft beer is actually "in the bottle" is kinda sad...


Cheers!

 

[bucfan1234]

Don't forget the pending merger of the two brewing giants. The significant reduction in competition will lead to increased prices to the consumer.

In addition, the craft movement and the sudden increase in the number of commercial breweries is leading to greater demand for the raw ingredients which will also increase the cost of limited supplies of those ingredients.

 

[drainbamage]

View attachment 318186

Wow, that is surprising...and yes, sad.

 

[urg8rb8]

Don't forget the pending merger of the two brewing giants. The significant reduction in competition will lead to increased prices to the consumer.

In addition, the craft movement and the sudden increase in the number of commercial breweries is leading to greater demand for the raw ingredients which will also increase the cost of limited supplies of those ingredients.

The increase in price of current quantity of grains could lead to new suppliers driving the price back down.

 

[MaxStout]

That 31% retailer margin doesn't surprise me at all. Check prices in your local mom & pop, then see what it is in one of the warehouse places like Total Wine. I can usually save a couple bucks on a sixer at Total. The margins for spirits can be even worse. I picked up a 1.75L of Maker's Mark at Total Wine for not much more than what the little places get for a 750ml.

If it's a quick trip for a 6 or 12-pack, I'll go to the neighborhood place. But if I'm stocking up, I'll go to the big box liquor store.

 

[normonster]

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.

Silly Gavin...assuming our market is healthy. My addiction to brewing is ANYTHING but healthy...in more ways than one!!! LOL

 

[normonster]

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!!

Newcastle? Not micro but fits that mould. Greenflash seems to be aiming for this spot too.