Beer getting more expensive

The cost of ingredients is going up, giving brewers little choice but to pass on the burden to customers.

By Kim Peterson Aug 7, 2012 6:02PM
Image: Beer (© Corbis)Rising beer prices will give your wallet a hangover this year.

Anheuser-Busch Inbev (BUD) says it will raise prices on many of its beers this fall, according to the St. Louis Post-Dispatch. "Increases will vary by brand and market," a company spokesman told the newspaper.

This was all but expected, given the increase in cost for the materials needed to produce beer. Chief executive Carlos Brito has said the price of ingredients is rising in the "mid-single digits," the newspaper reported. So it stands to reason that beer prices will go up by at least that much, but probably more.

Time Magazine suggests that it's time to stockpile beer before the price increase.

A beer industry trade publication, Beer Marketers Insights, said that some distributors in Florida were being warned of "pretty sizable hikes," according to the Post-Dispatch. Another publication, Beer Business Daily, reported possible price increases of 55 cents a case for Budweiser products and as much as 75 cents a case for the popular Bud Light Platinum and Bud Light Lime.

Anheuser-Busch isn't the only brewer raising prices. MillerCoors, the U.S. joint venture between Molson Coors (TAP) and SABMiller (SBMRY), said Tuesday that higher prices helped it achieve underlying net income of $436 million, excluding certain items, in the second quarter.

Anheuser-Busch has nearly 50% of the U.S. beer market, compared with nearly 30% for MillerCoors.

Big brewers have been pulling out all the stops this year to lure beer drinkers back after an alarming consumer shift to wine and spirits. Molson Coors has created an iced-tea beer called Coors Light Iced T. Anheuser-Busch is selling the Michelob Ultra 19th Hole Light Tea and Lemonade.

Both companies started looking at these alternative beverages after seeing the success that Boston Beer (SAM) has had with its Twisted Tea line.

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88Comments
Aug 7, 2012 7:52PM
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Beer prices rising. Hell, why not. Everything else is going up except available Jobs, Wages and the Social Security fund.
Aug 7, 2012 7:30PM
Aug 7, 2012 7:28PM
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They need to raise the price of beer to cover the increase costs of materials, like bigger boats, private jets, longer cruise vacations and larger estates for upper management.
Aug 7, 2012 7:52PM
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The Big Smokescreen,

The increasing price of beer is just one of the literally thousands of everyday consumer items that have seen upticks of 5, 10 and 15% in the past year. Yes, some of it is due to overhead, materials and transportation costs etc, but much of it is also pure and simple greed on the part of the Fortune 500 corporations whose first allegiance is to their major stockholders and corporate boards. I certainly don't think it's because the grunt workers at those companies got huge pay increases like their CEOs.

 

Our 'purer-than-the-driven-snow' smokescreen of a federal government has a very nasty habit of continously putting lipstick on a pig by telling working Americans that the inflation is 'only' 2.5% or 3% or some similar annual figure .... wait a minute while I put on my pajamas so that these lying bureaucrats can tell me yet another bedtime story! Every single time I go to any store the price of everything has gone up from the last time I purchased it. If this weren't so sad it would be laughable.

 

Peace to all

 

 

Aug 7, 2012 7:48PM
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Why don't they cut back on advertizing?  They spend millions on advertizing of sporting events.   Management could also do with a little less.  They only made $436 million last year, how much more greed do they need?
Aug 7, 2012 9:48PM
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I would not classify Budweiser as beer.
Aug 7, 2012 7:21PM
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"Anheuser-Busch Inbev says it will raise prices on many of its beers this fall"

This is to be expected from foreign brewers. INBEV and SABMiller are just milking the US to send their profits back to Europe to keep their prices down. Moslson, another foreign brewer, is doing the same for Canada. Other than a few specialty brewers, the US is no longer in the brewing business.
Aug 7, 2012 7:29PM
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Strange that the admistration says there is no inflation Everything costs more now than before but we still only get 00.25% on our savings if we have any savings I know I am not an economist so I don't get it.
Aug 7, 2012 8:26PM
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Weaker dollar equals higher prices on beer and everything else. Want beer to get cheaper? Demand a lower debt and stronger currency.
Aug 7, 2012 7:16PM
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OOOOOOOOOOOOOOO-NNNNNNNNNNNNNOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
Aug 7, 2012 7:57PM
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P.S., I'm just glad Congress is on another 5 week Vacation and that between Obama & Romney, just in July, they raised a combined 176 MILLION. Thank you Jesus, now i can sleep tonight.....(Sarcasm off).
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consumer is screwed again, what happens when consuption comes to a total halt because of too high prices then what are you going to tell your shareholders. pass it on to the consumer. pass it on to the consumer. pass it on to the consumer.  pass it on to the consumer. pass it on to the consumer. pass it on to the consumer. pass it on to the consumer.  pass it on to the consumer. pass it on to the consumer. Oops dead economy.

Aug 7, 2012 7:13PM
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Just another "hiccup" in the economy?
Aug 7, 2012 7:38PM
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Bud and Coors SUCK! I love when we are at the pub and some idiot asks why they don't have any "domestics," instead of these microbrews. Uh, the microbrews are domestic and your crap coors and bud are internationally owned. These Macrobreweries are going to keep seeing decreases in their piss water sales as more and more local breweries pop up producing a MUCH more superior product.By them raising prices, it's just going to make their cost even with craft beer, and if I had to choose, craft beer it is, always! It's amazing that as American's we let these pathetic brands dominate the market for so long. Guess it is just a testament to all the white trash in country that eat fast food, drink budweiser/Coors light and buy "made in china" products from walmart. It would be a great day to see both these corporate BS macrobreweries go out of business as great beer cities like San Diego, Portland, and Philly continue to produce quality beer.

Aug 7, 2012 9:01PM
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I don't drink Bud anyway. It taste like crap. So raise it all you want.

Aug 7, 2012 10:04PM
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Who cares. Only people who sadly don't have good local beer drink the swill from these guys. Always go with a microbrew! So much better!
Aug 7, 2012 10:04PM
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The raw material in a case of beer is such a small percentage of the price. This is just an excuse to raise prices.
Aug 7, 2012 9:51PM
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I've always stayed with White Lightning.Drink it and run it in your auto.Cheaper to make to.Just have to watch out for the G Man!!!!!!!!!!!!!!!
Aug 7, 2012 9:04PM
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I already pay more for beer, because I dont drink stuff like Bud or Bud Light. When Im at a bar and someone orders Bud Light I laugh to myself, because that is the worst crap ever brewed. So now that these same people will be paying more I'll laugh a lot louder. Because they're getting ripped off already.
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