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Beer Prices on the Rise

August 31st, 2009 at 06:08 am

The cost of a beer is going up. Brewers across the world are hiking prices to compensate for lower sales volumes and higher commodity costs. This past Tuesday Anheuser-Busch made public its plans to raise prices. MillerCoors announced it is also raising prices but the reasons they site are in line with their company's regular fall increases not the economic environment.

Industry experts expected this but these companies will only be able to raise prices so much due to the fact that the consumer will not take lightly to price increases in the current economic climate. In fact Heineken will ind a tough environment to keep raising their prices as one of their major competitors (Corona) has said it will not increase prices.

Heineken and Corona are struggling more than Anheuser-Busch and MillerCoors because consumers are choosing the less expensive brands. This will lead to a very tricky balancing act, to be able to raise prices to offset costs but not to lose push consumers to another brand of beer or from any purchase. This all comes at a tough time for Micro-brewers as they were enjoying increased market share but their higher prices might push beer drinkers back to lower priced beers like Bud Lite & Coors Light.

2 Responses to “Beer Prices on the Rise”

  1. Nika Says:

    Luckily I don't drink those brands Smile Sam Adams and Blue Moon when buying from regular grocery stores, but that's rare.

    Beer on tap is just so much better! There is a place not far from my house that has about 10 German beers and sometimes Belgian beer(including seasonal) ON TAP! $5-$6 for half a liter, which is not bad in NYC.

    Gaffel Kolsch, Hofbrauhaus, Spaten Optimator, Bitburger, Weihenstephan, Spaten Lager, Radeberger,
    Dab, Warsteiner...

  2. Jerry Says:

    This is an example of how the economic crisis affects so much more than just mortgages, insurance, and investments. Even the beverage and food industries cannot escape, and they are selling FOOD AND DRINK!

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