USA: Beer prices on the rise

The prices haven`t been rising quickly, and they don`t rise often, but the price of beer has been going up for years, and is about to rise again, KFYR-TV reported on August, 8.

"Obviously we are seeing prices go up. We, I know there`s other places around town. As a business you have to decide what you`re going to do with that, if you`re going to eat the costs that are brought on to you, or if you`re going to pass it on to the guests," said Blarney Stone owner Russ Wanner.

So far, the Blarney Stone owners have chosen to eat the cost. He says they`ve taken a big jump during the past year.

Wanner said: "It`s a big concern right now. We look at our numbers every month, and we`re not making the numbers we made three, four, five months ago. It`s in the back of our minds, you evaluate how the economy is, what the situation is, and then decide what you`re going to do from there. It`s always in the back of your mind."

Generally, major brewers have an annual price increase in October.

Distributing companies say they`re not sure yet what that increase will be this year, but over the past years, it`s equaled about 30 cents per case of beer. Craft breweries are usually more.

But no matter where it comes from, the impact on a business` bottom line is the same.

"When the price goes up, you very rarely see it drop back down. We`re holding on as long as we can, and we`ll see what happens," said Wanner.

The price of malting barley has also been rising. One year ago, a bushel of malting barley cost between $5.50 to $5.80. Now, it`s about $6.60 to $6.75.

10 August, 2011