E-Malt.com News article: USA: Barley shortage causing higher beer prices

In Bristol, just like across the nation, beer prices have jumped 3 percent compared to last year, Bristol Herald published July 4.

Bristol-area beer distributors said Tuesday they don’t know why prices are rising, but in other parts of the country, the reason has been linked to a shortage of barley, a key ingredient.

"There was a price increase in the imports [beer] section about four months ago," said Mike Hubbard, the chain stores sales manager for Holston Distributing Co. in Johnson City. Those increases, he said, including microbrews such as Sam Adams and Blue Moon.

"I’ve heard a lot of people complaining about it because it’s going up," Hubbard said. "When people walk up and look at the prices, they’re surprised. But it doesn’t seem to be slowing people down."

Scott Laughlin, of Bristol Virginia, strolled down the beer aisle at George & Sid’s convenience store Tuesday, looking for his favorite brew. When he finally pulled it out of the cooler, Laughlin complained about the price.

"This is $10.29!" he said, holding up the six-pack.

He griped every step of the way to the counter, but Laughlin still bought the imported brew.

"I’m a beer drinker," he said. "I’m going to drink it no matter how high it goes up."

Mendota resident Randy Booher had a similar mindset about higher beer prices.

"I haven’t really paid attention to it," Booher said, grabbing a $10.99 case of Natural Ice. "I drink cheaper beer, so if it goes up a dollar or two, I don’t care."

According to the U.S. Labor Department, retail beer prices at grocery and convenient stores increased 3 percent in May, compared to May 2006. It was the sharpest increase in 2½ years.

Beer prices at bars, nightclubs and other social events also increased by 3.8 percent, the agency said.

Brewers and distribution companies blame shortages of barley – a grain used in the malting process. Because of an increasing demand for ethanol, farmers have slowly turned away from barley production and concentrated on growing corn.

The price increases have slowly started to affect different parts of the country, and Hubbard in Johnson City said it’s definitely hit Holston Distributing.

However, some local store managers said they have not noticed the increase.

"We have not been told that beer prices are going up," said Karen Self, who works at George & Sid’s. "Usually [our distributors] tell us a month in advance."

She said if her beer prices went up, she would have to pass on the increases to customers.

"If we found out our [beer prices] were going up, we would buy more and stock more before that happens," she said.

Self said her store gets beer from several local distributors, including Holston Valley Distributing in Abingdon, Walling Distributing in Bristol Virginia and Evans Distributing in Marion.

The July 4th holiday is a busy and productive time for her store, she said, because people buy plenty of beer.

"Fourth of July is even better than Race Week," she said.


04 July, 2007