Beer drinkers across the country will have to reach deeper into their pockets this fall to satisfy their cravings. With the price of domestics set to rise, craft and budget beers will see greater volume sales. Though prices increase about every seven months, Joel Settoon, on-premise account manager for Crescent-Crown Distributing — distributor of MillerCoors, Heineken USA, Crown Imports LLC and others in southern Louisiana — expects people may be more aware of the increases now because they’re being more money-conscious.The price of beer, ale and other malt beverages sold for at-home consumption rose 5.3 percent in 2008 from the previous year, according to the Bureau of Labor Statistics Consumer Price Index. The cost of those same items rose 4.6 percent more as of July 2009.Anheuser-Busch saw a 1.5 percent decrease in sales volume compared to this time in 2008. “We plan on taking price increases on a majority of volume and in a majority of markets this fall,” Anheuser-Busch InBev said in a statement. “The increase helps cover some input costs.”Input costs such as grain and barley are at their height, said Abita Brewing Company President David Blossman.Prices have to increase to match increases in cost of gas and delivery as well, Settoon said.The average price of a case has gone up about $4.00 — $19.48 on average in the last 10 years, he said. While domestic and import beer sales may be down, sales of budget beer like Natural Light are up, Blossman said.The economy has people trading down, he said. The price increase will probably make Karmen Jones, elementary education junior, switch the beer in her tailgating cooler. Jones said she’ll probably go for something cheaper. Sales volume for craft beers has increased 5 percent this year, Blossman said. Abita sales have increased 13 percent. The current fad is craft beers, Settoon said.”That’s what people are spending their money on,” he said. Tiffany Toomey, political science junior, said an increase in domestic prices won’t affect her choice of beer much because she mostly drinks specialty beers like Woodchuck and Leinenkugal’s and expects to pay a higher price for those. Drinking craft beer at home is more common for Justin Greer, English senior, than popping open a domestic at a bar. But crafts have also had to raise prices. Abita increased prices about $1.00 per case in the Baton Rouge area, though they’re trying not to increase them for next year, Blossman said. Historically referred to as a “recession-proof” industry, Settoon said he doesn’t see the industry facing a major decrease in volume for long.”People are going to drink when they’re happy, people are going to drink when they’re sad,” he said. In fact, volume sales in Baton Rouge have increased during the last year, Settoon said. He cited the opening of several new bars and the onset of football season as cause for the increase.”We look forward to football season, that’s when the beer business makes money,” Settoon said.—–Contact Olga Kourilova at [email protected]
Craft and budget beers to see greater volume sales
September 23, 2009