What is driving up beer prices?

I agree with you that on a demand curve, rare beer is absolutely underpriced, but it's important to remember that the "halo" beers like BCBS, KBS, etc. are really more of a marketing expense than a profit center for breweries. They keep prices on these beers low because the brewery is banking on KBS being a way to keep beer geeks buying All Day IPA and such. It also provides the joy of leverage with retailers (hey, sell X cases of Sofie or Y cases of Dirty Bastard to get the rare stuff!). I think a lot of the halo that these rare beers provide would be tarnished if there was a price increase to the point of equilibrium. Look at all the bitching last year when BCBS had a price increase and bottle size change.

The second part of the reality is that there wouldn't be much of a windfall if these beers increased price significantly. In the grand scheme of things, the big rare stuff just isn't that much liquid as a percentage of a brewery's total sales.

 

But how much are the Bell's cases? It's always cheaper in PA to buy beer by the case vs. 4 x 6-pack cost.

 

Mine was $53.00 in MA, Great to enjoy fr the whole winter. And next year. Maybe some here would just buy 12 packs and cases for better price/unit? Been doing that for bigfoot every year too. Now I have every year going back to 1989, for the win!

 

I think I'm not in Kansas anymore. ( Sorry, I couldn't resist) MA sees good 4 packs of fresh local 16 oz cans for $ 12-15.00. Which is why I don't buy Trillium for TWENTY DOLLARS a 4 pack. Umm, no thank you.

 

Increase in beer prices? Hmm, tickers, traders and whale seekers anyone? As said before, inflation, Yup. Not touched on before, how about transportation costs, like gas? Water, plant facilities, little stuff like barley and especially hops. Seems like they are in short supply that costs more $$$. That said, the US has a capitalist market system, Free enterprise and all that. Supply and demand. Pay what you will pay? Ever buy kobe beef for $ 50.00 a pound? Not me.

 

There are really at least two tiers (probably more if you start breaking it down) of the craft beer market - the stuff sold on the shelf by the case and six pack, and the limited release at breweries, or in stores by the single bottle. The market for Sierra Nevada Pale Ale is not the same as Cantillon sours.

I'd say a majority of the beer sold on shelves is at the market price. Its the stuff that is bought by people in lines or by lottery that is probably under priced by supply/demand standards.

But whether that "demand" is really justified in many cases is a whole other discussion.

 

Beards and skinny jeans

 

Higher Price= (((Utility-Supply)/Price)*Hype)+((Skinny Jeans + Beards)-(#kids < 4 yo + #hpw > 40)))

 

I am not a fan of expensive 6 packs but think about it, at the bar a pint of bud or miller is like $3, x 6 you have $18 basically for a 6 pack. You can get a Stone 6 pack for $16. Or you can get 4 pack of Breakfast Stout for $9.99. I still think we are getting a deal since the beer quality is miles ahead and the price is still cheaper than sitting at the bar drinking. Also toss in local guys who charge $8 a 6er and you are doing very well.
I think a lot of cost is driven by the costs on the companies to do business here, USA has horrible taxes and I am sure toss in power, water, regulations, etc. its murder on them. So they have more cost to spread across less product say vs a bud they can stretch that expense over mega volume.
Sadly as the years pass the costs will jump. Just hope they don't decide to go the way of tobacco on us and tax the beer to oblivion as a LUXURY good, then we all will be very upset.