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2013 price increases

Discussion in 'Beer Talk' started by Frankinstiener, Dec 15, 2012.

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  1. Frankinstiener

    Frankinstiener Jul 28, 2009 Illinois
    Beer Trader

    I was reading a press release from Boston Beer company regarding their 3rd quarter results, and it included an outlook for 2013. It said they will raise barrel prices between 1% and 2% and that these price increases will not be enough to offset cost increases so their margin will take a hit. Here is the quote:

    -Targeted price increases per barrel of between 1% and 2% to partially offset anticipated barley, hops, other ingredients, packaging freight and processing cost pressures.
    -Full-year 2013 gross margins of between 53% and 55%, due to anticipated price increases not fully covering anticipated cost pressures and some product mix changes.

    A couple of questions for those in the industry or in the know:

    How would a 1% to 2% per barrel price increase affect prices paid by the consumer?
    Any knowledge of any other breweries increasing their prices for 2013?

    Here is the press release if you would like to read it:
    http://www.bostonbeer.com/phoenix.zhtml?c=69432&p=irol-newsArticle&ID=1753342&highlight=

    I know Boston Beer isn't everyone's favorite on here but I find it sad that their seasonal releases along with Twisted Tea and Angry Orchard (cider) are basically what's keeping them growing. Decreased sales in their craft beer line as a whole are being offset by sales increases in Twisted Tea and Angy Orchard.
     
    quetzal013 likes this.
  2. Porkhustle

    Porkhustle Dec 6, 2012

    I like BBC, but keeping their 6ers under 10 bucks, IMO, is crucial to their success.
     
    kuhndog and BeerKangaroo like this.
  3. quetzal013

    quetzal013 Feb 16, 2011 California

    Hop Stoopid went from 4.20 to 4.70 last time i bought it, a 12% price increase. Still a great DIPA for the price. Not sure about the industry trend, but this will be an interesting thread to follow since I am sure most people posting here spend a significant amount of money on craft.
     
  4. quetzal013

    quetzal013 Feb 16, 2011 California

    Here is an interesting report I stumbled across when searching for craft beer 2013 price increases on Google. I am not sure about the validity of the data, but it is an interesting read. There is also an interesting assessment of canning beers (clearly CO is leading the charge on that one).

    Thanks for posting this topic!

    http://www.craftbeeranalytics.com/uploads/3/3/8/9/3389428/bri_issue_2.pdf
     
  5. Porkhustle

    Porkhustle Dec 6, 2012

    that's more expensive than Hopslam, so I don't think it's really a great deal....but rather just okay
     
  6. shortysdude285

    shortysdude285 Apr 30, 2009 California

    It could just be the actual or perceived drop in availability, but Deschutes' Reserve Series beers have definitely seen a price increase around here. In lighter news, FW anniversary beers seem to have dropped about a dollar per bottle in my parts.
     
  7. quetzal013

    quetzal013 Feb 16, 2011 California

    Does it help that Hop Slam is 12oz and Stoopid is 22oz? I feel like a bomber under 5 bucks is a pretty good deal.
     
  8. Porkhustle

    Porkhustle Dec 6, 2012

    I took that into consideration already. Hopslam is like 18 bucks and the ounce equivalent of HS is like 17 bucks
     
  9. Flashy

    Flashy Oct 22, 2003 Vermont

    Many business people were waiting until after the election before making some serious decisions.
     
  10. bdub32689

    bdub32689 May 19, 2011 Massachusetts
    Beer Trader

    Many forget about the severe long term drought experienced by alot of the country. Really puts pressure on raw material price. I would be interested to know what smaller breweries are forecasting on cost increases but we may never know because most are not publicly traded and dont have to publicize info.

    Also makes me wonder what smaller breweries gross margins are. BBC has alot more pressure from investors on profit, not saying others don't have pressures and obligations to meet .
     
    quetzal013 likes this.
  11. hopfenunmaltz

    hopfenunmaltz Jun 8, 2005 Michigan

    The drought had more of an impact on corn production, so much that farmers looked to other grains for feed. That is what drove up prices for malt from the US and Europe.
     
    quetzal013 likes this.
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