Economy, Beer Prices and Consumption

Economies are cyclical so there will always be recessions and recoveries, and prices only trend upwards. At this point in our lives - empty nest and about 6.83 years from planned retirement - if either of us loses their job due to a recession, then we could get by on one income for a year or two. I'd feel guilty about continuing to buy more craft, but luckily I have enough cellar to get me through a couple of years at the low rate I drink. Drinking is low priority compared to bills, so eventually I would have to give it up if financial issues persisted.

 

The big change for me would be sticking to cheaper beers. No more 15-25 dollar 4 packs (unless it's high abv, 16 oz and at the low end of that price spectrum) 15 packs of all day and sixers of victory at sea would probably be my daily drinkers.

 

I am already seeing beer prices rise to the point that I no longer seek out “special” releases. Too many good beers out there for $20 16 oz four packs. If the prices do rise considerably I am more than happy to fill my fridge with Sierra Nevada and Firestone. Yes, I can find fresh Firestone in my area.
Also, I’m finding more of my budget going to Homebrew. $60 - $80 for 5 gallons of a juicy ipa/dipa that I get to decide on what hops I want? It’s a no brainer.

 

Yeah I treat beer like I do wine, try to find the best I can for the price point I want to pay. I am not a fan of paying > $10 a sixer on a regular basis. I am really jonesing on Live Oak and Celis 6 packs at $7.99. I do throw down the $$ on the ba stuff, but normally my everyday drinking I am trying to stay low ABV and low $$. I splurge on the weekends when I get out

 

As someone who followed the Atlantic City debacle closely I have had this nagging feeling about the economy OP describes since Jan. of last year. And beer prices are steadily rising too.

I may have to get back to homebrewing. I haven't done much since failing in attempt to open a brewery with two other homebrewers a few years back. It's hard getting motivated for five or ten gallon batches after brewing much larger batches. Last time I was strapped for cash some years back I made a vow to drink nothing but homebrew for the duration, and it really saved money. I could do it again for sure.

 

Simple for me, really. Bring five years away from retirement working in a business that is struggling with new management bent on turning us into a hipster company, my beer dollars spent would drop to zero. I might home brew more, anticipating time on my hands, but even that has a cost.

 

I have always thought that the craft beer "boom" is closely tied to the current bull market, people have lots of expendable cash. I think that when we do hit the next recession (and we will) craft beer is going to take a hit, a big hit. I think the smaller mediocre breweries will go under and the larger and better breweries will be forced to cut margins to compete to sell beer. We could see prices come down from the ones who survive, just to compete. I would also think breweries would pull back distribution. One thing I do know is,if (when) the downturn happens you may be able to buy large scale brewing equipment really cheap from all the places that close.....

Let's hope that day is along way from happening.....

 

Interesting take on home brewing. I'll have to reevaluate taking that hobby up. I didn't want to spend the money on equipment and ingredients when I could buy good beer otherwise, but sounds like I need to look more into it from a closer perspective.


When the economy tanks, I could see my beer budget dropping considerably. I pretty much spend my "fun" budget on racing and beer, with an emphasis on the latter. I could switch to $10 mix six packs and continue to try beer that way. Something I do from time to time now anyway. More days of stocking up on limited bombers and 12oz bottles would be over.

 

Given the hotheaded approach of our compromised president. It could get very interesting for breweries in a number of ways. Grain prices are likely to reflect that, and the price of new shiny steel (that is coming from China) is definitely going to reflect that.

 

How do you see these two things as being interrelated? Beer prices have been rising consistently, lately, and the economy is doing just fine (for now).

As others have said, homebrewing is a pretty decent option. You can get started for under $100 for equipment (if you source it wisely, like on craigslist, and are decently handy) and ingredients are not that expensive. As it stands, however, homebrewing isn't that much cheaper than buying beer commercially, depending on the style, of course, when to take time into consideration.

 

Answer: homebrewing.

Make the styles/types of beers you want and make them exactly the way you want.

Cheers!

 

The last thing I want to think about when I am drinking is politics and the economy. Working in the medical industry, I am in constant fear of how drastic adjustments in healthcare and insurance reimbursements will impact my industry, but for now, it's party time. I'll adjust when needed..

 

I'll get by even if I hafta brew my own.

 

I like quality 12 packs in the $15 range and buy far less of the $ 14 -16.00 four packs. Jacks Abby 6 x16 oz for about $ 10.00? Yes please.

 

The old joke that beer is recession proof is honestly pretty factual. Maybe I won't make trips to seek out beer, but I'll be able to splurge on a few 6's a week as long as I'm employed if another recession hits like it did in '08.

 

As long as I have a roof over my head and food on the table, I'm good. No beer? No problem.

 

Homebrewing after initial investment is pretty cheap. I can make a pale ale with pale malt and cascade for about 16 dollars for two cases worth. No brainer for me. I'm already at 90 percent homebrew. Only thing I buy now is BOurbon county and a few growlers a year from my local breweries. Occasionally a Founders 6 pack.

 

Like other posters, homebrewing increasingly wins my disposable income over commercial beer. This has nothing to do with my economic circumstances but is about personal principle. It's becoming harder for me to justify paying the sorts of prices I'm seeing for a good swathe of commercial beer. I'm certainly willing to pay within reason for a good barrel aged stout, quad, RIS, or a number of other styles that are more involved to brew. I'm less willing to plunk down some of the prices I'm seeing for simpler styles that while solid, are nothing terribly exceptional. I guess it's safe to say my purchasing decisions are driven by my personal perception of the value of a beer at its price point.

 

Maybe someday you will 'take the plunge' and make these types of beers?

I homebrewed a Quad (my second time brewing this beer) last spring (June 2017) and it my intention to drink these beers over the next 4-5 years. I drank one a week ago and boy o' boy that beer was tasty. I sure hope I have the fortitude to let these beers last for another few years.

Cheers!

P.S. There is a real economic reason to brew a beer like a Quad. Two cases of a Trappist beer like this would cost me hundreds of dollars. Needless to say I brewed these beers for significantly less than that.