What determines beer costs?

22 ounce "bomber" bottles do cost more, but not quite twice as much and, so, not close to explaining the typical different "per ounce" cost of the same beer 12 oz. vs 22 oz.

Wholesale prices per bottle, when purchased in pallet quantities (from Buy Our Bottles):

12 oz. long neck = 24½¢ each
22 oz. bomber = 40¢ each
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Also, 22 oz. bottles save the brewer money as far as using fewer crowns and no need to purchase "sixpack" paperboard baskets. Brewers have justified the difference in change-over labor/downtime costs converting the bottling line from 12's to 22's and back to 12's, but most industries would spread that cost to both products, not to just the one.

Because they can charge that much and many beer drinkers still buy them. Traditionally, in the US brewing industry before the "craft era", larger bottles (16's, quarts and 40's) were always lower priced "per ounce" than smaller bottles (the standard 12 oz., and 7/8 oz. nips/ponies).

 

Do you have any info about whether those breweries with multiple sizes also were able to own more than one bottling line so that there was an automated system in place for each size?

 

Today, some do, some don't. And some manufacturers' bottling lines are not designed for quick and easy routine change-over of bottle size.

In the past, many breweries of the 200k bbl.>up size would own several bottling lines, and one suspects they were set up to run different bottles in the brewer's product mix- deposit 7/12/16/32 oz, throw-aways of various volumes, etc.

The 5m bbl capacity Schaefer brewery outside Allentown, PA (now owned by Boston Beer Co.), for instance, ran four filling lines in the 1970s - Cans / 12 oz. Throw-aways / Quarts / "Multi-Purpose" (which would probably include 7, 12, 16 refillable deposit bottles).

 

There are other costs which breweries incur as the business isn't entirely about the beer. In a pub you see all matter of brewery material such as bar towels, beermats and glasses marked with the brewery logo.This could perhaps be written down as advertising.
There is also the loss of casks and kegs, they don't all find their way back to the brewery !
Looking at the posts regarding malting , most towns and villages had a maltings and a formidable number of comfortable homes are named "The old maltings"
In my early homebrewing days I bought my malt locally from the Beeston Maltings, a typical business set up to provide malt for the local regional brewer.We had three such breweries in town, each with its own malthouse.

 

Thanks for the info. Been wondering about that for a while.

 

Define "greed."

 

yes I know its the get what you pay for, theory. Which in case of scholarships is just dumb, but human nature.

My point was the small guys that just have high costs of startup, but for awhile them charging the going rate of 5 or 6 a 14oz pint, just generates some serious cash while they are too small to distro. its one reason why IMHO we have so many startups atm. good beer is the other of course. still do not be fooled you do not start a biz to lose money, unless you are a fool or rich or both.

I am sure many of us old folks have seen the come and go of the various local little guys.

My issue is if the little guys are charging 5 or 6 a pint then to get my money their product better exceed anything I can buy locally. Again I am sure they hope all of us OLD folks hurry up and die so they can make more money off the young who do not watch their spending as much.

 

Do you think that other threads chart from hufpo is accurate?

 

I find it surprising that people have this strong negative response to the concept that the actual cost of the ingredients is so small in comparison to the price and the size markups of the distro/retailer are about 50%. Whether soft drinks, a box of cereal or just about anything in your cupboard, the cost of the materials in the container is often the smallest percentage of the final cost to the consumer. If you add the manufacturing, packaging, local warehousing and brewers margin you are still only halfway there. There is enormous cost in the initial transportation (esp nationally) with more warehousing and eventual distribution to the retailer and then costs to the retailer to shelve, sell and their own "loss to spoilage." Even post brewer, these costs are substantial.

The giant brewers address some of this with their own distribution but still have actual "distributors" and with their power, I would imagine the percentage of material costs and markups are similar if not more given the economy of scale.

Overall "craft" beer seems priced reasonably based on how quick much of it flies off the shelves. I will repeat I am impressed with receiving California releases in NC sometimes with two weeks or less on it and have to drive less than four miles to get it.

Good times.

 

As a homebrewer, I would say high ABV yeast costs the same. Some that you can buy are realatively cheap, those are called wine and Champaign yeast.

 

Now we all as 'beer people' do not help the price sometimes. Retail has always has been about the price that people are willing to pay. I have been in the industry (production side) for some time now and I have seen the cost of large format bottles increase over time, even the smaller sizes. All the members of a site like this appreciate what is considered 'specialty beer', this has a higher cost overall. I am always willing to pay more for a quality product.

 

profit

 

I know some breweries that were not greedy. They failed to have a profit and closed the doors. Sometimes the Sheriff closes the doors for them with evictions and padlocks on the doors.

 

So anyone that makes a profit is greedy? Apparently then, to avoid being greedy, you work for only what it costs you to get to work, buy clothes to wear at work and eat while at work...or else you're greedy too?

 

Sorry I didn't mean to be negative. I believe that greed is a human trait and some have more than others. God knows my business would be more "sucessful" if I were greedier. Just trying to answer the OPs question re: price

 

retailers and distributors have to make a good profit. Beer would be super cheap if you could buy in bulk from the brewery. But hey, that's what we call "too good to be true"

 

A big factor on what beer costs are is how much we as consumers are ready to pony up.

 

There's a vast difference between greed and working for a profit. And greed is pretty subjective, based usually on the opinion of the accuser.