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South Floridians Notice Rise In Price Of Beer

POSTED: 9:47 pm EDT May 16, 2008
UPDATED: 11:38 pm EDT May 16, 2008

The rising cost of food and oil is affecting another favorite product: beer.

Related Content: Survey: Will You Cut Back?

Prices for a six-pack of beer or a pint at the pub are on the rise.

Beer drinkers at The Pub in Pembroke Pines said they've noticed the increase.

"It's still cheaper than gasoline, but (it's) not a good thing overall," one beer drinker said.

Global demand and a bad crop year in Europe and Australia have tightened supplies for hops, barley and wheat, beer experts said. That, combined with a hike in transportation costs, is driving beer producers of all sizes to raise prices.

"Our costs have been up roughly about 12 to 15 percent, and the reality is they're still going up in some cases," said Brooklyn Brewery's Vice President of Sales Robin Ottaway.

By the time it reaches the tap or the shelves, retail analysts estimate that consumers will pay roughly a dollar more for a six-pack or pint.

It's a price that beer drinkers in South Florida are noticing.

"I can sacrifice other things," one man said.

"I'll probably stay in more," another beer drinker said. "But it's always a good excuse to have people over."

In Milwaukee, home to Miller Brewing, the company saw a slide and a shift in sales. Some consumers are cutting pack on premium beers and buying less expensive brands, Ottaway said. He said the sales of his micro-brews are, so far, holding strong.

"We've always said that beer is the world's affordable luxury, and it's times like this that you really find out whether that's true or not," Ottaway said.

Retail analysts said that larger producers are seeing a similar increase in costs because they can buy larger quantities of ingredients and lock in the price years in advance.

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