Omnivore - Are craft beer prices out of control?
As the dollar figures rise, do prices accurately reflect costs? And what does it mean for the micro vs. macro battle?
On an Atlanta beer listserv in early April, a conversation about the pros and cons of climate-controlled distribution and its effect on craft beer prices pivoted into a more general thread about whether or not said prices are rising at a rate that is incongruous with the rise of beer-production expenses. Like any great listserv, this one is a combination of invaluable niche-topic information and opinions of people who are incredibly passionate about said topic. As a result, threads often spin out of control, changing subjects altogether or sometimes they become devoid of a point entirely. So it wasn’t entirely surprising when this thread, ostensibly about refrigerated units carrying beer all over the country, started examining the following question: Are craft beer prices out of control? Eric Ohnemus, a 50-year-old computer programmer/systems analyst and Atlanta resident of 17 years, got things started.
“My opinion is that the cost of beer is ridiculous already,” Ohnemus wrote. “Paying $9-$20 for a six pack of beer is outrageous. Bomber prices are even worse.”
I got in touch with Ohnemus to flesh out his thoughts. He first noticed the price escalation a few years ago, when grain and hop shortages started driving up the prices of those commodities. But Ohnemus points to the fact that craft beer was also gaining popularity and larger markets. He doesn’t think the added expenses justified the end price, but then again, it’s hard to say. “Terrapin Rye Pale was a staple beer for me,” he says. “When I first started buying it, a six-pack cost $5.99. The price went up to $6.99 after the hop and grain shortage. The same beer now costs $8.99. That’s a fairly substantial jump for what I consider a session beer. What’s causing this type of price increase? I don’t know. But I am not buying or drinking as much as I did in the past because of this.”