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100 Bottles of (Pricier) Beer on the Wall…

Filed under: Spending

Everyone’s chattering about oil prices but, with the Fourth of July weekend quickly approaching, you should be concerned about the costs of some other barrels-beer barrels.

I’m sure you’ve noticed the higher prices each time you refuel at the tap. USA Today recently reported that supermarket prices for a case of beer were up 3% in May from the same time last year. This is the biggest jump in beer prices we’ve seen in the past 2 ½ years. One of the primary causes (in addition to rising costs of fuel, cardboard, and aluminum) is none other than… cows. That’s right. Corn, a traditional feed grain, has become increasingly expensive now that more is being sold to make ethanol. Without this barnyard staple, farmers are turning to other feed grains-such as the barley that is malted to brew beer-to feed livestock.

But rising beer prices shouldn’t mean you can’t celebrate the Fourth, American style. According to the Beer Institute, Americans drink more beer on the Fourth of July than on any other day of the year. So how can you be patriotic without breaking the bank? More after the jump.

Instead of going out for beers, throw a beerbeque.

You’re still going to pay more for your beer than you paid last year, but the 3% increase in retail prices for beer beats the 3.8% increase on beer served in restaurants and bars. Plus, throw some hamburgers on the grill-getting revenge on those cows that ate all our barley sure does taste good.

Try Coors.

Ok, so it’s not exactly America’s beer, but it has seen less of a price increase than other brewers. Coors prices jumped less than 2% in 2007, far below the average 3%. This is because Coors beers are brewed using a proprietary barley the company developed themselves, so it isn’t subject to the same price fluctuations.

Some other major labels may even be speeding up the pace of their price hikes. In the wake of Anheuser-Busch’s recent rejection of InBev’s $65-a-share bid, the company announced its “Blue Ocean” plan to create value for its shareholders. As part of the plan, the company will raise prices on 85% of its beers. These price hikes, originally slated for 2009 to help the company cope with skyrocketing commodity prices, have now been pushed forward to October and September of this year.

So while you may pay more this year to celebrate America’s birthday, enjoy it now-the cost of your favorite brew looks like it’s only going up from here.

Vanessa Durante

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(1) Comment

This is an Excellent article!!! Finally someone is taking the time to address the REAL ISSUES in this country!!
Vanessa, there will always be place for you in my trailer!! Stop by and watch a little NASCAR sometime.

John Jidibinzki
07/08/08 @ 8:25 pm

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