The Rising Cost of Beer
The three biggest beer brands--the Bud family, owned by Anheuser-Busch InBev, and Miller and Coors beers, now jointly owned by SABMiller--have raised prices. It appears that since they control 80 percent of the market, they can do as they wish. Joe and Jane Six-Packs across the country, already suffering through quite a nasty recession, let out a collective groan and “what the fuck!?”
According to the New York Times, this could provoke the Justice Department to initiate an anti-trust investigation.
“Both brewing groups typically adjust the price on a six-pack every year to reflect changes in the costs of ingredients like barley or hops," the Times reported. "But their ability to do so now, while their customers are hurting most, highlights the pricing power that has accompanied industry consolidation.”
Good riddance.
Not only does the beer suck, but it’s getting pricey. So unless you’re in the mood for a Steel Reserve or Olde English (oh shit, they’re owned by the Big Two, too!), it might be the right time to invest in your local craft brewery: they’re delicious and they’ve just become (relatively) less expensive. We all also know that Obama’s professed preference for Bud Light is complete and total political posturing bullshit.
The Times article notes that growth of craft breweries has come nowhere close to offsetting the consolidation in market share that has taken place over the last half century, as the Big Three (now two) wiped out small (and equally crappy) regional breweries.
And there’s precedent for Justice keeping the beer industry competitive:
“Taking on Big Beer might be politically popular. Moreover, there’s precedent for doing so. Years ago, the Justice Department sued to prevent the merger of Pabst, then the 10th-largest brewer, with the 18th biggest, Blatz. The case went to the Supreme Court, which in 1966 ruled the deal was anticompetitive and forced Pabst to divest Blatz.”
Ah, Blatz. The hipster beer that wasn’t.
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1. Bo said... on Aug 28, 2009 at 02:59PM
“Whoever pays more than $1 for a PBR kinda deserves what they get! $ for $, local brews consistently deliver more.”
2. Anonymous said... on Nov 16, 2009 at 03:37PM
“What's the going rate for 1/2 barrel Miller Lite? I've been paying $ 89.99.”