Beer Is Getting Way More Expensive—This Surprising Reason Is Why
It's no secret that inflation has hit everyday consumers extremely hard since the beginning of 2022. We're seeing inflation through astronomical gas prices, expensive common everyday items, and grocery necessities practically doubling in costs. Unfortunately, halfway through the year, the price of beer too may continue to rise.
Beer prices have already gone up 5% this year, according to the consumer price index (CPI)—current costs of consumer goods and services—which the U.S. Bureau of Labor Statistics reported in August 2022.
While beer has been increasingly out-pacing both wine and spirits—which only have CPIs of 1.7 percent and 1.5 percent—it took an even higher jump last month compared to the months of 2022 we've seen so far. Alongside the statistics, beer companies have been in the midst of announcing that they are, in fact, in the process of steadily upping prices in an effort to keep up with the tolls of inflation, VinePair reports.
The CEOs and CFOs of Heineken, Molson Coors, ABI (Budwiser), and Constellation Brands (Corona, Modelo, etc.) have all come forward recently to make statements on the matter. They claim that the higher prices are necessary to continue to keep their business afloat, but also assert that they are making efforts towards not compromising what customers can afford.
Beer companies don't just have to handle making a profit in the end, they also have to account for the packaging and production costs prior to even seeing cash flow. Due to inflation, the cost of aluminum has soared, and there have been some major can shortages causing a ripple in the beer industry, Wine Enthusiast writes.
So, if you're noticing a spike in prices when purchasing your next 6-pack of brews, you're not alone. Beer lovers everywhere can only hope that this is a temporary adjustment, but we'll just have to wait and see if it continues to climb from here.