2008 Beer Price Increases
By now many of you may have heard of the very significant raw ingredient and material shortages affecting the small brewing community. These shortages are, as one might expect, driving prices up quite a bit. Our cost of hops is expected to at least double this year, and many breweries are already finding themselves short of key varieties. Every supplier I have contacted does not expect to have any non-contracted hops available until toward the end of the first quarter of next year. How can we brew beer without hops? Malt prices are up 30%, and may go higher after the first of the year. One of our suppliers even warned that some breweries may find themselves without ANY malt or hops available for purchase at some point in 2008!
Frightening as this sounds, through close work with our suppliers we should be able to reliably purchase malt and hops though the new year, although things look a little dicey for hops late in February if the new crop doesn't start to become available. Along with these shortages we are confronting massive price increases like never before and are forced to take action to bring our brewery's costs in line. After careful consideration it seems the only thing that will keep our brewery profitable and healthy is for us to raise our prices.
I'm sorry to say it, but we need to put a price increase into place at the beginning of the year. We simply have no choice if we are to stay in business. We have seen all of our costs rise roughly 30% in the last six months, from grain to glass, and we can't absorb such increases on the low margin business that bottled beer is. Hopefully you will understand, and knowing the commitment and pride we put into every bottle, continue to support our brewery.
After you've had an opportunity to read this, please feel free to email, or call, with any questions or comments.
Cheers,
