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Read Thread: The Price You Pay...

Re: The Price You Pay...
Board: Beer, Wine, and Milkshakes
Reply to: #151117 by BrewHiker
Nov 14, 2007 5:34pm
Thread (disabled) Board
{Many of our beers will increase about $2.50 per case. Our ingredient cost for Hops Infusion IPA has risen $3.94, so we will raise the price $4.00 per case. Its typical for a business to markup a certain fixed amount from cost, so typically this $4.00 would result in a higher markup to keep our margins this same, but you can see why we can’t do that. When you reach for that 4 pack of Double Simcoe IPA in the New Year, don’t be surprised if its $2.00 to $2.50 higher. Our ingredient cost on this hop bomb went up $8.14 per case. You can see where this is going.}

Just to put a little more perspective on this issue I have to pipe in. I am a Brewmaster of nearly twenty years here at Redhook. While the comments on the increase in demand and diminished supply of hops and Malt are essentially correct I have to step in to comment that while most brewers will probably increase their prices to compensate for the added costs, it is NOT going to be a 20-25% increase in final costs-thats just silly.
Raw materials for a craft brewer ARE a large portion of the base cost but labor, packaging materials, shipping, etc. are typically even larger so a 10% increase in hops should only be a few % of the bottom line and a lot of brewers may just tighten their belts and suffer yet another erosion of an often small margin. I absolutely applaud the call to beer enthusiasts to support our industry to keep the wonderful variety of brews coming, and to take any small hikes in price with grace, I just take issue with saying the sky is falling to garner that support. If you love beer-support your local brewer!!

~Muddy Paws
Re: The Price You Pay...
Board: Beer, Wine, and Milkshakes
Reply to: #153294 by muddy paws
Nov 14, 2007 5:53pm
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I am a Brewmaster of nearly twenty years here at Redhook.


You... you're a... Brewmaster.... noooo... all this time and you've not said one word!?

I, for one, am not going to change my habits even if a six-pack costs $1 more or a case costs $4 more.

Say... are you going to bring back the Double Black Stout?

*S
Re: The Price You Pay...
Board: Beer, Wine, and Milkshakes
Reply to: #153308 by BrewHiker
Nov 14, 2007 5:59pm
Thread (disabled) Board
Quote You... you're a... Brewmaster.... noooo... all this time and you've not said one word!?


Oh? I never mentioned that to you? I learned that little tidbit while up north this summer...
Re: The Price You Pay...
Board: Beer, Wine, and Milkshakes
Reply to: #153294 by muddy paws
Nov 14, 2007 9:47pm
Thread (disabled) Board
I am a Brewmaster of nearly twenty years


*doing the Waynes World bow*

I'm not worthy......I'm not worthy

Shiloh
Re: The Price You Pay...
Board: Beer, Wine, and Milkshakes
Reply to: #153294 by muddy paws
Nov 15, 2007 11:08am
Thread (disabled) Board
Just to put a little more perspective on this issue I have to pipe in. I am a Brewmaster of nearly twenty years here at Redhook.


Hey! You just might bear some responsibility of the fact that my husband and I got together lo, these many long years ago. Our dates used to consist of going to the only place in town at the time that had craft brews on tap, ordering up a pitcher of Redhook and proceeding to try to pummell each other at backgammon. (I know- but it worked for us.)

Redhook is pretty much the bedrock of many of my fondest memories. So thanks!

DH came back from the homebrew store a couple weeks ago with a long face, having just heard about the increase in hops/malt costs. He bravely vowed that it wasn't going to stop him though. Guess we'll be ripping out the strawberries and putting in hops next summer.

Thanks for the additional info. on the state of craft brew. Na zdravi!