The one thing we thought inflation couldn’t hurt may have finally dug its greasy nails into our bubbly drinks and could be a contributor to the increase in beer prices. Inflation has affected the cost of ingredients and shipping for brewers. Therefore, prices for beer have increased. According to the consumer price index maintained by the Labor Department, the cost of beer bought to be consumed at home increased by roughly 7.7% as of November 2022 as compared to November 2021. That is higher than wine (3%), other spirits (1.7%), and whiskey (1.7%).
According to Bump Williams Consulting of Shelton, Connecticut, which provides consulting services to the industry of alcoholic beverages, the average price of beer at retail during the final 13 weeks of 2022 increased by 7%. The price doesn’t refer to prices at restaurants and bars.
According to the data, the cost of other beers, including Bud Light, Yuengling Lager, Miller Lite, and Coors Light, increased even more – by 10%, said USA Today.
During the same time period, the industry saw a decline in beer sales. Michelob Ultra climbed slightly (0.8%) throughout 2022 but declined by 2.3% in the closing weeks of the year.
A similar situation occurred with Heineken and Corona, where sales grew by 4.2% for the year but declined by 0.5% in the last month. According to the findings, customers simply choose to buy less beer or choose cheaper brands. Budweiser and Miller, as well as other lower-priced brands, single-serve beers, and the malt liquor industry, showed an increase in December. Dave William, vice president of Bump Williams Consulting, published the data. William explained that people hit a breaking point sooner or later. As a result of soaring prices, people spend less and shop less.
The Brewers Association’s chief economist, Bart Watson, stated that while inflation appears to be decreasing, it has still managed to hurt the beer. Williams explained that the beginning of the year is often a slow season for beer and that the upcoming period would be interesting to observe to see if the phenomena will persist. However, he emphasized that he does not expect people to stop drinking alcohol entirely but that the increased costs will force them to make different choices.
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