Beer Prices to Rise as Costs Tick Up
ST. LOUIS -- Fall is prime time for beer with the National Football League's new season in full swing, the World Series race keeping baseball fans glued to their TVs and the holiday season just around the corner. However, adult beverage consumers could be in for sticker shot as beer prices are expected to rise.
Citing various media reports, MSN said that beer manufacturers are likely to pass along the rising costs of making beer to the consumer. Anheuser-Busch InBev, specifically, is cited as one brewer eyeing price increases on many of its beers this fall, and those increases will vary by brand and market. Chief Executive Carlos Brito has said the price of ingredients is rising in the "mid-single digits," according to the news outlet.
In addition, MSN reported some distributors in Florida were being warned of "pretty sizable hikes." Possible price increases could equal 55 cents a case for Budweiser products and as much as 75 cents a case for the popular Bud Light Platinum and Bud Light Lime, it added.
MillerCoors, the U.S. joint venture between Molson Coors and SABMiller, also said this week that higher prices helped it achieve underlying net income of $436 million, excluding certain items, in the second quarter, the news outlet said.
Anheuser-Busch has nearly 50 percent of the U.S. beer market, compared with nearly 30 percent for MillerCoors.