Grin and Beer It: Some Beer Prices Will Increase

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KANSAS CITY, Mo. - Big beer producers like Anheuser Buschare raising their prices, according to a report from MSN.com.  The cost of ingredients, packing materials, and production in general is going up.  "Beer business daily" predicts an increase of 55 cents per case of Budweiser, for example.

A representative of Boulevard Brewing Company in Kansas City says just because the big businesses are raising prices, it doesn't mean the smaller companies will too, but price increases could be coming, especially since the cost to produce beer and ship it is getting pricier.

There's a lot that goes into making Boulevard Beer.  There's wheat and water of course, but there are also glass bottles, cardboard boxes, and gas to ship beer from place to place, and all that gets expensive.

"We saw a lot of increases in 2011, and we did have to make adjustments at that time, but this year we've seen things moderate a little bit," said Jeremy Ragonese from Boulevard Brewing Company.

While prices may be moderating, the drought in the nation's heartland has beer producers concerned.  Boulevard Marketing Director, Jeremy Ragonese says Boulevard feels that "pressure" right now.

Apparently so are bigger companies, according to the reports, Anheuser Busch will raise prices this fall, varying by brand and market. Boulevard's higher costs may take awhile to trickle down to the rest of us.

"We do have contracts that are based on more of a long-term engagement, so we're able to moderate those costs a little bit so the impact isn't felt immediately to the consumer," Ragonese said.

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