Monday, January 12, 2009

Followup to Beer Price Stability

Weyerbacher states that the price of packaging went up in 2008--glass and cardboard.

Though our costs for Hops and Malt have not decreased we have experienced increasing costs in cardboard and glass, all packaging went up in '08 as a matter of fact.

Well, all commodity prices went up in `08 until they started to deflate towards the end of the year. For example, I scrapped a Dodge Neon for the unheard of price of $400 early in the year. Right now they're offering $300. That's a 25% drop.

I read somewhere the costs to produce and sell beer can roughly be split into thirds: 1/3 for production costs (labor, energy, malt, hops, water, yeast, etc.); 1/3 for packaging and distribution; and 1/3 for marketing. I would bet that this breakdown is for Coors, Miller, and Budweiser, and not your average craft-brewer. It would be interesting to see the breakdown for a craft-brewer.

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