Beer Prices Are Hopping Up

Pricey ingredients, weaker dollar hurt small brewers, while big boys see growth
By Ambreen Ali,  Newser User
Posted Feb 24, 2008 6:07 PM CST
Microbreweries have seen double-digit growth in the last three years, but have seen those profits dwindle because of rising costs.   (Getty Images)
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(Newser) – Wine's not the only drink that can have a bad year. Beer guzzlers should expect the price of craft brews to rise as much as $1 per six-pack in the coming months, because crucial ingredients—right down to the glass bottle—are more expensive, reports the San Jose Mercury News. Higher freight costs, a poor crop, and a weaker dollar have driven the price of hops up 400%.

The bump won't hurt beer giants like Anheuser-Busch, who sit on a multi-year supply, and that has craft brewers worried. Their segment has seen double-digit growth in the last 3 years, and the price spike raises fears that drinkers will go back to big-name options that cost as little as $6 a six-pack.