Beer Prices Going Up

By Harry Kimball, Newser Staff

Posted Aug 25, 2009 4:23 PM CDT

(Newser) – The nation’s largest brewers plan to raise beer prices in the fall, the Wall Street Journal reports. Anheuser-Busch InBev—maker of Budweiser—and MillerCoors will further test the notion that beer is generally recession-proof. “The environment is very favorable, we think,” says an Anheuser exec. Both companies have been able to offset sales slumps by raising prices in the last year.

The increase will likely keep pace with last fall’s, insiders say—about 4% in most markets. Though executives see an opportunity, one industry analyst says it's a dangerous game when consumers are pinched. “There's a lot of trading down going on,” he says, noting that while Bud Light sales were off nearly 9% in the last month, sales of Busch, its cheaper cousin, were up 3%.

[Images (3)]

[Quotes (1)]

Anheuser-Busch InBev logo is seen at the brewery headquarters in Leuven, Belgium. (AP Photo)

Packages of Coors Light beer. (AP Photo)

Bottles of beers including Budwieser and Stella Artois are seen on display. (AP Photo)

« Prev« Prev | Next »Next » Slideshow

There is still pricing available to take on these brands because beer is not impacted as much as other consumer products. - Brad Schwartz, MillerCoors

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Brewers Relieve Recession With Cheap Beer

Natural Light, Busch, High Life see sales jump

(NEWSER) - With the recession drying up cash flow, thirsty Americans are seeking out “sub-premium” beers, and brewers are marketing accordingly, the St. Louis Post-Dispatch reports. Anheuser-Busch is creating its first-ever ad campaign for Natural Light, whose sales are up 4% this year; MillerCoors is pushing Miller High Life, whose sales have risen 1.6%. More»

MillerCoors Testing Mini-Keg for Fridge

(NEWSER) - MillerCoors is trying out a novel presentation of its Miller and Coors Light beers with the “Home Draft,” a 1.5-gallon mini-keg that stays fresh in the fridge for a month, the Wall Street Journal reports. The set-up is similar to boxed wine. Amid a drop-off in domestic beer sales, repackaging has become a go-to strategy for brewers. “In this economy, we are seeing an increase in packaging innovation,” a consultant says. “In many cases, it can be less costly” than an entirely new product. More»

Bargain Brewskies Buoy Breweries

Cheap beer sales are rising faster than pricier options

(NEWSER) - Cheap brews are giving breweries just the boost they need during tough times, reports the Wall Street Journal. Economy suds such as Busch, Miller High Life, and Pabst Blue Ribbon are rising faster than the nation's overall beer sales and helping companies weather the economic storm. A short time ago, drinkers were splurging on pricey "craft" beers, but now they're saving their pennies. More»

Here Comes Kid Rock Beer

(NEWSER) - The auto industry may be tanking, but Michigan has a new small-scale savior: Kid Rock Beer. A Michigan brewery has landed a tax credit to produce a line of beer with the rocker's name and image, the Detroit Free Press reports. It's expected to create about 400 new jobs in the state, and the beer should be in stores by mid-spring. More»

Tastes Great or Less Filling? Old Ad Slogan Coming Back

(NEWSER) - Does it taste great, or is it less filling? Miller Lite drinkers can have it both ways, the Chicago Tribune reports: The beer’s 30-year-old slogan “Great taste, less filling” is being resurrected for a fall advertising campaign coming to a TV, radio, and store near you. Parent company MillerCoors is trying to unseat light-beer king Anheuser-Busch. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website