MillerCoors and Anheuser-Busch both announced a few days ago they plan on raising their prices.  Combined, the two companies account for roughly 80 percent of US beer sales. They cite rising costs of ingredients as the driving force behind the price change. I know the economy is not the best right now, but is raising beer prices really necessary since alcohol sales generally increasing during times of trouble? Considering the hops and grain shortages we have seen in recent years that we are not experiencing this year, their justification seems to be at least a little untruthful, or only a partial truth.

Bob Zieger, a sourcing expert at Ariba Inc., a Sunnyvale, Calif., supply management software and consulting firm, said he takes issue with the idea that “general commodity prices” are behind beer price increases. “After all, beer is not made from a combination of pork bellies, copper and cocoa. Its key price drivers, like hops and barley, are actually not experiencing a serious price increase right now. If there was ever a time to blame commodity costs for a necessary price increase, it was last year,” Zieger said.

In a tough economy, the easiest, although not always the best, way to increase profits (especially on something as marketable as beer) is to increase prices for the consumers. What does this mean for us, the beer drinkers?  As I see it, now is a great time for people to expand their horizons from Bud Lights, Coors Light, and Blue Moon and try some more adventurous microbrews as the price difference will no longer be so large. So next time you are browsing the beer isle, put back that six pack of Miller Light tall boys, and grab yourself a sixer from your local microbrewery!