By R. SCOTT RAPPOLD
Published: 02-21-08
What is the price for America’s new emphasis on energy independence?
For beer drinkers about a buck a six-pack.
Across the country farm fields once used for growing hops and barley for beer are sprouting corn which has become lucrative because of President Bush’s support of ethanol a corn-based alternative fuel. And then basic economics comes into play: With demand for hops and barley outstripping supply the cost for those commodities goes up.
That means lovers of craft beers and microbrews may be seeing red or feeling nauseated — and that’s not the effect of one too many oatmeal stouts.
“What we like to brew is fullbodied beer so we use tons more hops than the big guys do” said Josh Osterhoudt general manager of Bristol Brewing Co. in Colorado Springs.
Bristol raised its prices Feb. 1 by $1 per six-pack wholesale and 50 cents a pint at the brewery.
Osterhoudt said the price of hops barley and grains jumped anywhere from 70 percent to 200 percent recently.
The price jump isn’t unique to Colorado. Small brewers across the country can’t negotiate long-term deals like major companies.
Last year Bush announced a plan to reduce dependence on foreign oil by cutting gasoline use by 20 percent by 2017. As a key to reaching his goal he signed a bill requiring wider use of ethanol. Many farmers are now drunk with profits from the higher corn prices.
The beer price spike is the hangover.
“I’m growing (hops) in my backyard” said Phantom Canyon head brewer Andrew Bradley. “It might take more than a single year but at least I’ll have some real American hops to work with.”
Phantom Canyon hasn’t had to raise its prices because of the shortage but Bradley said he tried to talk to his supplier Friday about the 2009 purchase and they wouldn’t discuss a price. He expects the price for hops to go up in 2009.
Many liquor stores raised their beer prices in recent days including larger stores such as Springs Liquor Outlet and Cheers Liquor Mart.
At Coaltrain Wine and Spirits on West Uintah Street most prices haven’t gone up yet.
“We stocked up to try to ease the customer into it” said beer manager Austin Sherwood.
Within three to four weeks when the stock runs out craft beers will increase from a current range of $6.99 to $8.69 to $8.49 to $9.99 he said.
Customers are grumbling.
“They don’t like it but I don’t know if they’ll go back to drinking the Budweisers and Bud Lights” Sherwood said.
Colorado’s microbrewers are counting on their customers refined palates for beer to keep that from happening.
Osterhoudt general manager at Bristol said microbrew drinkers tend to have more disposable income than other beer drinkers and they prefer richer and full-bodied beers.
“We’re certainly hoping they’re going to plunk an extra buck for a six-pack and it’s going to be business as usual” he said.
