January 22, 2009 at 8:00am
STEVE DUNKELBERGER: BREW NEWS >>>
I was chatting with Mike Davis, Harmon’s master brewer, regarding the state of brew pubs in a down economy. He shook his head early in the conversation. See, not only are patrons fewer and harder to come by as they seek ways to cut their expenses during these uncertain times, but the costs of brewing the beer is continuing its climb. The raw materials are at least double what they were just a few years ago. And now that the state is facing a historic budget shortfall and will likely fill that gap with taxes, brewers are bracing for the worst. Beer is seen as a vice that falls under the state’s “sin tax†categories politicians see as a cash cow when it comes to raising money since few folks protest increases on taxes for beer, cigarettes or other such immoral products.
That could mean the cost of a pint or a six pack will likely continue to go up in the year ahead. Buy now and stock up.
These likely increases further come at a bad time for the industry. Restaurants make a good margin on booze sales and generally keep the food operations from going under. With diners cutting back and higher costs on the way, restaurant owners are trying to find ways to make ends meet.
LINK: More beer news here
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