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Updated: 1:59 PM Jul 6, 2007
Will Drought, Corn Demand Drive Beer Prices Higher?
Does a greater demand for ethanol, mean less corn for food? Or fewer grains needed for your favorite brew?
Posted: 5:52 PM Jul 5, 2007 |
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Knoxville (WVLT) - Does a greater demand for ethanol, mean less corn for food? Or fewer grains needed for your favorite brew?
One of East Tennessee's major beer distributors says, not necessarily so.
Eagle Distributing’s Bob Winkel says farmers are close to reaching a record-in acres planted for corn.
That doesn't mean fewer acres for barley or hops.
The problem, he says, isn't what it costs to brew the beer itself, but how much it costs to get that six pack, or tall one, from the brewery to the distributor to your favorite supermarket or pub.
“Fuel costs, we're up 13 percent over last year. The year before that, we're up 10 percent. The year before that, we're up 30 percent. So you know, you're up 50 percent over three years in fuel costs alone, that really truly eats into your bottom line, and I haven't been able to raise my prices 50 percent,” says Winkel.
Winkel says higher packaging costs likely will prompt Anheuser-Busch and other brewers to raise beer prices early next year.
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