Americans enjoy their beer, but the price to crack open a cold one has increased significantly, especially for popular craft beers and IPAs.
The rising costs are affecting thousands of craft breweries across the country.
Brian Jackson, the founder of Esoteric Brewing, is among the many craft brewery owners facing financial challenges due to inflation.
"It started in 2022 I believe when inflation started to rise, and nothing has really backed off," Jackson said.
Everything from electric and water rates to ingredients has increased sharply for these small businesses.
Watch a craft brewer explain why some beers could soon cost you more:
Which beers are your best value per ounce
So for beer lovers looking to keep their budget in check, Jackson recommends considering lighter options for the best value.
"I would say a light lager. That is the easiest and cheapest we can make," Jackson said.
Among regular-strength beers, Jackson explained:
- Ales are generally less expensive than other varieties.
- Lagers cost more because they require longer production times.
- IPAs (India Pale Ales), meantime, are typically the most expensive due to their higher hop content and additional ingredients that create their stronger flavors.
"If they want more flavor or more hops in their beer, we gotta push that envelope but that increases the cost," Jackson said.
Tariffs starting to have an impact
Beyond inflation, another factor is beginning to impact beer prices: tariffs. Bart Watson of the Brewers Association explains that increased tariffs on aluminum are significantly affecting breweries.
"Some brewers may choose just to eat the increase in cost and see their margins get reduced, but I think we will see it show up in consumer pricing," Watson said.
Watson notes that prices are also rising for imported raw materials due to tariffs on those countries.
"New Zealand hops, German hops or German malt for brewers that are making specialty products," Watson said.
He believes consumer choices will ultimately drive production decisions.
"Now is the time where you get to vote with your wallet, that's gonna drive brewer choices," Watson said.
If people stop purchasing the most expensive beers, brewers will likely reduce production of those varieties.
So if your favorite brewery raises prices slightly, consider being understanding as they work to maintain their already tight profit margins.
"We have to figure out a way to cover some of those costs so we can be a sustainable business," Jackson said.
So raise a glass to your local brewer as they try to keep costs down, so you don't waste your money.
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