Price of Beer on the Rise. Why?

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Gas isn't the only thing on the rise. If a pint of beer at your favorite pub isn't costing you more now, it soon will.

Cleaning spent grain out of stainless steel brewing tanks is not one of the more glamorous tasks a brew master must do. But even the fun part, that is making the beer, is getting more challenging for brew pubs like the Los Gatos Brewing Company.

And for the little guys like the tied house, hops and barley are what gold is to a jeweler. Tied House Brew Master Ron Manabe is a chemist by training, but he's become a near expert on commodities.

That's because corn is used to make ethanol for your gas pump. As for the beer in your glass, well the grain used to make it doesn't fetch as high a price as corn. So fewer farmers grow it, causing a shortage. The result is like gas prices, beer prices are on the rise.

At the tied house, that could mean a 25 cent increase for a pint. Los Gatos Brewing Company has already raised prices by 75 cents. It's still not quite enough to get beer lovers to begin rationing.



 
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