Rising operating costs, particularly in areas like packaging and transportation, are taking a toll on the beer industry.
CNBC’s Stefan Sykes explains that companies such as Anheuser-Busch and Molson Coors have raised prices on many of their popular beers and seen bigger profits, “with consumers footing the bill.”
Sykes writes that according to data from the Bureau of Labor Statistics the price of beer bought at retail locations such as grocery stores “rose 5.9% for the 12 months through April 2023 compared with the prior year.”
The Bureau of Labor Statistics adds that the rate topped the overall 4.9% inflation for the same period.
“Since 2000, retail beer consumed at home has increased more than 72%,” Sykes reports. “The cost of beer has climbed even more for people drinking outside the home, jumping 102% during that time.”
Beer drinkers may have felt the impact of inflation on their wallets, but Sykes adds that the past year’s price increases helped some of the world’s largest beer makers see significantly bigger profits.
For example, in Anheuser-Busch InBev’s latest quarterly earnings report, the world’s largest brewer underscored a jump in profit “driven by price increases and getting consumers to spend more on premium offerings,” Sykes explains. “As a result, the brewing giant saw its core profit increase by 13.6% year over year to $4.76 billion.
“At the same time, beer sales increased only 0.4% from a year ago.”
>> Read more here.
Download the FREE Country Legends 97.1 app now!
On-air surprise: Joe Buck learns he is joining father in Pro Football Hall of Fame
Players ask for empathy, help for Antonio Brown after on-field incident
Ronnie Milsap - Dont you ever get tired of Hurting me
33 Years Without A Haircut: Woman Wins Longest Mullet
Florida sues realty company and reality-star founder for ‘swindling’ homeowners across U.S.
Thanksgiving 2022: Which grocery stores are open, closed on Thanksgiving?
15-year-old arrested in connection with deadly shooting at Oklahoma high school football game