Price of a pint expected to rise
Key ingredients costing more, say brewers
Last Updated: Friday, December 28, 2007 | 9:39 AM PT
CBC News
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The rising cost of beer's key ingredients likely means brewers will have to pass the cost on to consumers or halt production.
"The price of beer will go up, it has to go up. We're hoping the craft drinkers will accept that this is a reality we have to face," said Gerry Hieter, the executive director of the Craft Brewers Association of B.C.
Poor growing seasons, combined with subsidies for farmers in Europe to produce canola instead of barley for bio-fuels, have driven the prices for some barley and hops up by more than a-third in recent years, he said.
"Some breweries are probably going to have to shut down, if not permanently, certainly temporarily," said Hieter, who expects consumers will see prices rise in February or March.
Barry Benson, owner of R&B Brewing in Vancouver, agrees paying more for key ingredients will cut his profits by about 10 per cent.
"The smaller brewers, and maybe even the larger brewers, can't shoulder the weight," Benson said.
The expected price hike has also raised concerns in Britain, where the cost of a pint is expected to rise to £4, according to some reports.
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