Craft Beer Prices

[studio1]

Finally...I found a craft beer that I like availabe in a dozen box for less than $30! (admittedly on special at Farro Fresh in AKL).

So it seems to me that we are sorely lacking in realistically priced craft beer. I wanted to open this up for discussion - obviously there is a supply / demand issue going on which has historically kept the prices high (ie...not enough demand to warrant economies of scale).

But I have many friends now who are slowly waking up to all things beery....but the only affordable/available option to them seems to be something like Coopers. A dozen beers seems a mininimum for a typical party I go to - who can afford a $45-$60 dozen? At the moment it seems people will supplement a mega-swill doz with a few bottles of craft - from what I have noticed.

I'm looking forward to being able to buy a 6 pack of something I really enjoy for around $15 (thats widely available). On my recent trips ot Melbourne/USA craft beer is avaiable at a reasonable price at many suburban (and even rural) bottle shops. Then again...craft beer is available on tap a lot more too.

I guess thats why I brew....

Anyways - will be interesting to hear some thoughts around this.

[Alelover]

How about a policy of minimum cost per liter of alcoholic beverage sold, not pure alcohol tax. Say $10 minimum per liter, this would make 3 stubbies of sugar solution (tui, speights, cd) $3:30 each but would not affect the cost of a bottle of craft beer. Craft beer would then become an attractive proposition. The tax would also encompass wine, woodys and all the other alcopop stuff. It would not affect the cost of a pint in the pub and would control the abuse issue.

[Stu McKinlay]

price fixing... isn't that illegal?

[James P]

Yet the wholesale electricity price is fixed to the highest cost producing power station....

[HerrSchnapps]

But I can think of some unintended consequences from this: an increase in price of craft beer. It's a 'premium' product, with it's price is set by a whole bunch of factors: production costs, shipping, middlemen etc, but I would say also the price of inferior substitute goods, such as the likes of Tui et al.

Make mainstream beer relatively more expensive, and suddenly craft beer is both less of a premium product, and in higher demand (as Tui et al is an inferior substitute)... aaannd, prices rise (and I can imagine all else being equal would be true for a lot of craft breweries, I doubt many would have the capacity, or even want, to suddenly double their output)

[Alelover]

There may just be a chance in that situation that the sugar gangs may up their game and make some good beer to compete, after all people would be paying a premium price and expect more, that way everyone wins, more good beer available. Also consider economies of scale, if all craft breweries were running at capacity it lowers overhead costs and hence more profitability, more development, consumer wins...

[john henderson]

Weka Lager and Weka cider is selling in the dozen now for under $30, special down to $24.99. Now that is great value for money

[nzbrewer]

[Stu McKinlay]

bd [that's two thumbs up]

[Ian Marriott]

What I find interesting aboutt this conversation is that the tax issue aside for a minute is that you all seem content to buy or brew your beer and consume it at home. Yet there are bars around the country trying to supply good quality beer to a discerning market and hopefully educating and reintroducing good beer to few on the way... But yes it is expensive. Just as expensive, sometimes more so than it is for the large supermarkets to purchase the same product and sell for youm to take home. So if price is no object, why then aren't more people drinking in Hallertau,Tahi, Galbraiths or why aren't there more bars like this.
Because as we all know certain large breweries control most of the market including the price and if you are paying lots of tax then you are making lots of money.
Yep there many factors to consider and I know that the majority of craft beer suppliers do freight offers to make buying more attractive to commercial, operaters and this definitely helps. I guess what I am trying to say is that I would not change the quality of product I have chosen to purvey and that means NO lion or Db product or foriegn product made under licence. But if if became too expensive and the support was not there then I would have no choice. There is no point in producing a premium product if there are not enough customers to sustain it and yes price will become an option. We have seen may small breweries disappear because the product wasn't in the market. I think at the moment that there are some great brewers but terrible marketers out there. I very rarely get a call from any of my current suppliers to see if I want or need more beer let alone other brewers whose products I don't stock. Whether you like it or not you need to get the product to market to sell it. For the record: I believe is personal accountability when you have a drink! Rant over and a cool yule to all!!

[Greig McGill]

I know what you mean Ian. I love to go out and drink in a nice pub or bar. I do so, even though as a keen home brewer, I always have one or more tasty beers on in my home, and often on handpump dispense. You still can't beat the atmosphere of a few pints at (insert favourite venue here).

As prices rise further and further though, I'll not stop. I will drink less. These price rises are not the brewers trying to gouge us, they are simply a reaction to increased ingredient prices, increased tax, and increased distribution costs. That doesn't change the fact that as price increases, demand decreases - just not always in a totally linear manner.

For myself, I'll keep supporting great bars. I'll give up almost every other form of entertainment spending before I'll give up that.

[Alelover]

Ian I totally agree with the marketing, as a craft beer drinker in the UK, I came to NZ and spent 18 sad months not knowing about the majority of craft beers available here. I only found them by actually searching myself. I know many people who love craft beer, but didn't know it was available.

[Tony]

Well put Ian.