Pocono News Section

The Price of Beer Is Going Up

The Price of Beer Is Going Up - Wednesday, November 21, 2007 at 6:39PM EST

Reported by: Jill Konopka
Wednesday, Nov 21, 2007 @06:39pm EST
WILKES-BARRE, LUZERE COUNTY- The price of so many things are going up. Now you can add your favorite beer to that list. We stopped by the Lion Brewery where we found beer making supplies scarce these days.

What's a holiday party without good food, friends, family, and of course lots of beer? Sales are always up around this time of year. But what about an increase in the cost of your brew?

Jimmy Derocco, who runs Beer Super in Wilkes-Barre is surprised to hear beer prices are going up.

Derocco said, "The only thing I notice is all my customers coming in and asking about the price increase. We haven't felt it yet."

But here's why you will soon pay more, according to Lion Brewery Master Brewer Bob Klinetob.

Klinetob said, "Petroleum pricing, the value of the dollar in the United States versus the entire world and ethanol. People are finding it more profitable to grow corn for ethanol and to pull barley out of their feeds.”

These factors are causing a scarcity of barley malt, the beer's main ingredient along with hops, the stuff that adds bitterness to your beer.

"The overall supply of hops throughout the entire world is down tremendously this year," declared Klinetob.

The Lion men making the Stegmeir, Pocono and Lionshead brands go through 12 to 15-million pounds of barley and 50-thousand pounds of malt a year.

Last year they paid 70 percent more for malt. This year they expect to see another 70 to 80 percent increase.

"To the consumer that can equate to anywhere from $1.00 to $3.00 increase in a case of beer," explained Klinetob.

As a result breweries have to tweak their products.

Klinetob continued "I've made changes to some of our recipes."

That means changes on the beer store floor. The Lion's Head brand recently went up in price at Beer Super. Will other brands follow?

Derocco said, "I don't know when it'll happen. I don't know if it'll happen. I don’t know if it's a myth or if it’s true."
The Lion brewmaster said another reason why hops production is down is because it’s also being used in the pharmaceutical and cosmetics industry.