In the past few months a bit of chatter over the slight rise in the cost of beer has risen over the various media venues. This is to be expected as weakened dollar and fragile global economy has and will continue to drive up the cost of commodities. Externally influenced factors aside, there has also been a bit of a buzz over higher priced beers whose cost is influenced by factors other than market fluctuations. There are numerous factors that affect the price of any given beer, and I need not head down a rabbit trail that’s already been paved, but I do want to address this particular cause of disgruntlement, as I saw a great case of “expensive beer shock disorder” tonight.
At my usual bottle shop tonight I examined a 750 ml bottle of Brooklyn Brewery’s latest release of Black Ops, again, for the second week in a row. There was a certain amount of hype going into the release of this beer, and rightfully so. The ever respectable Garret Oliver put a considerable amount of TLC into this beer: 11.6%, aged in oak bourbon barrels, and bottle conditioned with champagne yeast.
I first saw Black Ops over a weak ago, but did not purchase it, simply because I am typically not partial to bourbon beers, and I was not keen on dropping $18.00 on a beer I was not guaranteed to fall head over heels for. This week–however–I caved. Here is why:
As I stood examining the bottle and reading the label an individual exclaimed incredulously, “That’s a lot of money for a bottle of beer!“ The man was not being rude…he was just quite shocked at the price. He had been talking wine–not beer–with the store staff. Nick, the knowledgeable beer geek on staff quickly explained that while there were only 1000 or so cases of black ops produced, his store chain had received only five cases of Black Ops statewide, and here in Toledo, only two cases had made it. That’s 24 bottles of this one singularly unique beer for one metropolis of 651,000 potential Black Ops consumers. Besides the finer ingredients and aging, it seems that obscurity (supply and demand) boosted the value of this beer. After my wife pointed out that I hadn’t bought beer in several weeks, I purchased a bottle that will go into my cellar for a while. The man behind me was quite interested, and perhaps may dabble in beer.
While Nick satisfied the shopper’s curiosity, as I peeped into his cart and saw several bottles of what appeared to be mid range wine, I considered engaging him in further conservation. Is $18.00 really a shocking price for a 750 ml bottle of this quality of beer? The few bottles of wine in his cart easily cost between $15 and $45 per bottle (I strolled down the aisle he had picked them from and eyeballed the price tags), and I doubt they were as obscure as the Black Ops. I will give him that his wine most has age to weight the value; most likely it was aged three years. But then again, respectively, my Perseguidor, also aged three years, was just over $20.00 for 750 ml ($10.00/12 ounces).
If Milwaukee’s Best is the moderate standard for determining a costly beer, than perhaps Black Ops is a tad pricey. But is Boone’s farm the determinate for leveraging the value of a fine wine? My boss, an experienced wine connoisseur, recently told me that a well rated wine runs a minimum of $75/per bottle; with Boone’s Farm as the standard, that well rated wine or even the $30 bottle in the inquisitive man’s cart is outrageous. But if we are able to lump beer and wine in the same general family of “alcohol” and use the mid range $30 bottle good wine in his cart as the standard, the Black Ops is actually a bargain. The highly rated wine is $2.96/ounce (mid range about $1.50/ounce) while the highly rated beer is $.71 per ounce.
In perspective, even the pricier craft brews are actually quite inexpensive.
Like many of you, I am not in a position in life to fill my shopping cart each weekend with loads of craft beer. Yes, it is more expensive than what the majority of American beer drinkers consume, but the trade off is I drink less. But, compared to other fine beverages, like wine, I am able to drink more and, as per my preferences, I enjoy it more!
So next time you shell out ten or more dollars for that bomber or 750 ml bottle of special release or seasonal beer, I hope you cringe a little bit less as you consider the more costly alternatives in the vast world of alcohol.
Nice post, Nate. I’ve sold many a bottle of beer this way.
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I completely agree with this, and appreciate it! As a retailer of craft beer, I struggle with this often–especially with rare things such as this, or Founder’s small seasonal releases. This is a tactic I’ve used before, but not often enough, and will absolutely use in the future.
Thanks!
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Great post Nate. It reminds me of a video I watched of Sam from DFH talking to people at Google and he explained how he thought craft beer was an affordable luxury. In comparison to finer winers, liquors, watches and cars you can drop a lot less money on a really good bottle of beer. And saving money is very important to people these day but it is still nice to indulge when you can and craft beer offers that ability.
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@beerscientist thanks!
@Acorn Wine Shop thankyou! i hope your sales continue to increase! Where are you located?
@Mike Thanks! I will have to go search out that video…
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Very nice Nate. I try to explain it to people like this but you said it better than I do (and in much fewer words).
A lot of it has to do with the stigma that “beer is supposed to be cheap”, as demonstrated by that customer’s reaction to this price. The solution is education, which you are doing a fine job with.
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@billy broas thanks for the comment. i agree, there is that unfortunate stigma. I think wine costs more typically because of the additional cost of owning the land to cultivate grapes. Just because beer doesn’t incur this cost doesn’t mean it is an inferior product!
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Thanks for posting this, sadly in the Craft Beer World, we are stuck at the $6 a six pack model for regular beers, which is where it was at 20 years ago when I turned 21. All of the materials costs have risen, but people scoff at a $10 six pack. As a craft beer brewer, I do it because it is something that I love. Most of my fellow brewers are usually living paycheck to paycheck and not making a great living. If they own a house, it is usually because their spouse works and probably makes more than they do. I have a friend who is getting divorced and is really stressing about the loss of his spouse provided health insurance- he has Type 1 diabetes and his bosses cannot provide health insurance. When I hear a colleague is having a kid, I worry that I will lose a friend in the industry, because they cannot afford to be a brewer and a parent- I have seen this happen multiple times with some really talented brewers.
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Here you go Nate.
https://www.youtube.com/watch?v=HPOewnwgO0Q
It’s over an hour long but definitely worth the time if you have it. Get a beer and some popcorn and enjoy.
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@Todd Parker: Thank you so much for that sincere and eye opening comment. Honestly, after reading your comment, I felt a burden for you, your freinds, and family. Much has to change in the market for small brewers such as yourself. According to my boss, who has been in investing for 30+ years, it may be swinging toward craft beer. I would love to get together and discuss some of these issues further with you…I am only 50 minutes south of Southfield, MI. Would you care to meet up sometime?
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@MikeLovesBeer. Thanks!
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I still pause when a bottle of beer eclipses the $20 mark, but other than that, I typically don’t think about what beer should cost. But I still try to get the most for my hard-earned dough. I’m at the point where I really notice the bargains, like Dragon’s Milk or Long Trail’s excellent and affordable Brewmaster Series. Both offer a lot of value for the money.
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Just commented on this topic recently when it was raised by a reporter lamenting the “high-cost” of craft beer. I made the argument that with a few loose bills in my pocket I can grab an exceptional beer off the shelf. That same exceptional experience in wine requires a credit card. Spirits? A loan. You’re spot on Nate. Quality craft beer is still a bargain.
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Well said. It is also an asset to have a person like Nick to show others why it isn’t as expensive as they think it is
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Excellent article and very well thought out. This should be required reading!
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@Beer poet, right on, thank you very much. i’d love a link to that article if you can recall it.
@jason, thank you and yes, Nick is an asset. he is very knowledgeable about wine too, which means he can really sell beer. Him and a few other employees at this store are part of the reason we chose it over others.
@Sean, wow, thanks for the kind words!!!
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Awesome awesome awesome article.
This is the kind of thing that I’ve been explaining to my non-beer-loving friends and family for a long time now.
The subject that usually triggers it is when we talk about the beer that I not only paid $18 a bottle for but stood outside in line for several hours in order to buy it.
I usually ask them what they think they’d have to pay for a world class wine that’s very limited in production and only available at the top notch winery one day a year. They usually shrug their shoulders and then I ask them if they think they could get it for $18. They quickly shake their heads and at that point you can almost see the light bulb go off in their heads.
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We need more bulbs like this to go off. People are far too unaware of wine’s ugly cousin. I think the culture is changing bit by bit. Articles like this and people like you guys are the ones that are shaping the discussion. Let’s keep forging craft beer forward.
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Creating this type of specialty product is enormously expensive and really is a value I.M.O, and much good work has been done by retailers such as the one you cite, along with restaurants and foodies who see the value of pairing cuisine and high quality craft beer. However, many highly rated (say 90+) wines can be found in the same price range as the Brooklyn Black Ops, although admittedly not with the same relative pedigree.
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Good post Nate. I think there is definitely a stigma attached to beer and how much it should cost. People have a hard-coded price-point set in their minds about how much beer should cost and they freak a bit when they see a bottle of beer that’s $15 or more, or a 6-pack that’s $10 and up.
As Michael stated, little by little more light bulbs turn on in people’s minds and they begin to distinguish the beer they think they know, and the craft-beer that they have heard about.
Maybe craft beer needs a different name! For the most part, you can get a really great beer for less than a decent bottle of wine costs. Its an affordable luxury.
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Nice Nate, but my wife would say, “that’s just a rationalization” and she’d be right, but I think in those terms all the time. Is $70 a lot to pay for Sink the Bismark? Well it is expensive to be sure, but really not too expensive when you compare it to Whiskey or a fine wine. Everything is relative, it is just the Macros have dominated the world of beer for so long, people need to adjust to the notion that quality beer is more expensive.
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@Don, $70 is not a lot to pay for Sink the Bismark, if it actually tastes worth $70. I’m not gambling man, so I’m not willing to shell out 70 for it…hmmm so I guess is too expensive.
I see every logical argument as rationalization. Explaining why you use crest over colgate is rationalization, BUT, I refuse to see it as justification…if that makes sense. Now, if I was without a job and was choosing the Black Ops over feeding my infant…than it was too expensive, and this article was the fruit of justification.
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@Scott-TheBrewClub
“Maybe craft beer needs a different name! ”
Totally agree with that. I’ve been thinking for awhile now that you can’t really even put them in the same category. By them, I mean the American adjunct macrobrews and craft beers.
All joking/beer geekdom aside, they’re really so far apart that it’s not fair for either one of them to be compared to the other.
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I agree but craft beer is not only a bargain compared to wine, but craft beer is a bargain compared to cheaply made American beer (which is technically not American owned anymore). The amount of hops, grains and other quality products used in a craft beer greatly exceeds that in a Bud, Coors, or Miller.
So cheers to the value of a good craft beer!
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beer_scientist Reply:
March 5th, 2010 at 10:43 pm
Amen Barb! Thanks for commenting on the post. I think you’re right, comparative value shows that there really is no comparison.
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