Beer Buyers Beware!

A sad day for men around the world…  Anheuser-Busch InBev NV (EBR:ABI) is raising the price of its brewskis.  This hits home mostly because I like the cheaper beers and not that “good stuff” (e.g. hefeweizen, snow cap ale, other microbrews, etc.)

Rival Molson Coors Brewing Company (NYSE:TAP) is going to follow suit and increase their prices as well.  GASP!  Another blow as Coors Light was deemed my favorite cheap beer after a manly taste test amongst friends (please don’t ask to see pictures, it wasn’t pretty).  Brad Schwartz, VP of Revenue Management and Sales Development at  MillerCoors (MillerCoors is a joint venture of Molson Coors and SABMiller) had this to say, "We have seen very strong pricing to date this year, and we are projecting a favorable pricing environment moving forward."

The increases will occur later this year and should be in time for NFL season and Fantasy Football, LAME! They will cover different price tiers, although neither company revealed how much increases will be.

"We do plan on taking prices up in the fall on the majority of our volume in the majority of the U.S.," Dave Peacock, president of Anheuser-Busch InBev's U.S. division, told the paper. "The environment is very favorable, we think."

Beer prices in the U.S. have been rising despite the recession, likely because everyone is drinking to drown the sorrows of 50% losses on their portfolios and foreclosure woes.   They are capitalizing on our weaknesses!  We may have to go long to try and make up the difference for the increased beer costs.

Disclosure:  No positions in ABI or TAP.