Tuesday, July 24, 2007

Bottoms Up


Oil prices making fill-ups costly? That goes for mug refills, too. High-priced gas has farmers scrambling to plant corn for biodiesel—neglecting barley, the main ingredient in most ales. Low supply means barley prices are up 79 percent in 11 months. High demand for steel (used in kegs) and glass is also making brew costs froth over.
*United States: Average pint up 3.8 percent in a year. Keg shortages have some taps running dry.
*U.K.: Top brewer Scottish & Newcastle raised prices 3.9 percent in March
*South Africa: SABMiller, facing a glass shortage, had trouble filling orders last month. Brewer to raise prices.
*Germany: Liter at Oktoberfest now $10.90, up $1 since 2005
*Netherlands: In February statement, Heineken CEO said beer costs could rise 7 to 8 percent
—Eleazar David Melendez, for Newsweek

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