Beer prices worry students
By MELISSA LOU
News Writer
According to students and liquor store owners, an across-the-board increase in American beer prices has marked the last weekend before finals frenzy.
"The price increase occurs every year, always around the end of November," said Mary Beth Lang, manager of Belmont Beverage at 254 N. Dixie Way in South Bend. "Last year the breweries did not raise the prices, which was an unusual move for them," added Lang.
According to local store representatives, the change will affect retail prices by increasing them from at least $1 to $2 per case. Students who enjoy tap beer said they found that the prices for kegs went up about $4 to $6 a keg.
Ross Spore, co-owner of Bullseye Discount Liquors, commented on the possible negative impact of the timing for the increase. "[They] hit at the same time that the statewide hike in sales taxes occurred," he said. Consumers will find they are paying more for the beer itself, as well as more in-state sales taxes, now up by 1 percent, said Spore.
Students who prefer international or specialty brews remain unaffected, as microbreweries and imports did not change their prices. Microbreweries might still increase their prices during the upcoming year, according to Lang.
Students reacted in varying degrees to the change. Senior Dan Crowley said he was surprised to hear about the boost in prices. "It might cut back on consumption a little, since my bank account isn't exactly overflowing," said Crowley. "The increase might make me look into some of the smaller breweries as an alternative."
Senior Eric Gobel said he does not believe that this change will really affect his personal consumption habits. "Since the beers that I purchase are a little more expensive anyways, the increase probably won't affect me," said Gobel.
Saint Mary's senior Alisa Driscoll said she might consider changing which beverages she purchases, but was not overly concerned about the price increase.
"It just means I either have to switch to a cheaper beer or compensate by working more hours," said Driscoll. "The increase will probably push me to try the local brews, which were not affected by the boost, but I doubt I will switch completely."
Senior Christopher Boehnen said he is definitely worried about the increase in beer prices. "We like to throw big parties," said Boehnen. "Either this [change] will affect the amount of parties we have or the amount of beer we consume at them. It might also affect how many people we invite and who we let in."
Due to the parties, Boehnen said he purchases mostly kegs, an area where the increase is most dramatic. This means that for high consumers like Boehnen an increase of a few dollars adds up and becomes a larger problem. However, Boehnen said that the change would not affect his loyalty to national brands or motivate a change toward hard alcohol.
"Beer is still cheaper than hard liquor," he said. "The higher prices make them more comparable but not cheaper and for parties kegs are still the best way to purchase beer."
In general, the liquor store managers said they are not overly concerned about the hike in prices, but Bullseye has anticipated the end-of-the-year rush and maintained some of their prices. "We held the prices per case for certain beers, such as Bud, Bud Light, Miller Light, Miller Genuine Draft and Coors Light," said Spore. "Six packs, 12-, 18- and 20-packs will reflect the increases."
According to Spore, "Students buy more [beer] in cases [and] I think this is because the weather outside is not conducive to keeping kegs."
"We are watching how the market reacts, as keeping the price per case the same has reduced our margin of profit," she said. This means that Bullseye cannot keep prices low for a long period, according to Spore.
Spore said she is confident that the increase will not affect long-term sales. "Even though we expect [the increase] to initially affect sales, people will get used to it and restructure their budgets accordingly," she said.
All News Stories for Monday, December 9, 2002