Beer Makers Raising Prices on Budget Beers to Make Consumers Buy More-Expensive Brands

keystone_light.jpg

Better load up on the Pabst Blue Ribbon, Keystone Light and other budget brews that help this Great Recession go down a bit smoother: The nation's beer cartel is openly raising the prices of such beers in a blatant effort to squeeze consumers into buying their more expensive brands. So much for looking out for the working class, guys!
AdAge focuses most of its story on the subject of Keystone Light, a beer I never think of and have never tried. It's owned by MillerCoors, which is seeing their marquee brands lose sales, while Keystone has gained during the past two years. But since Keystone is cheaper than, say, Coors, the profit isn't as high.

Hence, the artificial inflation of the cheaper booze to force consumers to spend just a bit more to reach the next level.

The strategy has already paid off for Anheuser Busch, with CEO Carlos Brito telling AdAge that cannibalizing your own company is "the pain you suffer in the short-term when you're trying to do something that's great for the company."

Yeah, who cares about the consumer? More of a reason, folks, to go the craft beer route.

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21 comments
Mark
Mark

Hey Gang -- www.SaveOnBrew.Com shows the lowest ** advertised** prices across the country. Put in your zip. See the deals. Easy.  If craft beers are advertised, they show up.  Save some money on great beer!

Tobiah Goss
Tobiah Goss

LOL, yeah, craft beers are definitely the way. It's been about a decade since I've consumed anything lower than an 88 rating or a B+ on ratebeer/beer advocate respectively, and I don't miss the consumption of sudsy, bladder shattering, tasteless slop in the least.

Millardog
Millardog

i dont drink beer usually but when I do I prefer Heineken Tall Boys (500ml) as it is the best deal in town and a better beer by far than most brands in North America.

the most interesting man in the world (actually drinks Heineken)

JJ
JJ

I didn't realize that beer companies were in business for the cares of the consumer...I could have sworn they were in the business to make money...

Sippin Syrup
Sippin Syrup

less of a cost variance to buy better beer. That price gap may have been deterring people from drinking craft regularly or at all.

XungWoo
XungWoo

Wow, that actualy lloks prety good to me right now.

Deportgustabo
Deportgustabo

keystone beer is still better than any mexican beer.

americaspeaks
americaspeaks

nasty troll should be deported to alabama

909Jeff
909Jeff

Agreed!

Obviously a comment based soley on Corona or Tacate...

909Jeff
909Jeff

I dont doubt that you're right bill. Several of my friends have been to Ireland and they all swear that Guinness is ten times better served at a pub in Dublin.

Bill T.
Bill T.

I've drunk Tecate at the brewery and it seemed to taste much better than any Tecate I've tried up here, was that my imagination? How come we can't get Tres Equis up here, that ain't right.

Jon
Jon

PBR tastes like the Economy.

909Jeff
909Jeff

Jon,

Personal taste is important but done besmirch a great american brand.

Charlie Papazian, president of the Brewers Association, published the following tasting notes for Pabst Blue Ribbon in 2008: "A contrasting counterpoint of sharp texture and flowing sweetness is evident at the first sip of this historic brew. A slowly increasing hoppiness adds to the interplay of ingredients, while the texture smooths out by mid-bottle. The clear, pale-gold body is light and fizzy. Medium-bodied Blue Ribbon finishes with a dusting of malts and hops. A satisfying American classic and a Gold Medal winner at the 2006 Great American Beer Festival

Gustavo,

Again we find common ground... we might be long lost hermanos afterall!

Mike Billy
Mike Billy

When I go to a bar and see bottles of Miller Lite for $4 and Dogfish Head Midas Touch for $7 I never understand why I see people drinking Miller Lite! Midas has twice the alcohol and tastes a Hell of a lot better. Get with the program people!

Thefatlamb
Thefatlamb

Oh those poor college students are going to suffer, what are they going to do...

Joe Rodriguez
Joe Rodriguez

Don't drink those anymore, but still not cool.

Phil Nigash
Phil Nigash

Amen, Gustavo! The macrobreweries have already stabbed themselves in the backs. Now they're simply twisting the knife. I think people have already started getting used to the idea that quality far surpassed quantity when it comes to beer.

Bud/Miller/Coors know their days are numbered. When Anheuser-Busch plunked down $38 million to purchase Goose Island Brewery, the writing was clearly on the wall.

Ox D. Lieber
Ox D. Lieber

Something, something about forgetting history, something about repeating it, etc. What would you and your lawyer say about a doctor who based his diagnosis of an illness on "facts" of this quality and level of documentation? Careless? Unprofessional? Lame-brained?? It does not please me that you and your disciples are allowed to vote, but I guess the alternative -- no one to laugh at regularly -- is even worse.

gustavoarellano
gustavoarellano

Um, okay...

llm
llm

"Um, Okay..." is a great response. That person just does not like you Gustavo! But great article for those of us who have a sense of humor.

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