Beer Costs Tied to the U.S. Economy - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Beer Costs Tied to the U.S. Economy

Amanda Davis Amanda Davis
Restaurant owner Ever Gonzalez Restaurant owner Ever Gonzalez

It can be found in sports arenas across the nation and draws many people to the local tavern. Now experts say a poor economy is effecting one of America's staples, beer.

Beer makers have been forced to raise their prices because of the skyrocketing price of hops and barley.

NewsChannel 10 visited a local restaurant to find out how they are handling the increasing costs.

In the last year a pound of hops has gone from four to forty dollars.

The price of barley, one of beer's other major ingredients has doubled.

Amanda Davis says she's already seen a difference.

"Yes, definitely actually I had just gone to the store and gotten some and it was more expensive than it was before."

Restaurant owner Ever Gonzalez says beer is one of his most popular beverages. Although he's had to raise prices customers are still buying.

"They really like it, we have to give them what they want," but he says some customers have complained.

"It went up probably like a dollar or two on a case so that means we have to raise up the prices higher and yeah our customers do kind of complain and stuff like that."

Hops and barley are in short supply mainly due to a poor crop season over seas and the falling value of the dollar.

Small brewers are expected to feel the pinch the most because larger brewers negotiated long-term contracts when prices were lower.

The larger brewers also locked up supplies that smaller brewers are no longer able buy.

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