Brace yourself: Beer prices are going up

[Mike Parker]

Brace yourself: Beer prices are going up

Brewers say rising commodity costs and lower volumes are forcing them to raise its price tags.

NEW YORK (CNNMoney.com) -- Beer drinkers beware: The cost of a cold one is going up.

Brewers across the globe are hiking prices to compensate for lower volumes and higher commodity costs in the recession.

Anheuser-Busch InBev, the world's largest brewer and maker of Budweiser, announced plans to raise prices Tuesday.

"We plan on taking price increases on a majority of volume and in a majority of markets this fall," Anheuser-Busch InBev said in a statement. "The increase helps cover some input costs."

The U.S.-Belgian brewer said prices will go up "across different price tiers" including its high and low-end brands.

The price hikes are part of a broader industry trend.

Heineken, best known for its Heineken and Amstel brands, said Tuesday that its global price increases have helped it turn profits despite sagging volumes.

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Anheuser-Busch InBev (ABI) was formed in November 2008 when InBev, which brews Beck's and Stella Artois, bought St. Louis-based Anheuser-Busch for $52 billion.

The looming price hike comes as sales volumes in the brewing industry have declined. Anheuser-Busch InBev said earlier this month that total beer volumes were down 1.5% in the second quarter versus the same period last year.

Heineken, based in Amsterdam, said Tuesday that price increases helped the company offset the pull back in consumption. Heineken makes and brews 170 international beers and ciders, but is best known for its brands Heineken and Amstel.

"The economic and trading conditions remain difficult, and there will be continued pressure on volumes in the second half of 2009," CEO Jean-François van Boxmeer said in a statement.

http://money.cnn.com/2009/08/25/news...nheuser_busch/