prices

Beer lovers beware, your favorite microbrews may be at risk. Last year, beer prices were on the rise due to the cost of barley, and this year a worldwide shortage of hops is making things even worse. Due to a bout of bad weather in Europe — along with decreased production in the US — the price of hops has risen 20 percent for most varieties, and up to 80 percent for specialty hops. This leaves many specialty microbreweries scrambling.

However, the folks at Samuel Adams are actually doing an interesting thing. They're selling their extra hops at below market value. The company said:

The purpose of doing this is to get some hops to the brewers who really need them. So if you don’t really need them, please don’t order them. And don’t order them just because we’re making them available at a price way below market. Order them because you need these hops to make your beer. We’re not asking questions, so let your conscience be your guide.

We hope this makes brewing a little easier for those hardest hit by the hop shortage.

I think this is a really interesting choice for Sam Adams. Instead of taking advantage of the situation, they're reaching out to help the community. I find their actions to be rather diplomatic and selfless. How about you? What do you think of the situation?

Last week, Hershey's succumbed to the rising prices of dairy and wheat products by hiking up its chocolate prices. This week Kraft Foods and Kellogg will be doing the same. This means you should be seeing an increase in your Rice Krispies, Eggos, Kraft Singles, Mac 'n' Cheese, DiGiorno pizzas, and many other products from these companies.

This is bad news for our slowing economy, and is actually the largest jump in food prices since 1990. Have any of you seen signs of rising prices in your markets? Do you think the price hike will affect the way you eat?

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Attention all you candy freaks! Looks like it's time to start pinching your pennies. This morning Hershey Co. said that it will raise the prices of its candy bars.

The price raise is being pinned on the rising cost of milk and cocoa, and Hershey is defending the decision by stating that its products contain more milk and cocoa than competitors. Hershey spokesperson Kirk Saville said:

"While we have no way of knowing what others are thinking, or what their cost situation is, we do know that within the category our products include far more pure milk chocolate and solid chocolate than our competitors."

For a while, Hershey was looking into changing its formula to lower milk usage. However Saville had no comment on whether or not Hershey's is still planning to go down this route.

The price increase will be effective immediately, and it will be about a 3 percent increase across a third of its US candy line. How does this make you feel? Will you still purchase Hershey's candy, or will a price increase make you think twice?

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Starbucks fans, you may need to break out your piggy bank. Due to the rising cost of dairy and the increase in fuel prices, Starbucks is raising their prices by 9 cents. This is the second price increase in less than a year. - iVillage

Don't go to the farmer's market because it's too expensive? You might want to reconsider your thinking. Here's a breakdown of farmer's market prices versus Safeway prices. - Becks & Posh

Quick! Run out and stock up on beer!
Pretty soon gas prices won't be the only reason to think twice about another beer run. Turns out that the cost of barley is rising fast and an increase in barley prices could translate to an increase in beer prices too.

It also doesn't help that production numbers were already down, energy prices already up, and the cost of raw material (like aluminum) also up. In fact, several breweries have already raised prices due to the raw material costs, however, you might not have noticed since distributors have been eating the cost.

Those price increases aren't always felt in consumers' pocketbooks. Distributors and retailers frequently eat the costs themselves. But with prices shooting up quickly, that could soon change.

Bernstein Research analyst Robert van Brugge forecast that this year's barley price increases will impact brewers' cost of goods sold - or the cost of the raw materials used in production - by 1 to 2 percent in 2007.

The analyst said he believes brewers will be forced to pass along some of that increase this year to consumers.

So run out and stock up! It's recommended that most canned beer should be consumed within 3 months of bottling. However some strong ales can be stored in the fridge for up to 6 months. Now, I'm not saying you can't drink it after 3 months, but it's definitely going to taste better if you drink it before.

Source: Forbes