Rising fuel prices hurting local breweries
WATERLOO, Iowa (KCRG) -Rising gas and diesel prices along with inflation also has some local breweries raising their prices. “We’re getting hit by a lot of angles right now,” said David Morgan, founder of Single Speed Brewing Company in Waterloo. Morgan says another angle that’s hitting them hard is the gas prices increasing across the country.
“It cost more to move things, so ya if you move a truckload with stuff it’s going to cost more to get there, and a lot of times if we’re bringing stuff our way, the stuff on the truck is going to cost more as well,” he said. “When you’re talking about a freight number that you’re paying to get stuff somewhere or bring stuff in, if they’re charging you more, a lot of times it is because of gas prices right.”
Andy Anderson, an associate professor at The University of Northern Iowa says beer is not a hot commodity for truck drivers.
“So when diesel prices go up, that means it’s more expensive to bring these things in,” said Anderson. “And the higher the percentage cost of fuel, compared to the commodity itself, then you’re going to have a big problem.”
He says some breweries may have to face a harsh reality soon. “So what I think is going to happen is there will be a lot of industry consolidation,” he said. “And I think some breweries are going to go under because of this.”
Between that, and inflation raising the price of his products, and a grain shortage, Morgan says Single Speed is looking at raising prices in the fall, but he wants to do it in a way that won’t make his beer drinkers go broke.
“As the prices of the inputs go up,” he said. “We have to pay attention to the market, to make sure we can still take care of our people.”
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