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Enjoy that cheap beer now, because it may not last much longer.
The rising price of hops, malt barley and aluminum, along with higher energy and fuel costs, are pressuring breweries to increase the cost of suds. But Labatt Breweries and Sleeman Breweries, in southern Ont., are holding off as long as they can.
"We are constantly monitoring the cost of all things used to make beer and the prices have skyrocketed, but we have no plans to raise prices at this time," Labatt spokesperson Julija Hunter said.
Down Highway 401 at Sleeman, in Guelph, Ont., they are now locked in contracts that fix the cost of raw materials, but when those expire production costs alone will jump more than $10 million.
"We are all in the same boat. That is an awful lot of money for us to find. At some point we may have to look at price increases," chief executive John Sleeman said.
"That doesn't even count the cost of petroleum to deliver beer. We supply Quebec, Alberta, B.C. and those costs have virtually doubled in recent years."
InBev, which owns Labatt, announced at its annual meeting yesterday it will hike prices to offset the rising prices. InBev chief executive Carlos Brito said the company had implemented some price increases.
Labatt can resist price hikes now because pricing is still set by region and Labatt is hoping to sell more beer to offset the costs, Hunter said.
"We do things locally. I would emphasize the entire industry is faced with this pressure, but pricing is different from market to market."
While Canada has managed to remain immune to rising global food prices, a report from Scotia Capital Economics states it may be only a matter of months before prices start to climb here.
Most agricultural commodities such as grain, fuel and fertilizer are priced in U.S. dollars, so the stronger loonie has cushioned Canadians from many of these shocks. Consumers also have benefitted from stiff competition among grocery chains.
However, the United Nations Food and Agricultural Organization reports global food prices have increased 57 per cent from last year, while the price of rice has doubled.
The World Bank forecasts higher prices will last at least two years before moderating.
The rising price of hops, malt barley and aluminum, along with higher energy and fuel costs, are pressuring breweries to increase the cost of suds. But Labatt Breweries and Sleeman Breweries, in southern Ont., are holding off as long as they can.
"We are constantly monitoring the cost of all things used to make beer and the prices have skyrocketed, but we have no plans to raise prices at this time," Labatt spokesperson Julija Hunter said.
Down Highway 401 at Sleeman, in Guelph, Ont., they are now locked in contracts that fix the cost of raw materials, but when those expire production costs alone will jump more than $10 million.
"We are all in the same boat. That is an awful lot of money for us to find. At some point we may have to look at price increases," chief executive John Sleeman said.
"That doesn't even count the cost of petroleum to deliver beer. We supply Quebec, Alberta, B.C. and those costs have virtually doubled in recent years."
InBev, which owns Labatt, announced at its annual meeting yesterday it will hike prices to offset the rising prices. InBev chief executive Carlos Brito said the company had implemented some price increases.
Labatt can resist price hikes now because pricing is still set by region and Labatt is hoping to sell more beer to offset the costs, Hunter said.
"We do things locally. I would emphasize the entire industry is faced with this pressure, but pricing is different from market to market."
While Canada has managed to remain immune to rising global food prices, a report from Scotia Capital Economics states it may be only a matter of months before prices start to climb here.
Most agricultural commodities such as grain, fuel and fertilizer are priced in U.S. dollars, so the stronger loonie has cushioned Canadians from many of these shocks. Consumers also have benefitted from stiff competition among grocery chains.
However, the United Nations Food and Agricultural Organization reports global food prices have increased 57 per cent from last year, while the price of rice has doubled.
The World Bank forecasts higher prices will last at least two years before moderating.
Yes, the thread title is a blatant and outright lie intended to trick people into the thread but this is serious damn it.
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