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Posted: Wednesday, 04 July 2007 11:03AM

Beer Prices Rising; Ethanol Fuel Production is One Factor




by WCBS reporter Marla Diamond

The price of beer is likely to leave a sour taste in your mouth this holiday season. The cost of beer is going up -- and that may be enough to make you want to cry in your beer.

Matthew Crescio is co-owener of Community Beverage in Elmhurst (Queens), NY:

"Beer has always been the blue-collar man's drink. It was always the working man's drink of choice. Now it's no longer."

Crescio says if a brew is part of your barbecue plans this year, expect to pay more:

"In this summer season compared to last, you can probably expect an 8-9 percent increase in the domestic brands. The imports are probably about a 10-14 percent increase -- which is quite high."

The spike is due to several factors, including the high cost of grain and increases in the price of cardboard used to store six-packs.

Crescio says cardboard prices have about doubled, and he points that the production of ethanol is now taking away part of the corn supply.

 

 


 
 
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