I appreciate the effort of Saranac Beer announcing the price increase

The Saranac Beer monthly email came today with their announcement of a price increase coming soon.

Not the greatest of news; however, I truly appreciate Nick and Fred Matt coming forward and informing their customers that this is something they have to do and their hands are tied.

We are all aware that prices everywhere are increasing; we see it every time we fill-up our cars. Unfortunately Saranac is being affected too and thus we are writing to explain why you are going to experience a significant increase in the price of our beers over the next few weeks.

We have heard from literally hundreds of our loyal drinkers over the years that you appreciate the fact that Saranac is somewhat more reasonably priced than other craft beers. Thus we know you are going to be sensitive to the fact that the price of Saranac is going to increase about 8%-10% in the upcoming weeks. This at retail will translate to an increase of $.50 for 6-packs and $1.00 for 12-packs. We recognize it is a big increase and we wish it was avoidable.

Unfortunately it is not. We are experiencing dramatic cost increases for malt and hops, the basic ingredients we use to make our beers. In 2008 the price of malt will go up over 100%, and the price of hops, depending on the variety, will increase from 40% to more than 100%. These price increases are unprecedented! They are the result of a number of factors we have no control over including a poor harvest in 2007, increased world wide demand, a decline in the acreage devoted to growing malt and hops and increased demand for that acreage for making ethanol. All in all, these tremendous increases in malt and hops are going to nearly double the cost for us to make our beer. This combined with the rising cost of package materials, energy and labor, is putting us in a position where we have no choice but to increase our prices.

We regret having to take such significant price increases. We have made every effort to minimize the amount that we pass along to you. In fact this increase will not offset all the cost increases we are facing. We have made the decision to absorb some of the increases ourselves, but we must take a significant price increase if we are going to be able to continue to make the quality beer you expect as a Saranac drinker.

We certainly hope you understand and will continue to support us. As always we thank you for your loyalty and support. If you happen to be in our neck of the woods, please come visit us. We hope to see you soon!


Sincerely,

Nick Matt Fred Matt
President Vice President

It might not be the beer you normally pick up, but I suggest you support these guys, go out and buy a sixpack of Saranac Pale Ale. While you're at it, buy a sixer of your local beer. They are feeling the same pinch.