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Bars & Breweries: Beer Is Recession-Proof
Julie Wolfe, Channel 11 Alive, www.11alive.com

Stocking and restocking the beer aisle: it's a story that plays all Memorial Day weekend at the Kroger on Caroline Street in Atlanta.

Chris Kunze says he'll pinch pennies on groceries but not on beer. "Definitely not," he said. "Taste is different."

It's the same story at Manuel's Tavern in Virginia Highlands. Patrick Puglisi takes MARTA. He doesn't pay gas money, but he doesn't baulk at paying beer money. "You just relax and you don't have to think about the gas prices and the problems with the economy," he said.

Just like groceries, the cost of making beer is going up.

Dave Guender from SweetWater Brewery says farmers aren't growing as much barley and hops. The steel for kegs is more expensive. He said their costs are up at least 20% from this time last year.

SweetWater has been operating as an Atlanta-based business for ten years. I asked Guender if this was the young company's first big cost challenge. "I think it may be the most dramatic," he said. "That's due mostly because of the perfect storm in term of price increases."

Guender said SweetWater tries to get creative and find ways to cut costs, but some of those costs are passed on. Despite that, beer sales are up 40% in Atlanta bars and restaurants. Other breweries, both big and small, across the nation are also reporting brisk business.

It seems beer is recession-proof.

"During good times and during bad times, people want to drink their beer," Guender said.

Kunze said it makes sense: "Versus making trips, if you can relax at home, that's how this is recession-proof."
Original Source: http://www.11alive.com/news/local/story.aspx?storyid=116340&catid=40#


 
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