Thursday, February 19, 2009
Beer No Longer Recession-Proof
Over at my favorite political blog FiveThirtyEight.com, Nate Silver (of PECOTA and election predicting fame) brings us the startling news that even beer is being affected by the recession. The long held belief beer is a recession-proof good seems to faulter during the last quarter of 2008, and by a significant amount. There are a few theories, one of which Nate says is the rise of the micro and craft brews, which could be true since they are more costly, higher in alcohol content, and thus a person would buy less beer comparatively to say Bud, Miller, or Coors. He also gives a few more explanations, but I don't want to just repeat what he's saying, give it a read.
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1 comment:
I am shocked. You would think that in a recession, people will tend to drink more, especially in the confinements of their living quarters and not deal with the expensive bar scene. And beer is a perfect drink that does not cost as much as wines and spirits I feel. So shocked that sales are down. Yes commodities like hops are more sparse and that is reflected in the prices but still sales shouldn't be down that much.
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