News

September 02, 2008

Russell Brewing, Canadian Craft Beer Maker, Set To Expand Despite Increases In Raw Materials

By Christian Gradley

Anyone who enjoys lifting a pint or two knows that the price of beer has been on the rise as of late. Much to the chagrin of pubgoers, the cost of a pint has risen by 15 per cent on average over the past year. And while police at a Manchester United football match may appreciate this increase, most beer-dispensing establishments are hurting. Why the rise? Oil, barley and hops prices have all increased dramatically.

After water, the main ingredients in beer are malt barley and hops – malt barley provides the sugar starches that are fermented into alcohol, while hops produce a brew’s flavour, be it bitter or floral.  Since last year, malt barley prices have risen by 50 per cent – a rise that is in part due to increased worldwide demand for grains.  Another major factor, though, is the recent fascination with ethanol, which has effectively persuaded farmers to plant corn instead of cereal...