Anheuser-Busch to Raise Keg Prices 13% as Congestion Pricing Drives Up Costs in NYC
Big Apple beer lovers may have to shell out an extra 13% for a brew as congestion pricing in Manhattan’s busiest neighborhoods drives up costs for customers and businesses. Anheuser-Busch, the company behind Budweiser, Michelob Ultra, Stella Artois, and Corona, will be increasing keg prices by $5 across the board for customers in the NYC area.
Industry insiders predict that alcohol distributors will follow suit, passing on the $5 fee to customers. This will likely result in bars and restaurants raising their prices by an additional dollar per pint to offset the higher cost.
“It’s death by 1,000 cuts,” said one disgruntled beer drinker, who called the plan a “cash grab” by Albany. Others said the price hike may encourage them to switch to alternative beverages.
Bar owners are already feeling the pinch, with some reporting 45% increases in food costs since the pandemic. “This is going to be hard for me and I’m above 61st Street,” said Lee Seinfeld, owner of Dive Bar. “Midtown bars are really going to suffer.”
Bartenders, too, are affected. “Five dollars is too much,” said Eugene Wilson, owner of Pig N’ Whistle Public House. “Beer prices are already up there.”
A representative for Anheuser-Busch explained that the company will “build the cost of congestion pricing into delivery fees.” The news has left small business owners like Seinfeld and Wilson concerned about their ability to absorb the increased costs. “The cost gets passed onto them, and then they must make the difficult decision if they can eat it or must pass it on to their customers,” said Andrew Rigie, executive director of the New York City Hospitality Alliance.