Beer prices going up...

What, me worry? Courtesy Google

Social Security benefits are decreasing. 401(k) contribution limits are decreasing. Credit card companies are increasing their interest rates and fees. All of this news is enough to make a person want to just forget it all and go have a beer. But wait, now we find out that brewers are raising beer prices. What is going on?

It has been announced that the big beer companies – Miller, Anheuser-Busch, and Coors are all raising their prices at the same time. Kind of reminds me of the gas prices in this country. You know the routine, right before the summer holidays gasoline prices mysteriously go up. Football season is just starting, and for beer manufacturers that is a really big deal. Beer consumption typically rises during football season.

It seems that Miller and Coors have joined together in a joint venture operation with a very clever name – they call it MillerCoors, and they probably paid some marketing firm millions to come up with it. So now they are best buddies whereas in the past they were arch enemies.

Together,InBev and MillerCoors control 80% of the US beer market. The two companies have announced they will be raising prices. Why? Because like the gas companies, and the credit card companies – they can.

So, what can you as an investor do about this dire situation? Well, if you want to take advantage of it, you can buy the stock of both InBev and MillerCoors. After you buy the stocks, then you can help the price rise by buying the beer and drinking it. Heck, you can even buy the stock of ExxonMobil and then buy a gas guzzler, drive it to the store and buy your beer with a credit card company that you own stock in.

Of course, on the other hand, you can choose not to drink Coors, Miller, or Bud. Just like the credit card companies who are raising their interest rates and late fees, you can choose to cut up the cards and pay off the balances.

Whatever you decide to do, it really does not matter to these huge conglomerates. They will continue in business and raise their prices in the face of record unemployment and recession. You, as an investor should do your research and purchase stocks of companies that you feel have America’s best interest at heart.