August Schell Copes With The Rising Cost Of Hops
From KEYC TV in Mankato:
Costs to operate just about anything go up over time and that’s the case in New Ulm, where Schell Brewery is facing more expensive costs on their ingredients. News 12’s Max Jensen found out what the brewery is doing to offset the high costs. For a brewery that has been open for close to 150 years, rising prices are nothing new. But when it comes to the main ingredient, one change in supply can have a big effect on the cost of a cold one.You have to eat the price increases and try to pass on what you can what you reasonably can and go from there. The price of Hops has shot up because of a recent shortage. With many producers fresh out, some breweries looking to other breweries for their supplies paying a lot more money in the process. Going forward you’re looking at higher prices because of those pressures and although recent rises in prices made the costs of ingredients go up, Schell Brewery says they will make money saving cuts in other areas to keep production strong. Look at ways of saving energy, look at ways at improving efficiently, reduce your internal loses and wastes, just become more efficient. While every industry tries to become more efficient in their ways of work, Schell Brewery isn’t going to compromise their product. We’ve never sacrificed the quality of the product I don’t believe in that. Making that beer that everybody knows and is used too, will become harder but it won’t get to the point where the brewery has to close its doors. We’re all stable companies, nobody is going to lock their doors over this. It’s going to get tougher, obviously. Whether it works itself out or we continue to see prices rise, Schell Brewery says they’ll be all right and continue to brew the products they’ve become famous for.
Check out KEYC.com for a video of this story.
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