It’s the Water

Breweries will sometimes tout their water quality but it appears that Foster’s Lager really likes the H2O, read HERE.

Now adding water is not inherently bad. Bourbon and other spirits have calculations to make to reach certain proof points.

But what I will call the Foster’s Two-Step of lowering ABV while also raising prices is pushing it. It may not seem a shock that they are doing it but the reasoning behind is a bit more complicated than corporations are greedy bastards.

Companies will raise prices for two big reasons. One is cost to make the beer. If it is rising, as it has been, they will cover costs which is only natural. The un-natural bit is that many companies see those rising costs or inflation or a bad mood on a Tuesday as cover to raise prices.

As long as a PR VP can lay the blame elsewhere, a company can add a nickel or dime to the price which gives cover to others to do the same.

Now, if companies paid fairly this would be moot. If Foster’s had a quality or taste profile that makes watering down integral, this would be moot.

In the end, what Foster’s and others will find is that they are antagonizing customers while also putting their prices closer to those of craft beer. And that is not the two-step they want.