Beer is recession-proof, or so the conventional wisdom goes. People will cut down on a lot of things, but not their beer. Heck, without beer what would you have to cry into?
Dennis Wehrmann of Franconia Brewing Company is certainly banking on this. He was profiled in a recent issue of The Dallas Morning News.
Franconia owner banks on beer budgets
Beer consumption can be resistant to the ups and downs in an economy, a crucial advantage for his Franconia Brewing Co., which opened in February.
“There are certain things in life people don’t want to cut back,” he said. “You can’t take all the fun out of life. When you have to spend vacations at home, you at least want to drink some good beer.”
As Mr. Wehrmann began filling his kegs, prices for ingredients soared. Bulk grain shot to 45 cents a pound from 19 cents in October. A pound of hops jumped from around $12 to $58 in the same period.
He had to quickly alter his business plan to cut costs, including scuttling a tasting room. Still, he said, he’s pleased with the response to his brews, an orange-golden lager and a citrusy ale, now on tap at about a dozen North Texas restaurants and bars.
In case you hadn’t noticed, the American economy is in a world of hurt. Ford just announced a huge quarterly loss and thousands of job cuts. GM and Chrysler are expected to do the same.