So is $3.75 for a 355ml can the new norm in east Toronto?

[Blasphomet]

Hold on where in Ontario can you get 24 for $14.99 of anything?

Before tax?

After the 1970's.

[Belgian]

... My guess is LF is doing quite well and has a limited capacity, probably a bunch of debt, so price goes up... It makes business sense to produce lower volume and sell for a higher price, especially when you're operating in an urban environment.

Exactly, and there's nothing wrong with that. Enough people buy it at that volume and price, great that means they can keep amortizing their investment or sustaining net revenue in a stable way. Not having to scale up production may even keep the quality under rein.

And the rub, as some have mentioned is that we run into a point of diminishing returns - just as with home sale prices, we can't count on an annual steep increase of valuations, irrespective of household incomes & what people will balk at. There's a certain 're-educating' or tolerance of pricing inflation with the growing appreciation of artisan products (I think $15.35 for the GLB 30th anniversary is a fair deal, Nickel Brook Kentucky Bastard too) but people do reach a point of sales resistance (I don't necessarily try each new fancy beer over a certain price unless I'm really sure about it.)

[beerstodiscover]

Hold on where in Ontario can you get 24 for $14.99 of anything?

This is a bit off the narrow topic here but I was referring to the US, where you can get a case for $14.99 or less and where buying "cheap craft" is about double the price of cheap macro. Ontario has a much higher price floor on all beer. Thus, making a similar jump from macro to craft in Ontario only costs you about 25% more at the register (I'm not talking about special releases). Strangely the perverted high-price environment in Ontario actually helps the value proposition of craft producers, while also funneling truckloads of profit to the macro brewers.

And taxes. Comparing beer prices to the US is apples and oranges.

Anyone feel free to correct me, but from what I gather, a non-draft Ontario micro brew sold at the LCBO would be taxed 95.53¢ per litre. Taxes are higher for large brewers. While taxes in various US states range from 11¢-68¢ per gallon.

This partly explains why we can't get cases of Labatt 50 for $15, but it's interesting that the beer taxes are much higher here, yet premium craft is much more expensive in the US. Something like Bellwoods BOYD at $14, from a US equivalent would be 40%-100% more. The answer is simple, more demand. As the market grows here, prices will rise as well, and it won't be because of taxes.

[Belgian]

As the market grows here, prices (for craft beer) will rise as well, and it won't be because of taxes.

And what of competition? If certain people balk at jacked prices for craft, will other craft brewers not want to scoop those sales?

I'm wondering if breweries like Founders and Stone, good as they be, are successful largely because they have a keen sense of what to sell where for how much in order to see a consistent yield. They are pricing champs. I think Great Lakes (Etobicoke) seem kind of smart that way, and the quality is getting very respectable (Etobichoker Double Belgian IPA blew me away last week at Thirsty & Miserable, I had three of those.)

[Bobsy]

For those willing to venture a little further out, Scarborough's Common Good sells 500ml cans for around $2.50, and I find the quality to be quite decent. I believe their double IPA clocks in at around $2.95, and growler fills are ridiculously cheap.

I expect rent is a huge factor for some of these places - we used to live near Cowell subway and our house went up 70% in 5 years.

Agreed. Their beer is absolutely decent and you can't go wrong with the price of their growler fills. Haven't been in a while, but I need to change that.

They have a promotion on for December where you can make your own six-pack for $13.50. I'm no mathematician, but I think that's $2.25 per 500ml can. Incredible value!

As for Leftfield, I'd certainly pick up their stuff when I'm back in the old hood because the quality has always been there. I just probably wouldn't buy as much.

[Belgian]

For those willing to venture a little further out, Scarborough's Common Good sells 500ml cans for around $2.50, and I find the quality to be quite decent. I believe their double IPA clocks in at around $2.95, and growler fills are ridiculously cheap.

I expect rent is a huge factor for some of these places - we used to live near Cowell subway and our house went up 70% in 5 years.

We're sorry to lose you in the East End Bobcat! But Common Good sounds worth checking out.

Yes rents are described as 'insane' in Toronto, big surprise given how 'reasonable' house prices are. So basically everybody's paying somebody else's high rent if they go out of the house to support someone's business. I was thinking that today as I spent about $35 on apples at The Big Carrot, there must be a place north of Toronto I could buy organic Ida Reds and Northern Spy for less that two bucks a pound.