I enjoy a good Dogfish Head 120 minute IPA, it is the only beer I can casually drink at home and it actually gives me a buzz, but I am curious as to why does it have such a high price point?
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1 Answer
I think there are three main reasons.
1) Direct production costs. Dogfish declares adding hops for two hours, and this has a cost you need to pay (more hops, more time)
2) Alcohol content. Taxes may depend on ABV (for minimum rate of excise duty on beer in the EU, see here). The higher is the ABV, the higher is the tax.
3) Marketing. The beer is a very special one, and it is easier for Dogfish to find consumers willing to pay more for such a special beer.
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2Agree with all of this, and a fourth reason would be the time it takes to brew (several months IIRC) tying up people and equipment.– Xander ♦Jan 9, 2019 at 14:13
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1You are right, I was going to edit my answer in order to expand point 1) to production costs (raw material + production time), but you arrived first. Jan 9, 2019 at 14:20
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1#2 seems to depend on jurisdiction, unless you mean that Dogfish has to pay higher taxes where they produce it. As for additions, please do edit to expand; we want the information to be in the post, not buried in comments. Thanks. Jan 10, 2019 at 2:07
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1It also has a higher rate of failure to brew (increasing cost). I watched a documentary (en.wikipedia.org/wiki/Brew_Masters) featuring the owner of Dogfish Head and sadly watched them dump a whole fermenting tank because something when wrong and recall them discussing the high rate of failure and that is why they have a hard time making enough to keep it as a regularly stocked beer (I can't recall the last time I saw it even in specialty stores). Jan 14, 2019 at 16:10