As an expert sommelier and brewer, I can provide some insights into why Keystone is a cheap beer option. Keystone falls into the “value” segment of the beer market, which means it is positioned as an affordable option for consumers. This marketing strategy targets drinkers who are looking for a budget-friendly beer and are willing to spend less money on their beverage of choice.
One of the main reasons why Keystone is able to maintain its low price point is because the cost of producing beer itself is relatively inexpensive. The primary ingredients for beer production are water, malted barley, hops, and yeast. These ingredients are generally affordable, especially when purchased in bulk by large breweries like Keystone's parent company, Coors Brewing Company.
Additionally, the brewing process for Keystone is likely streamlined and efficient, allowing for cost savings. Large breweries have economies of scale that enable them to produce beer at a lower cost per unit compared to smaller craft breweries. This efficiency in production helps keep the overall price of Keystone down.
Another factor contributing to the cheapness of Keystone is the distribution and retail markup. When you purchase beer at a store, a significant portion of the price you pay is made up of the retailer's markup, distributor fees, and taxes. These additional costs can vary depending on the location and the specific distribution chain. In the case of Keystone, being a mass-produced beer, it is likely distributed widely and through established channels, which can help minimize distribution costs.
It's also worth noting that the branding and packaging of Keystone may not be as elaborate or costly compared to other higher-priced beers. This can help keep the overall production and marketing expenses lower.
Personal experiences and situations may vary, but I can recall instances where I have encountered Keystone being offered at lower prices compared to other beer options at bars or restaurants. This further supports the idea that Keystone is positioned as an affordable choice for consumers who are looking for a budget-friendly beer.
To summarize, Keystone is cheap primarily because it falls into the “value” segment of the beer market, targeting consumers who prioritize affordability. The low cost of beer production, efficient brewing processes, distribution and retail markups, and potentially simpler branding and packaging all contribute to the low price point of Keystone.