NEW YORK (CNN/Money) - Beer and gasoline often mix in retailing -- but industry observers say high gas prices could break up the pair.

Analysts caution that the post-Hurricane Katrina gas price volatility doesn't bode well for the beer industry on two counts.

First, the escalating price of gasoline is pressuring companies on the back end of their business by boosting their utility bills and hiking transportation costs.

Most beer companies don't directly distribute product to retail outlets, said UBS analyst Nik Modi. Instead, a bulk of the distribution is done by independent distribution companies.

But beer companies still get hit with the gas price inflation. Explained Modi, "Anheuser-Busch operates 13 facilities in the United States. They do run their own delivery fleet to transport goods from the plants to these distribution companies."

St. Louis-based Anheuser (Research) accounts for more than 50 percent of the domestic beer market, with leading brands such as Budweiser, Bud Light, Michelob, and Busch

The second problem is the deepening impact of higher gas prices on consumers' disposable incomes.

"On the sales volume side, gas is a bigger problem for Anheuser, which has a 60 percent share in the convenience store sector," Modi said. "Convenience stores typically attract lower income consumers, and these people are hardest hit by the increase in gas prices."

According to the National Association of Convenience Stores (NACS), beer sales in convenience stores totaled $15.7 billion in 2004. Beer sales last year accounted for 20 percent of all in-store sales dollars, ranking it forth in terms of in-store category sales for the industry after cigarettes, non-alcoholic beverages and food.

For convenience stores that also sell gas, beer ranked second among in-store purchases after cigarettes.

Nationwide, about 74 percent of convenience stores sold beer last year, making it a vital retail channel for overall beer sales.

"If 40 percent of all gas purchased is with cash, that leaves much less money in the pocket to buy other things, including beer," said Modi, who has a "sell" rating on Anheuser-Busch.

Separately, in a recent Smith Barney survey of beer wholesalers, 75 percent of those polled said they believed gas prices have impacted beer volumes.

"Wholesalers believe the working man's disposable income is under pressure from higher gas prices and that beer purchases are suffering as a result," the report said.

Further, wholesalers indicated that sales at convenience stores could be the most impacted because some consumers are no longer purchasing a case of beer along with their gas.

"Consumers may be less willing to make an impulse purchase of beer in the convenience and gas channels," the report said.

Anheuser-Busch did not immediately return calls for comment. Molson Coors cold not be reached for comment.