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Australia now has the world’s third-highest beer tax after Norway and Finland.
Independent Brewers Association
Lethbridge said independents were being pushed out of venues by the major brewers.
“We’re now having to compete with supermarket beer on tap as well,” she said. “You’re seeing some of Dan Murphy’s brands go to keg and these home brands who are on the shelf at a much lower price point than ours.”
With the ACCC, saying there’s definitely an issue with the regulatory framework for beer in Australia, the IBA plans to make a formal submission to the consumer watchdog requesting an investigation.
In March, the House of Representatives’ economics committee found Lion and CUB were able to exercise “enormous market power” in Australia.
Moore, who is a co-founder of Phat Brew Club, said brewers were also being impacted by the cost-of-living crisis and reduction in discretionary spending.
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“People are still going out but spending a lot less than what they traditionally would,” he said.
Like many craft brewers, Phat Brew evolved from a love of beer, rather than profits. It was formed by football club mates who persuaded friends and families to contributing their life savings, and even house deposits, to help launch the brewery and an associated venue.
There are around 700 craft breweries in Australia and the industry has grown more than 80 per cent in the past eight years. The market is now worth $160 million, contributes $1.93 billion to the economy and directly employs about 10,000 people.
Craft brewers are feeling the pinch because of the cost-of-living crisis and reduced discretionary spending.Credit: iStock
The IBA says Australia now has the world’s third-highest beer tax after Norway and Finland. Alcohol excise tax ranges from 14-37 per cent of beer prices.
Mr Moore said the industry needed respite from the relentless excise rises.
“Just to give everyone a chance to breathe, to give the price of beer a chance to breathe and allow us to get through a tough time with the economy,” he said.
He said breweries were given excise relief during COVID but then were asked to pay them back in full, “and that’s caused quite a few of them to go down as well”.
In the past 12 to 18 months, there were 25-30 breweries “that no longer exist”, Lethbridge said.
The IBA was preparing to advocate its cause at the federal election, expected next year “and we’ll take every advantage we can for the chance to be heard”, she said.
AAP