The federal government and independent brewers are urging the consumer watchdog to investigate the “enormous market power” of Australia’s two largest beer products amid claims they are squeezing competition and pushing up prices.
“Australians are paying too much for a schooner. And we need to have a more competitive market,” he said. While the committee was unable to calculate the exact profit margins of the two big players, information from Asahi’s purchase of CUB in 2019 suggested CUB had a profit margin of about 40 per cent.
“It appears that the margins are very high. It appears that they’re far higher than the retail part of the same sector … this is certainly an area that warrants monitoring, at the very least,” he said. Tap real estate was vital for brewers, as it gave customers a chance to try a new brew before committing to buying a six-pack or case at a bottle shop, Neil said.