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.“There appears to be evidence of high margins in the beer brewing sector which may indicate excessive market power. This would contribute to the high cost of beer for consumers,” the report said.
Mick Neil, co-founder of Philter Brewing in Sydney’s inner west, said when his company’s pale ales, IPAs and lagers first hit the market seven years ago, it was easier to secure taps in pubs across trendy inner-city venues in Melbourne, Sydney and Brisbane.Stef Constantoulas and Mick Neil started Philter seven years ago. Neil said competition has become much more difficult in recent years.“The availability of those taps has probably remained pretty consistent with what they were back then.
“The way most of the bigger independent beer brands have the opportunity to build their brand is giving people an easy opportunity to get liquid on lips, we call it,” he said.An Asahi spokesperson said the number of breweries in Australia had increased by several hundred over the past 15 years, a sign of a healthy industry.