Australian craft brewers have made a request to the World Trade Organisation to take action against countries that provide subsidies to microbreweries.
Peak body representing Australian craft brewers, the Australian Real Craft Brewers Association say that Australian brewers are at a significant disadvantage when compared to brands that are imported. The association says that a number of Australian brewers have lost taps in hotels, and retail space in favour of subsidised craft beers such as California’s Sierra Nevada, ABC News reports.
David Hollyoak, chairman of the industry group, says that independent Australian brewers are finding it increasingly harder to compete.
"Australia is in a very unfair position because in 22 out of the 33 Organisation for Economic Cooperation and Development [OECD] countries are providing substantial reduced tax rates for their small brewers, and under the general agreement of trade and tariffs that is deemed a government subsidy," Hollyoak told ABC News.
The Australian Competition and Consumer Commission (ACCC) launched a separate investigation that seeks to determine whether major brewers are engaging in anti-competitive behaviour within the country’s pub industry including attempts to lock out competing brands. The watchdog is also questioning the validity of ‘craft beer’ claims made by the major brewers.
In January this year, consumer watchdog Choice together with the Australian Real Craft Beer Association said that major brewers are controlling hotel taps through their ability to offer attractive contracts inclusive of kickbacks such as rebates or installation and maintenance of lines and taps by the brewery, leaving smaller breweries unable to compete.
Hollyoak told ABC News that the association sees such practices as a restraint of trade, adding that it is illegal to have one tap contracted in the United States.
The popularity of craft and boutique beer has experienced impressive growth over the last few years with brewing giant, SABMiller noting that it had reported a decline in sales of its top mainstream brands including Crown Lager, Carlton Draught and Victoria Bitter.
The company also noted that popular tap beers including Carlton Draught, were losing traction as pub drinkers favoured craft beers over mainstream brands.