Consumer watchdog Choice says that foreign owned brewing giant, SAB Miller (which owns the Fosters Group inclusive of Carlton & United Breweries) is locking out genuine craft beer at local pubs.
Choice’s head of media, Tim Godfrey says that while pubs may appear to offer a wide selection of tap beers, the reality is that most of the taps in Australian pubs are controlled by one of two international brewing giants, Sab Miller or Kirin, at the expense of genuine Australian craft brewers.
“It's not uncommon for the big brewers to offer more money, rebates or other incentives for exclusive access to 80 percent or even 100 percent of pub taps, making it hard for independent brewers to get a fair go,” says Godfrey.
“We know 83 percent of revenue in Australia flows to the big beer barons, Kirin and SABMiller. If exclusive dealing cuts competitors, forecloses markets and keeps competitors out, it may well be unlawful.”
Choice obtained a contract for the supply of tap beer that stipulates demands for exclusive access for the SABMiller-owned Foster’s Group. Examples of the terms include:
- Foster's will be the exclusive supplier of all Light Strength (<3%ABV) Draught Beer;
- Foster's will be the exclusive supplier of all Low Carbohydrate Draught Beers;
- Foster's will be the exclusive supplier of all Domestic Premium and Sub-Premium Draught Beers;
- Foster's will be the exclusive supplier of all Imported Draught Beers;
- Foster's will be the exclusive supplier of all Specialty & Craft Draught Beers;
- Foster's will be the exclusive supplier of all Draught Spirits & Cider.
Choice say that the ACCC is currently investigating the wholesale supply of beer to Australia’s pub industry to determine whether anti-competitive behaviour is locking out smaller, genuine craft brands.
“This isn’t the only tactic the big brewers are using to muscle in on the growing craft beer market. For some time Kirin and SABMiller have been buying up craft beer brands and now currently control 47 percent of the craft beer market,” says Godfrey.
“These big global beer barons know there’s a price premium on claiming to be craft brews and it’s now clear their ‘craft washing’ strategy extends to exclusive dealing which sees genuine Australian craft beers locked out of the market.”
In April last year, US entrepreneurs, Barrett Garese and Rudy Jahchan have launched a 99 cent app that is designed to help beer lovers differentiate between genuine craft beer, and beer that is marketed as craft, but is in fact owned by big brewing companies.
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.