Taste drives beer market
TASTEBUDS dictate what beers are on tap at the local pub rather than market clout, according to the competition watchdog.
Following a lengthy investigation into tap beers, the regulator says there is no evidence big brewers are wielding their power to keep craft beer makers at bay.
But the body representing independent brewers has criticised the finding, saying it does not reflect the reality in the marketplace. The Australian Competition and Consumer Commission yesterday said it had examined contracts and practices across 36 pubs, clubs and other licenced venues in NSW and Victoria.
It followed allegations from some craft brewers that the dominant beer makers in Australia, Carlton United Breweries and Kirin – respectively owned by Belgium’s Anheuser-Busch InBev and Japanese titan Lion – were restricting access to beer taps.
The commission noted the craft beer market was growing rapidly and said it would continue policing the tap beer sector, while independent brewers vowed to continue their battle.
According to industry statistics, the number of small independent brewers has doubled to about 400 nationally in the past four years.
The ACCC launched its investigation into the contracts between CUB, Lion and licensed venues after craft brewers complained many venues’ beer taps were off limits due to exclusivity agreements and volume requirements.
It had emerged major brewers were offering rebate schemes, infrastructure investment and refurbishment loans to venues who agreed to dedicate 80 per cent of beer taps to their brands.
But the ACCC yesterday said publicans had broadly raised few concerns.
“Although some venues had exclusivity arrangements, most pubs and clubs said they did not feel constrained from allocating taps to smaller brewers and could make taps available for craft beer if necessary,” deputy chairman Michael Schaper said.
“While some craft brewers may have been refused access to taps by certain venues, our investigation found the venues were responding to consumer demand for certain beer brands, rather than restrictions imposed by the big brewers.”
The Independent Brewers Association said the finding was a “body blow”.
It was “puzzling” that the investigation focused on the venue’s experience rather than that of small brewers, association chairman Ben Kooyman said. “To now find out that the status quo will be maintained is a bit hard to take,” he said.