AUSSIE FAVOURITES BUBBLE TO THE TOP
James Squire gains ground on Great Northern as beer price hikes bite
Great Northern Super Crisp Lager has again topped Australia’s list of top-selling beers but craft beer James Squire 150 Lashes is rapidly gaining ground.
The beer that markets itself as a beer for the outdoors has a stranglehold on the Australian market, as drinkers opt for lighter tasting and lower alcohol options.
Queenslanders’ favourite XXXX Gold is second on the list of top selling beers, while heavily marketed Carlton Dry comes in third.
James Squire 150 Lashes was the surprise packet on News Corp’s annual list of top-selling beers, becoming the second fastest growing beer, according to market research company Circana.
But Australians are paying more for beer, even though they are drinking less, as more money is poured into federal government excise taxes.
New figures have revealed that beer consumption has dropped almost 4 per cent, but drinkers spent almost 2 per cent more on beer in 2023.
Editor of beer bible Brews News, Matt Kirkegaard, said some drinkers were being priced out of the beer market.
“Beer used to be a drink for every person’s budget, wine was expensive and exotic and spirits were something you would buy in a bottle and drink rarely,” he said.
“But beer has become expensive because of the excise taxes and beer inputs like barley and hops have gone up double digits, in some cases 20 per cent.”
Beer excise makes up more than $25 of each slab of beer sold, and up to $4 for every full-strength pint.
“A round of two beers costs as much as a smashed avo,” Mr Kirkegaard said.
He added habits had also changed, with people going out for breakfast more often, replacing expensive pub sessions. Smaller brewers were battling to stay afloat this year as interest rate rises hit spending.
Renters, who are often young people, have been hit harder as vacancies reached record lows, driving weekly rents up.
Craft brewers were also battling home-brand supermarket knock-offs, which looked like they were made in boutique breweries, Mr Kirkegaard added.
The market research from Circana revealed a shift in demographics for beer drinkers.
The most likely people to crack open a can were 40 and above, with industry sources saying younger people were drifting towards pre-mixed Vodka Cruisers and spirits with sugar-free sodas.
“The majority of shoppers for beer are mainly within the ages greater than 65, 50-64 and 40-49,” Circana said.
“The shoppers for beer are primarily within the retired couples, empty-nesters and mature singles life stages.” Australians are now drinking beer more often out of cans, with cheaper processes seeing an explosion in varieties of cans available. Alcohol-free beers continue to rise, even though it was from a low base, with Heaps Normal Quiet XPA topping the best selling list. “If you’re drinking a lemon, lime and bitters, it stands out, but with alcohol-free beer you don’t get the same questions,” Mr Kirkegaard said.