WHY CRAFT BEER SALES ARE UNDER THE PUMP

THE insatiable thirst of global brewers to buy up independent Australian craft beer makers to seize some of the fastest-growing brands in the country will be probed by the competition regulator.

The Australian Competition and Consumer Commission on Wednesday announced it would seek submissions and views from the nation’s craft brewers as it investigated this month’s deal for Lion to acquire Fermentum.

Fermentum’s range of brews is led by Stone & Wood, which has around 1 per cent market share of the beer market. Fermentum cofounder Jamie Cook said annual sales were fast approaching $100m.

In the last few years

dozens of craft beer brands, once proudly independently owned, have been swallowed up by brewing giants such as Lion, owned by Japanese multinational Kirin, and Carlton & United Breweries, owned by rival Japanese multinational Asahi. In a letter to industry players, the ACCC says its investigation is focused on the impact on competition. “In particular, we are seeking your views on: whether Lion and Fermentum compete closely for the supply of beer, the likely impact of the proposed acquisition on the price or service levels for the supply of beer, and the availability of alternatives to customers and the ability of these alternatives to expand,” the letter said. The big brewers’ moves pose questions for Australian drinkers who turn to craft beer as they support small and independent players, but also raise the issue of the definition of a craft brewer. The buying up of fastgrowing craft beer brands by Lion and CUB comes as sales of the traditional beers that made them famous – such as Tooheys or VB – are flatlining.

The closing date for submissions to the ACCC is October 5.