Craft beer price drop unlikely
Local brewers not affected
IT SEEMS the froth and bubbles surrounding the prospect of cheaper craft beers after Federal Treasurer Scott Morrison’s pre-budget announcement have gone as flat as a hot beer in the sun.
Mr Morrison announced that all beer sold in kegs larger than eight litres would be taxed in the same way as kegs larger than 48 litres.
Prior to the announcement, brewers who used 30-litre kegs were taxed 40 per cent more than those who used 50-litre kegs.
At the time, the Treasurer said: “This not only champions the craft brewers that we’ve all grown to love, it raises a very tantalising prospect for Australians: the likelihood of cheaper craft beer.”
However, craft brewers on the Gold Coast and Tweed, while welcoming the change, said it won’t make any difference price wise.
Black Hops Brewing co-founder Michael Mcgovern said there were very few craft brewers who used 30-litre kegs and while the tax on them would be cheaper, it wouldn’t be practical or cost effective to change.
“We use predominantly 50-litre kegs and for us to stock up on 30-litre kegs wouldn’t be worthwhile,” he said.
“Our more popular brews are supplied to venues in 50-litre kegs and while there may be opportunities for us to put seasonal or special-release brews into the smaller kegs, the bottom line is that the tax relief won’t have significant impact on the cost price to craft beer drinkers.”
Tweed Heads’ Pickle Pig Brewery owner Paul Brewer said the Federal Government changes would have little to no effect on his operations.
“I have 120 of the 50-litre kegs so it doesn’t impact on my cost price for my beer,” he said. “I couldn’t afford to change over to the smaller kegs but it might be something to consider down the track.
“For smaller brewers like ourselves, we deliver our own beers to venues so it becomes a matter of logistics in terms of the number of kegs a place wants and on a practical level how many they can store on site.
“While the tax reduction is a positive move, I don’t think drinkers will see a drop in prices across the bar.”
Black Hops Brewing co-founder Michael Mcgovern said moves to cut tax on smaller kegs won't result in cheaper drinks.