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Lion, the renowned brewer behind popular labels such as XXXX Gold, Hahn, James Boags, and Little Creatures, has announced a challenging decision to hike prices on some of its draught beers. The company attributes this move to rising costs within Australia’s struggling hospitality sector.
The brewing company highlighted a notable increase in expenses, citing higher costs for materials, wages, warehousing, and distribution as significant factors.
“Lion remains committed to finding a balance between offering competitive prices and recouping some of the costs that have been transferred to us by our suppliers amidst persistent high inflation,” stated a company spokesperson.
In a similar vein, Asahi, the parent company of beloved Australian brands such as Victoria Bitter (VB), Carlton, Pure Blonde, Crown, and Great Northern, has also raised its tap beer prices.
The cost of a keg of VB has risen to $415.10, marking an increase of $13.90.
This amounts to about 40c per schooner.
Pub owners say this price hike is going to hit customers at the bar.
Phil Anderson owns and operates The MiTCH in Alexandria, in Sydney’s inner-south, and said margins for pubs are already “very, very thin”.
He warned the price of schooner could near the $14 mark as venues desperately try claw back profits, with many owners having “no choice” but to raise the cost at the cash register.
“Any increase to the price has to be passed onto the customer straight away,” Anderson said.
In response to the price hikes, the Australian Hotels Association (AHA) has recommended that operators charge $9.50 for a schooner of VB, XXXX Gold and Carlton Draught.
Before the price increases, the AHA recommended $9.10 for the same brands.
But Anderson said this still leaves little room to make any profit.
“People don’t understand that it’s not just the pub trying to make money,” he said.
“It is these multinational groups.”
He’d love to stock more independent Australian brands, but Anderson said a good pub can’t avoid having beers like VB on tap.
“People love to buy them,” he said of the Asahi and Lion duopoly’s popular draughts.
It has been a short-lived relief.
“Every six months there is a price increase anyway,” Anderson added.
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