Australia now has the third highest beer tax in the world, after Norway and Finland.

Independent Brewers Association

According to Lethbridge, independent breweries are being pushed out of their locations by the big breweries.

“We’re also now competing with supermarket draught beer,” she said. “You’re seeing some of the Dan Murphy brands going to draught and these private labels that are on the shelves at a much lower price than ours.”

Now that the ACCC has indicated that there is definitely a problem with Australia’s beer regulatory framework, the IBA plans to make a formal request to the consumer watchdog asking for an investigation.

In March, the House of Representatives economics committee concluded that Lion and CUB could exert “enormous market power” in Australia.

Moore, co-founder of Phat Brew Club, said brewers are also hurting by the cost of living crisis and reductions in discretionary spending.

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“People are still going out, but they are spending a lot less than they normally would,” he said.

Like many craft brewers, Phat Brew was founded out of a love of beer, rather than profit. It was founded by fellow football club members who persuaded friends and family to donate their savings and even their house deposits to help launch the brewery and an accompanying venue.

There are around 700 craft breweries in Australia and the industry has grown by more than 80 percent in the past eight years. The market is now worth $160 million, contributes $1.93 billion to the economy and directly employs about 10,000 people.

According to the IBA, Australia now has the third highest beer tax in the world, after Norway and Finland. Alcohol excise duty ranges from 14-37 percent of beer prices.

Mr Moore said the industry needed relief from ongoing excise duty increases.

“Just to give everyone a chance to catch their breath, to give the price of beer a chance to breathe and to help us through a tough time with the economy,” he said.

He said breweries received excise duty relief during COVID but then had to pay it back in full, “and that has also caused quite a few of them to go under”.

According to Lethbridge, there have been 25 to 30 breweries “that no longer exist” in the past 12 to 18 months.

The IBA was preparing to make its case at the federal election, expected next year. “We will take every opportunity to be heard,” she said.

MONKEY