Beer rising at twice the price of inflation
The hotel industry has gone into defence mode following the public outcry about rises in the price of beer.
The recommended price for a schooner of popular West End Draught is now $6.35. Back in 2007, it cost just $3.95.
Based on the Australian Hotels Association SA recommended price guide, that’s up more than 60 per cent in the past decade.
It covers all beers. For example, Pure Blonde now costs $10.50 compared to $6.45 a decade ago, up 63 per cent over the last 10 years.
And it also applies to low carb beers which now cost more than $10 a pint.
One example is trendy Italian brand beer Peroni Nastro Azzurro. It has a recommended pint price averaging $14.55. That’s despite the fact that it’s brewed under license in Melbourne by Carlton & United Breweries.
Australian Hotels Association SA general manager Ian Horne defended the above-inflation price hikes.
The increases were to cover costs, he said, and the hotels were not increasing their profits as a result of the hikes.
He said last month’s increase followed the twice-a-year rise in the federal excise, which rose 1.3 per cent based on the inflation rate.
“Council rates have increased at twice the inflation rate, power price are up 150 per cent in some cases, rent rises are also greater than the inflation rate,’’ Mr Horne told the Adelaide Advertiser.
“There are also increasing costs of employment, superannuation contributions.’’
“Last month, the wholesale price of a keg of West End Draught paid by hoteliers went up 2.38 per cent and we recommended the price of a schooner of West End increase by the same amount.”
The AHA has also pointed to annual electricity and water costs alone increasing 50 per cent for a typical mid-sized suburban hotel from $97,000 in 2013 to $146,400 last year.
by Leon Gettler, March 13th 2017
