Tap beer prices set to rise as Lion and Asahi lift keg costs
As if beer prices weren’t higher enough, they are set to rise again.
Australian pub-goers are facing higher bar tabs after two of the country's largest brewers announced increases to their draught beer pricing, placing renewed pressure on hospitality operators already navigating thin margins.
Lion — the brewery behind XXXX Gold, Hahn, James Boag's and Little Creatures — has confirmed a price rise across select draught products, citing sustained cost inflation across the sector. "Despite a welcome pause in excise rises for tap beer, the brewing and hospitality industries have continued to experience cost inflation over the last couple of years, and market conditions remain difficult," a Lion spokesperson told nine.com.au. The company pointed to rising costs across materials, wages, warehousing and distribution as key drivers. "Lion is committed to striking the right balance between competitive pricing and recovering some of the costs passed onto us from our suppliers in a stubbornly high inflation environment," the spokesperson added.
Asahi — parent company of Victoria Bitter, Carlton, Pure Blonde, Crown and Great Northern — has moved in the same direction. A keg of VB now retails to venues at $415.10, reflecting a $13.90 increase that translates to roughly 40 cents more per schooner at the bar.
The Australian Hotels Association has responded by revising its recommended schooner price upward, from $9.10 to $9.50 for VB, XXXX Gold and Carlton Draught. However, operators say even the updated guidance leaves little room for viable margins.
Phil Anderson, who owns and operates The MiTCH in Alexandria in Sydney's inner south, told nine.com.au the situation is becoming increasingly untenable for venue owners. "Any increase to the price has to be passed onto the customer straight away," he said, warning that schooner prices could approach the $14 mark as publicans attempt to recover losses. He described current pub margins as "very, very thin" and said many owners have "no choice" but to lift prices at the register.
Anderson also pushed back on the perception that venue owners are the primary beneficiaries of rising prices. "People don't understand that it's not just the pub trying to make money," he said. "It is these multinational groups."
While Anderson expressed a preference for stocking more independent Australian brands, he acknowledged the commercial reality of the duopoly's pull. "People love to buy them," he told nine.com.au, referring to the popular draught lines controlled by Lion and Asahi.
The increases arrive despite a recent federal government move to ease cost-of-living pressures in the on-premise sector. The House of Representatives last month passed legislation temporarily freezing excise on draught beer — a measure welcomed by the industry, though Anderson suggested its impact has already been offset. "Every six months there is a price increase anyway," he said.
Jonathan Jackson, 5th March 2026
