Australian craft brewers say Japanese giants, who own nine of our top 10 best-selling beers, have “stopped” them from reaching pub drinkers across the country.
Sydney brewer Philter, run from the trendy inner-west suburb of Marrickville, wants the Australian Competition and Consumer Commission (ACCC) to investigate and break up what it claims is a monopoly.
Independents say popular brands owned by Carlton & United Breweries (CUB) and Lion Nathan – both now in Japanese hands – dominate taprooms thanks to deals with pubs that exclude small brewers and limit choice.
Five of Australia’s best-selling beers are owned by Asahi (Great Northern, Carlton Dry, VB, Pure Blonde and Asahi), while four are owned by Kirin (XXXX, Corona, Toohey and Hahn).
As Asahi and Kirin are Japanese, most of the profits go overseas.
Small breweries such as Philter say the system of giant breweries buying up contracts for the majority of taps in a given pub is unfair
All these Australian beers have one thing in common: they are owned by Japanese companies.
The only Australian beer in the top 10 sales list is Adelaide-based Coopers.
Total annual beer sales in Australia are estimated at $22 billion, but only 7% is spent at independent breweries.
Mick Neil, co-founder of Sydney’s Philter Brewery, said local breweries’ share of sales must increase if they are to survive.
Although the number of breweries has increased in recent years, many are struggling with unsustainable costs that have increased significantly since Covid.
“Independent breweries employ 50 per cent of all workers in the beer industry, but make only 7 per cent of their sales,” Mr Neil told Daily Mail Australia.
He says independents such as Philter do not get a fairer share of pub sales and wants drinkers to realize where the money is going.
“If you want to support your local community and brewing jobs and keep dollars in your area, buy a locally made beer,” Mr Neil said.
“We’re trying to have a chance. We employ 30 people in the area, all living within walking distance of the brewery.
He believes the decades-old system of giant breweries buying contracts for the majority of taps in any given pub is unfair and must be abandoned to promote Australian products and keep profits onshore.
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“For decades these guys have entered into long-term exclusive contracts with pubs, preventing independent beer from having a fair chance,” Mr Neil said.
Philter says these tactics “would be considered anti-competitive and the government would eliminate them through appropriate legislation.”
The Brewers Association of Australia, which represents CUB, Lion Nathan and Coopers, told Daily Mail Australia there were more breweries than ever in Australia.
“Craft beer has grown considerably over the past 15 years. It’s a good thing for Australian beer and for beer drinkers,” said BAA CEO John Preston.
“The share of independent beer in draft beer has increased 7-fold over the last 15 years.”
Mr Neil said growth was coming from sales in bottle shops rather than pubs, which are key as that is where drinkers can decide what to buy by the bottle.
He says drinkers lose out when they have to buy four or six packs of beer, or cases, instead of trying a schooner of a new beer in a pub.
“It’s easier and cheaper to try a new beer at $9 or $10 a schooner instead of having to buy a six-pack or higher quantity for a lot more money.”
A spokesperson for Lion Nathan told Daily Mail Australia it only does what drinkers want.
“Citizens have a mission to give their customers what they want,” a spokeswoman said.
“In pubs where craft beer is popular, you’ll usually find our beers alongside a range of independent brands. »
Philter employs 30 people, all of whom live within walking distance of its Marrickville brewery.
Mick Neil (pictured left, with his Philter co-founder Stef Constantoulas) says many small brewers are struggling with unsustainable costs which have risen significantly since Covid.
But Mr Neil doubts pubs can offer real choice to drinkers with traditional tap contracts in place.
“Maybe even without asking the consumer if they want something different. I would say they are assuming rather than asking.
An Asahi spokesperson said publicans offer independent craft beers on tap “in the overwhelming majority of our customers’ venues”.
“You only need to visit a local bottle shop or pub to see how much Australian beer culture has changed.”
The ACCC responded to queries from the Daily Mail by saying it encourages all brewers concerned about potentially anti-competitive behavior to “report it”.
