Hotels Association defends price increases which have seen cost of schooners and pints rise at twice the rate of inflation
PUB customers are crying in their beer, with the cost of schooners and pints rising at twice the inflation rate in the past decade.
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PUB customers are crying in their beer, with the cost of schooners and pints rising at twice the inflation rate in the past decade.
In 2007, a schooner of popular West End Draught cost $3.95 — but last month the recommended price was increased to $6.35.
This represents an increase of more than 60 per cent in the past decade, based on the Australian Hotels Association SA recommended price guide.
If beer prices increased at the same rate as inflation over the 10-year period — 26 per cent — a schooner would cost only $5.
Pint prices have also jumped way beyond the inflation rate, with a 425ml glass of Pure Blonde now costing $10.50 compared to $6.45 a decade ago — a 63 per cent increase.
But it is not just some low-carb brews that cost more than $10 for a pint, according to the latest recommend Australian Hotel Association prices increases.
Trendy Italian brand beer Peroni Nastro Azzurro has a recommended pint price averaging $14.55 — even though it is brewed under license in Melbourne by Carlton & United Breweries.
Australian Hotels Association SA general manager Ian Horne defended the above-inflation price hikes and said hotels were not increasing their profits as a result.
He said last month’s increase in recommended prices was in response to the twice-a-year rise in the federal excise, which based on the inflation rate was 1.3 per cent.
“The AHA puts out a price guide which includes margins to cover costs,” he said.
“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.”
Mr Horne said the prices pubs charged had to cover other rising costs.
“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,’’ he argued.
“There are also increasing costs of employment, superannuation contributions.’’
The Australian Hotels Association said annual electricity and water costs alone had increased 50 per cent for a typical mid-sized suburban hotel from $97,000 in 2013 to $146,400 last year.
To cover the increases in utilities costs, the Australian Hotels Association estimates such a pub would have to sell an extra 3400 schooners a year.
In further bad news for pubgoers, the Australian Hotels Association will later this month release recommended increases in spirit prices per glass in response to the latest federal excise rise.