SA craft brewer Shapeshifter welcomes beer excise move

A leading South Australian craft brewer says any move to slash the cost of pints at the pub is a welcome move as the industry battles the ‘perfect storm’ of economic pressures.

South Australian brewers are cautiously optimistic the crippling beer excise could be revised under a change in federal government.

National Leader David Littleproud will on Monday meet Australian Hotels Association members to discuss the beer excise making Australian pints some of the most taxed beers in the world.

Shapeshifter Brewing co-founder and chief operating officer Kevin Mulcahy said any downward pressure on the exorbitant excise would help make his business sustainable.

The Findon craft brewer is battling crippling cost increases across the board, from a 30 per cent increase for raw materials to power bills jumping from $2000 to $3600 a month.

“The emphasis needs to be very much on arresting this continual indexation of the excise – we can’t keep passing it on to the hotels and the like,” he said.

Shapeshifter Brewing Co co-founder and chief operating officer Kevin Mulcahy. Picture: Supplied

Mr Mulcahy said about $80 of each keg went to the excise, severely reducing any profit margin for the independent brewery if prices are not increased at the pub.

Beers at his taproom range from $12-$13 while pubs can charge about $13 to $15.

“We’ve had to reduce our prices,” he said.

“The margin is very, very slim. And It’s not just the excise, it’s a perfect storm for us from people tightening their belts at the moment amid the cost of living pressures.”

But federal Health Minister Mark Butler rubbished the Coalition’s cheap political shot for cheaper beer, saying the government was focused on “cheaper medicines, not cheaper beer”.

“There are some very important issues around the access to alcohol, particularly new delivery models that have been the focus of national cabinet consideration in the context of their very serious discussions around domestic violence,” he said.

“But I think that the National Party’s call for cheaper beer comes really in the wake of very standard excise increases that have operated under governments of all political persuasions for many years, every six months.”

The Australian Distillers Association hit out at the August 5 excise that increased spirit taxes to $103.89, saying “continued government inaction” was frustrating the industry that contributed $15.5 billion in added value to the Australian economy.

It called for a freeze on the spirits tax and for the creation of an export body for spirits, similar to the Australian wine industry.

Originally published as SA craft brewer Shapeshifter welcomes beer excise move