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Coronavirus: Carlton & United Breweries, Lion warn of ‘up to three months’ of no beer

The nation’s largest brewers have warned Australia is likely to run out of beer in a few weeks if their breweries are not included as an essential service.

Carlton & United Breweries (CUB) CEO Peter Filipovic at their brewhouse in Abbotsford last year. Picture: Aaron Francis
Carlton & United Breweries (CUB) CEO Peter Filipovic at their brewhouse in Abbotsford last year. Picture: Aaron Francis

The nation’s largest brewers have warned Australia is likely to run out of beer in a few weeks if their breweries are not included as an essential service under the Victorian government’s proposal to lock down the state.

Thousands of jobs in the multi-billion-dollar brewing sector could also be lost.

Carlton & United Breweries said that in times of turmoil and crisis that Australians needed some “normality” in their lives, including a glass of cold beer.

The brewer, whose major brewery site is in Abbotsford, ­Mel­bourne, had ramped up prod­uction in the past few weeks expecting that its operations would be disrupted by the coronavirus pandemic.

But as sales ­volumes have rocketed in the past few days it is leaving the available stock dangerously low and in ­danger of depletion unless the government sanctions its operations as essential.

The brewery was supported in its call by the nation’s second-biggest brewer, Lion, on Sunday.

A CUB spokesman told The Australian that many parts of the country could run out of beer in weeks unless the breweries could continue to operate through any shutdown or lockdown.

“Carlton & United Breweries … is greatly concerned about no beer being available in Australia for at least three months if beer is not given exempt status, and what this would mean for tens of thousands of jobs,’’ the spokesman said.

“In these incredibly uncertain times people need some normality in their lives. They need to be able to access beer and other liquor at bottle shops.

“You can’t turn major breweries off and then quickly turn them back on. After reopening, there could be three months of no beer for pubs and bottle shops.

“The UK and other countries have kept retail and takeaway ­alcohol. We urge Australian governments to do the same.’’

The spokesman said any government decision to shut down ­liquor supplies would be “nonsensical”, especially as most beer and other alcoholic beverages were sold through the supermarket chains.

Lion mirrored CUB’s warning that beer could quickly disappear from the shelves if its breweries were shut down.

“Our breweries are 100 per cent able to operate under strict health and safety rules — we have been doing this for the past 10 days to support the government in the fight against COVID-19,” said Lion managing director James Brindley.

“You can’t turn off and then quickly turn back on major breweries like Tooheys. After reopening, there could be up to three months of no beer … because it takes that long to grow the quantity of yeast needed.

“The UK, EU and US have kept retail and takeaway liquor going, and the supply chains behind them.”

Leading liquor retailers such as Dan Murphy’s, owned by Woolworths, and Liquorland, owned by Coles, have already reported a strong spike in the sales of wines, beers and spirits in ­recent weeks as hordes of consumers panic-buy ­alcoholic beverages along with their trolleys of toilet paper, pasta,

Read related topics:Coronavirus
Eli Greenblat
Eli GreenblatSenior Business Reporter

Eli Greenblat has written for The Age, Sydney Morning Herald and Australian Financial Review covering a range of sectors across the economy and stockmarket. He has covered corporate rounds such as telecommunications, health, biotechnology, financial services, and property. He is currently The Australian's senior business reporter writing on retail and beverages.

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Original URL: https://www.theaustralian.com.au/business/companies/coronavirus-carlton-united-breweries-warns-it-could-run-out-of-beer/news-story/8987500bef0d098cdc2fae1673b9f7eb