Beer excise tax killing off Aussie craft breweries

[dkril]

I've always said all alcohol should be taxed exactly the same per litre of ethanol, regardless of ingredients or methods used to create the finished product.

 

[Dave70]

Australia has the third highest beer tax in the world.

But according to most respondents on this thread high beer tax has nothing to do with craft breweries going bust. It's the wacky beers, piss poor management, rising energy costs, economies of scale of the big brewers, a market correction, etc., etc.

Why is there no push back against high beer tax? The standard you walk past and ignore is the standard you accept.

Beer needs to be taxed at the same low rate as wine.

There is. This forum is literally populated with people who produce their own beer.

See those French farmers blocking highways and hurling **** and rotting produce at government buildings?
That's how you get your message across.

That will never happen here because we're to preoccupied protesting social non issues and staging referendums to stand up to actual government instigated injustice and unfairness that costing livelihoods.

As I said earlier, Furthermore, if you haven't got any political clout from the ground up or top down, you're goose is pretty much cooked. They will have their way with you.

And yes, by all means express your artistic flair in the brewhouse, but you better have a solid range of affordable and popular bread and butter beers to fall back on when that expensive to produce Pliney the Elder inspired DIPA failed to achieve escape velocity or cult status and its $13 per can price tag mean you're struck with a whole lot of expensive grog fast approaching it 'best before' date.

Wine is still flying off the shelves. What are there, half a dozen or so major styles?
Even I could pick one, and I know FA about the stuff.
Beer? Even if you know a thing or two its basically choice paralysis of expensive technicolour.

The tax is on beer ********.
But at the end of the day, running a high stakes business that depends on a fickle public will always be a tough gig.

 

[lost at sea]

now cost of living has sky rocketed, watch the home brew scene take off again after the craft beer boom....

 

[Dave70]

And with folks abandoning Zuckerberg's meta platforms in droves, its sure spark a new resurgence in forums!
Ahh..if only they'd hung on just that little bit longer..

 

[Feldon]

now cost of living has sky rocketed, watch the home brew scene take off again after the craft beer boom....

Maybe an underworld homebrew resurgence is already underway? Is the sharp rise in the number of stolen kegs a signal that hundreds of thieving newbies have taken up homebrewing?

Melbourne's Multitude Of Missing Kegs
Will Ziebell, The Crafty Pint, 6 Feb 2024

...the number of kegs to have gone missing in Melbourne over the last four or five months could be in the thousands.

Melbourne's Multitude Of Missing Kegs

Or maybe a lot of long-term homebrewers have suddenly got sick of bottling and moved on to kegs. If so watch out for reports of thousands of discarded (and previously stolen) milk crates blowing down city streets like tumbleweeds.

 

[eldertaco]

Melbourne's Multitude Of Missing Kegs
Will Ziebell, The Crafty Pint, 6 Feb 2024

That's pretty ****. The fact that it's seemingly not happening in other states makes me wonder if it's mainly the work of one group. Turning up with a truck and making off with 60 kegs is certainly pretty organised. Definitely some dodgy **** happens with scrappers.

 

[blacktop™]

That's pretty ****. The fact that it's seemingly not happening in other states makes me wonder if it's mainly the work of one group. Turning up with a truck and making off with 60 kegs is certainly pretty organised. Definitely some dodgy **** happens with scrappers.

I definitely think it’s organised.

Surely scrapping stainless steel isn’t that valuable?

 

[eldertaco]

Yeah apparently they're only worth around $20 bucks each as scrap. Makes you wonder if they're being shipped overseas and sold as kegs rather than scrapped.

 

[Sidney Harbour-Bridge]

Just got a text from a friend saying Red Bluff brewery is for sale looks quite reasonable, they make some regular beers and some craft ones, nothing to wild that I have tried there. https://www.commercialrealestate.com.au/business-for-sale/local-craft-brewery-2018570340

Then I found the actual site for sale, which is what I would have expected for a brewery proper, https://www.realcommercial.com.au/for-sale/property-11-old-bunga-road-lake-bunga-vic-3909-504456696?sourcePage=rca:for+sale:srp-map-hybrid&sourceElement=map-tile

Then I started looking around and found that Anvil is up for sale too, https://www.realcommercial.com.au/for-sale/property-anvil-brewing-co-13-15-high-street-mansfield-vic-3722-504485228?sourcePage=rca:for+sale:srp-map-hybrid&sourceElement=map-tile

And Bullant https://www.realcommercial.com.au/f...or+sale:srp-map-hybrid&sourceElement=map-tile

I wonder if this is a symptom of the squeeze breweries are facing now?

 

[Feldon]

Just got a text from a friend saying Red Bluff brewery is for sale looks quite reasonable, they make some regular beers and some craft ones, nothing to wild that I have tried there. https://www.commercialrealestate.com.au/business-for-sale/local-craft-brewery-2018570340

Then I found the actual site for sale, which is what I would have expected for a brewery proper, https://www.realcommercial.com.au/for-sale/property-11-old-bunga-road-lake-bunga-vic-3909-504456696?sourcePage=rca:for+sale:srp-map-hybrid&sourceElement=map-tile

Then I started looking around and found that Anvil is up for sale too, https://www.realcommercial.com.au/for-sale/property-anvil-brewing-co-13-15-high-street-mansfield-vic-3722-504485228?sourcePage=rca:for+sale:srp-map-hybrid&sourceElement=map-tile

And Bullant https://www.realcommercial.com.au/for-sale/property-bullant-brewery-46-main-street-bruthen-vic-3885-503790214?sourcePage=rca:for+sale:srp-map-hybrid&sourceElement=map-tile

I wonder if this is a symptom of the squeeze breweries are facing now?

Bulk buy anyone?

 

[Feldon]

going, going, g......

Much-loved Aussie beer brand Hawkers enters administration after 10 years
Nathan Schmidt, News.com, 12 Feb 2024

An Australian beer company has entered into voluntary administration after almost 10 years.

A popular Australian beer company has entered voluntary administration after almost 10 years of business, citing increasing costs and taxes.

Hawkers Beer, which is based out of Reservoir in Melbourne, announced on Monday it had entered into voluntary administration.

Founder Mazen Hajjar cited a range of challenges affecting not just Hawkers but the entire craft beer brewing business in a statement...
-
“Post-Covid has been a challenging period with bigger players increasingly restricting access to taps and shelf space,” he said.

“That is combined with broader economic pressures, including increased input costs and taxes."

https://www.news.com.au/finance/bus...s/news-story/b2a0f5190600f215676eb80cae979da1

 

[lost at sea]

none of them seem to mention a flooded craft market. a population of 27mil cant maintain 600+ micro breweries. was never going to last forever

 

[Dave70]

It may be a point of national shame, but Great Northern Crisp Lager has been the Toyota Hilux of beers in Australia for a few years running.
3.5% ABV .Makes a point of pointing out its 'low bitterness'. Its printed right on the box. A box that costs 60 bucks for 30 x 375 ml tubes of beer.
Clearly not everybody wants to get gazeboed in a session of expensive, wine strength beer.

I know it's easy to poo-poo the likes of CUB. But they're giving punters what they want.

 

[GalBrew]

I'm going to throw out what may be an unpopular option re: beer excise.

Anyone who has opened a brewery has done so knowing full well what the situation is regarding beer excise in this country. Don't go and open a brewery and then complain about it, you knew what you were getting into.

While we are at it, don't blame the two mega breweries for your financial woes. They have been here since long before your grandad was a twinkle in the milkman's eye. Again, don't go and open a brewery and then complain about the big breweries and their 'market power' and tap contracts, this is capitalism. You knew what you were getting into. Finally, don't complain about the big two off premise retailers and their 'market power', they were here first.......you knew what you were getting into.

 

[Gollywog]

Do complain. Do give a crap. Its the only way things will change.

Also, this is probably just to avoid paying the tax excise like the other brewery did. Hawkers isnt going anywhere. Its just a tax savings strategy.

 

[shmick]

Toyota Hilux

Hilux, Camry, MG

 

[philrob]

I have absolutely no idea why Great Northern has become so popular, but at my current and previous golf club it is the most popular beer, I take my hat off to their marketing department. Amazing how they managed to promote a beer without body, without flavour, without taste, and without any hint of hops, to the extent they have.
As for MG, wouldn't touch it even if it was offered free. Had a holiday in Tasmania recently and when I got to the rental counter I asked what car they had reserved for me. MG they said. I'm not driving that I said. What else do you have? Well, we can upgrade you into an Audi. That'll do I said. Lovely, driving in the style we do at home.
As for the sad demise of craft breweries, I tend to agree with the reasons generally expressed in this thread. Covid, cost of living issues, excessive tax compared to many other countries, over supply, and lack of outlets, and wholesale prices dictated to you by the large chains are all features of what's happening. If you don't have at least a bar with an attached food outlet, you'll struggle.
And so many of the beers now show little to distinguish them from each other. For example, almost every IPA I try these days is much the same to my taste. Not really enough bittering, and over hop flavoured with flowery juicy fruity hops. I still prefer beer, not hop juice.

 

[MHB]

I think it’s a completely BS argument. Have a look at the excise tables for 01/02/2024.

Scroll down to the Beer in a keg for pub serve, Excise has gone up by less than $1/L.
That’s calculated on the L of alcohol in the keg. Say a 50L (48L of beer) at 5% ABV; we are talking about 2.5L of alcohol. The tax could have only gone up by about $2.50. That’s over a typically 118 Schooners (yes NSW) so less than 2cents/schooner, sweet FA.

If your business model is so bad that that 2c/serve is going to send you broke, get a better model, accountant, industry you’re in the wrong one!
Mark

 

[wide eyed and legless]

Not just craft brewers, 50% of businesses will fail within three years irrespective of the nature of the business. I believe we as home brewers notice the craft brewery failures. And in general, these are ordinary folk being led by their heart, not their mind.
Hobbies can turn into exceptional businesses, but they are few and far between.
Maybe Barnaby was trying to help some small craft brewery in Canberra when he became as tired as a newt.

 

[Dave70]

The beetroots' probably necked enough piss to keep half a dozen micros out of receivership.
At least Joyce only humiliated himself publicly this time and not his long suffering wife and kids.
Semi comatose and mumbling obscenities in the street, or ******* around with the help. What quality public servants we have here..

Grubby old perv.
Still say he was punching well above his weight tho..