Consumer advocacy group Choice has said that it has evidence of CUB demanding exclusivity to taps from pubs in return for cash bribes, limiting availability for distribution of smaller brewers.
Tom Godfrey, spokesman for Choice told the ABC that such contracts are damaging competition.
“CUB are actually limiting choice for consumers when it comes to the taps inside pubs. It puts them at a significant advantage over the small craft operators.”
Last year the Australian Competition & Consumer Commission launched an investigation into suggestions of anti-competitive behaviour within the wholesale beer markets, which the competition watchdog confirms is still being conducted. The new evidence will now join ACCC’s current investigation, which CUB is also involved in.
The ACCC told drinks bulletin: “The ACCC is continuing its market enquiries to better understand aspects of the supply conditions within the wholesale beer market(s)”, but added that it did not have further comment to add on both enquiries while they are underway.
Other brewing giant Lion is also not safe from investigations, currently part of ACCC’s wider investigation into the wholesale beer market. Lion says it is cooperating with ACCC on the investigation.
Together, SABMiller and Lion, owned by Kirin, own almost half the craft beer market in Australia, with products such as James Squire and Matilda Bay.
“We know that about 83 per cent of revenue in Australia flows to the big beer barons Kirin and SABMiller, and I think the question is, if exclusive dealing cuts competitors, forecloses markets and keeps competitors out, well then it may well be unlawful”, Mr. Godfrey also told ABC.
CUB was also under investigation by ACCC earlier last year, which forced the brewery to remove its Byron Bay Pale Lager from the market after its labelling was found to misrepresent the beer as being brewed by a small brewer in Byron Bay. ACCC felt the product misled consumers to believe they were supporting a small business, undermining the “unique selling point that such small businesses depend upon.”
drinks bulletin will be keeping a close eye on the investigation, reporting developments as they break.
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