By James Atkinson
Australian consumers are prepared to pay more for beer than they currently do, according to Foster's CEO Ari Mervis.
At the Australian Liquor Stores Association (ALSA) conference this week, Mervis said price deflation is one of the big challenges currently confronting the entire liquor industry.
"If we had a little bit of inflation come into the category it would be quite healthy for your margins, certainly for our margins," Mervis told retailers.
He reiterated SABMiller's belief that Australians' current expenditure on beer falls short of its potential, based on global comparisons.
"We walk into outlets and we see six-packs of beer on a Saturday night at $16.99 or $17.99 – people are trying to compete on price in that segment," Mervis said.
"We say to the retailer, if someone's got a barbeque on a Saturday night, they'll pay a lot more for a six-pack of beer for the convenience factor."
Mervis said bottleshops can improve consumers' average spend by offering them special deals such as a six-pack of beer together with a longneck or two bottles of cider.
"The consumer doesn't really want to walk out with $3 in change, you'd be quite happy to spend that on something, and get value for it," he said.
Sounds like preperation to take VB back to 4.9% alc content to me
this doff-es needs to get a grip on reality ,when you have DANS on every side of you try and lift your prices,until indos start getting prices like woollies,this can’t happen
MAYBE ARI SHOULD TRY AND HELP SMALLER INDEPENDENT OPERATING BOTTLE SHOPS AND PUBS, WITH REASONABLE COST PRICES CLOSER TO WHAT DAN MURPHYS AND LIQOURLAND COP, WHAT A JOKE , I SOMETIMES WONDER WHAT PLANET THESE OVERPAID CEOS AND DIRECTORS ARE ON, THE FACT IS ARI WE ARE IN A DEPRESSION WHERE THE GOING IS TOUGH CHRIS TAYLOR LICENSEE PUB OPERATOR 26 YEARS
Wake up from your dream ARI. Customers are driving the price. Desperate retailers cut prices to compete with the large retailers, who are getting a better deal from you. Todays customers want more for less. The big retailers have driven this attitude into them and it has become a national sport. Desperation kicks in just to survive.
These guys in massive companies don’t know what its like to be a small operator