The Independent Brewers Association (IBA) has said all independent breweries, consumers and businesses in the supply chain need to come together in the fight to retain a healthy independent brewing industry.
The cost of doing business for Australia’s independent brewing industry continues to present challenges, and in this election year the IBA has that over the coming weeks it will be helping its members to share key messages from its 2025 campaign for change.
The IBA said: “We know that for many of our breweries the cost-of-living crisis coupled with the ongoing and ever increasing regulatory burdens, excise and CDS costs are making it impossible to survive.
“We know that you are frustrated and the comments from the Treasurer today might leave you feeling like there is no light on the horizon for meaningful change.
“But only the Federal Government can change the big structural issues that need fixing to give independent breweries a fair go.
“We are in the fight to retain a healthy independent brewing industry – but it’s going to take every one of us to get results.
“The IBA alone (with 2.6 people) cannot save a $3.53bn dollar industry. It’s time for everyone that is able to put their shoulder to the wheel.
“All independent breweries and your consumers, as well as businesses in the supply chain, can be part of the solution.”
The IBA also called out the comments from Treasurer Jim Chalmers, after he issued a ‘warning’ to pubs not to dupe Aussie beer drinkers over the incoming excise tax increase because he says it amounts to less than a cent per schooner or pint.
The IBA said: “Chalmers thinks that the beer drinker doesn’t understand what is actually happening – this is not about the one per cent today – it’s about it going up twice a year for decades.”
The Association continued: “An inquiry into the competition led by Chalmers own government concluded that ‘Australia has one of the most restricted beer sectors in the world, with two large foreign-owned corporations dominating beer supply, and two large companies dominating the retail beer sector’ … and heard evidence that the two foreign owned breweries derive as much as 40 per cent profit margins on their beer.
“That is not the case for our small Australian owned independent brewing businesses. In September 2024, 48 per cent of our members reported that they are not able to sustain profitability.
“In the period since January 2023, at least 47 breweries have entered voluntary administration or closed their doors. We estimate the true number to be much higher than that as a result of quiet and unpublished closures.
“As we head into the election this year – independent breweries and their communities are going to be demanding that their new government take action to give small independent brewing businesses a fair go.
“Decades of unfair and stifling regulation means that beer made by an Australian owned small business is becoming unaffordable – at the pub, at your local brewery or over a BBQ in your back yard. And frankly that’s un-Australian.”
More details on the next steps the IBA is taking and how you can get involved with its 2025 campaign are available on the Independent Brewers Association website.