Craft Beer Prices

Replies to This Discussion

Permalink Reply by Alelover on December 17, 2009 at 9:59am

How about a policy of minimum cost per liter of alcoholic beverage sold, not pure alcohol tax. Say $10 minimum per liter, this would make 3 stubbies of sugar solution (tui, speights, cd) $3:30 each but would not affect the cost of a bottle of craft beer. Craft beer would then become an attractive proposition. The tax would also encompass wine, woodys and all the other alcopop stuff. It would not affect the cost of a pint in the pub and would control the abuse issue.

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Permalink Reply by Stu McKinlay on December 17, 2009 at 10:40am

price fixing... isn't that illegal?

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Permalink Reply by James P on December 17, 2009 at 12:23pm

Yet the wholesale electricity price is fixed to the highest cost producing power station....

Permalink Reply by HerrSchnapps on December 17, 2009 at 12:09pm

But I can think of some unintended consequences from this: an increase in price of craft beer. It's a 'premium' product, with it's price is set by a whole bunch of factors: production costs, shipping, middlemen etc, but I would say also the price of inferior substitute goods, such as the likes of Tui et al.

Make mainstream beer relatively more expensive, and suddenly craft beer is both less of a premium product, and in higher demand (as Tui et al is an inferior substitute)... aaannd, prices rise (and I can imagine all else being equal would be true for a lot of craft breweries, I doubt many would have the capacity, or even want, to suddenly double their output)

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Permalink Reply by Alelover on December 17, 2009 at 12:24pm

There may just be a chance in that situation that the sugar gangs may up their game and make some good beer to compete, after all people would be paying a premium price and expect more, that way everyone wins, more good beer available. Also consider economies of scale, if all craft breweries were running at capacity it lowers overhead costs and hence more profitability, more development, consumer wins...

Permalink Reply by john henderson on December 20, 2009 at 9:35pm

Weka Lager and Weka cider is selling in the dozen now for under $30, special down to $24.99. Now that is great value for money

Permalink Reply by nzbrewer on December 21, 2009 at 8:15am

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Permalink Reply by Stu McKinlay on December 21, 2009 at 10:20am

bd [that's two thumbs up]

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Permalink Reply by Ian Marriott on December 21, 2009 at 11:03am

What I find interesting aboutt this conversation is that the tax issue aside for a minute is that you all seem content to buy or brew your beer and consume it at home. Yet there are bars around the country trying to supply good quality beer to a discerning market and hopefully educating and reintroducing good beer to few on the way... But yes it is expensive. Just as expensive, sometimes more so than it is for the large supermarkets to purchase the same product and sell for youm to take home. So if price is no object, why then aren't more people drinking in Hallertau,Tahi, Galbraiths or why aren't there more bars like this.
Because as we all know certain large breweries control most of the market including the price and if you are paying lots of tax then you are making lots of money.
Yep there many factors to consider and I know that the majority of craft beer suppliers do freight offers to make buying more attractive to commercial, operaters and this definitely helps. I guess what I am trying to say is that I would not change the quality of product I have chosen to purvey and that means NO lion or Db product or foriegn product made under licence. But if if became too expensive and the support was not there then I would have no choice. There is no point in producing a premium product if there are not enough customers to sustain it and yes price will become an option. We have seen may small breweries disappear because the product wasn't in the market. I think at the moment that there are some great brewers but terrible marketers out there. I very rarely get a call from any of my current suppliers to see if I want or need more beer let alone other brewers whose products I don't stock. Whether you like it or not you need to get the product to market to sell it. For the record: I believe is personal accountability when you have a drink! Rant over and a cool yule to all!!

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Permalink Reply by Greig McGill on December 21, 2009 at 2:16pm

I know what you mean Ian. I love to go out and drink in a nice pub or bar. I do so, even though as a keen home brewer, I always have one or more tasty beers on in my home, and often on handpump dispense. You still can't beat the atmosphere of a few pints at (insert favourite venue here).

As prices rise further and further though, I'll not stop. I will drink less. These price rises are not the brewers trying to gouge us, they are simply a reaction to increased ingredient prices, increased tax, and increased distribution costs. That doesn't change the fact that as price increases, demand decreases - just not always in a totally linear manner.

For myself, I'll keep supporting great bars. I'll give up almost every other form of entertainment spending before I'll give up that.

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Permalink Reply by Alelover on December 21, 2009 at 9:55pm

Ian I totally agree with the marketing, as a craft beer drinker in the UK, I came to NZ and spent 18 sad months not knowing about the majority of craft beers available here. I only found them by actually searching myself. I know many people who love craft beer, but didn't know it was available.

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Permalink Reply by Tony on January 4, 2010 at 3:00pm

Well put Ian.

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