Why Liquorland photo of non-alcoholic wines has sparked outrage

A photo of a bottle shop shelf has led frustrated shoppers to demand an explanation as to why non-alcoholic drinks are so expensive when they are not taxed as heavily as alcoholic wine.

A Reddit user walked into a Liquorland store and was furious that Zero Percent wines, beers and spirits cost the same if not more than their alcoholic counterparts – from between $AUD10 and $18 a bottle.

‘I thought a large percentage of alcohol was tax, that shouldn’t apply to non-alcoholic drinks, right?’

Major bottle shop chains, breweries and distilleries told Daily Mail Australia that there are reasons non-alcoholic wines are sold at similar prices – higher production costs, including a more complicated brewing process, drive prices up.

At Dan Murphy’s, the 700ml bottle of Gordons London has hardly any price difference between the non-alcoholic version and the alcoholic version

Online at Dan Murphy’s, a 700ml bottle of Gordons London non-alc gin costs $37.99, while the alcoholic version costs a little more at $46.99 and only $41.90 for members.

Endeavor Group, Dan Murphy’s owner, said the complicated manufacturing process of non-alcoholic drinks is the main reason prices are so close.

“It is important to note that in some cases these products have different manufacturing cost structures due to the process undertaken to remove the alcohol,” a spokesperson told Daily Mail Australia.

Seadrift, a local Sydney craft distillery, also pointed to the cost of producing non-alcoholic spirits as a factor in their pricing.

Seadrift co-founder Carolyn Whiteley said the growing non-alcoholic beverage market is still new, so small distilleries also bear the brunt of many unexpected costs.

“The costs to develop, manufacture and market are all significantly higher, meaning the only people making money are the retailers and the big brands who can drive brand awareness,” Ms Whiteley told Daily Mail Australia .

Non-alcoholic distilleries often use manual labor and do not have automated production lines or larger stills that can produce much higher volumes for the same or lower labor costs.

The benefits of big breweries also affect non-alcoholic beers like Heaps Normal, another Sydney brewery, which echoed Seadrift’s concerns about the market.

“Our beers are brewed in the same way as normal craft beers, using the same high-quality ingredients,” a spokesperson told Daily Mail Australia.

“We’re also a small independent company, so we don’t benefit from the economies of scale in our supply chain that the big brewers have.”

The group also said they had to use higher amounts of some ingredients to ensure their beer meets the standards of others on the market.

Seadrift co-founder Carolyn Whiteley (left) said the growing non-alcoholic beverage market is still new, so small distilleries must also bear the brunt of many unexpected costs

Heaps Normal, a Sydney brewery behind low-alcohol beers, said bigger brands have an easier time in the market

Ms Whiteley said non-alcoholic brands also typically have to spend a lot on marketing.

So far, very few if any non-alc brands have reached a point of broad brand recognition in Australia, resulting in much higher marketing spend and lower brand loyalty.

“If we want good quality local non-alcs to exist on the market, we need to support the industry,” said Ms Whiteley.

“If not, we will be reduced to products made from basic colors and flavours, such as British Gordons 0%, which will instead be imported and sold here.

“For some people that’s fine, for others trying to moderate or give up – something that tastes great, is made from natural ingredients, supports local industry and is really good for you is worth paying for.”

Coles, the owner of Liquorland, declined to comment.