Why VB, Great Northern and Toohey’s are being slammed

Australian craft brewers claim Japanese giants, who own nine of our ten best-selling beers, have ‘locked them out’ from reaching drinkers in pubs across the country.

Sydney brewer Philter, run from the trendy western suburb of Marrickville, wants the Australian Competition and Consumer Commission (ACCC) to investigate and break what it claims is a monopoly.

The independents say popular brands from Carlton & United Breweries (CUB) and Lion Nathan – both now Japanese-owned – dominate the tap through contracts with pubs that lock out smaller brewers and limit choice.

Five of Australia’s best-selling beers are owned by Asahi (Great Northern, Carlton Dry, VB, Pure Blonde and Asahi), while four are owned by Kirin (XXXX, Corona, Toohey and Hahn).

Because Asahi and Kirin are Japanese, most of the profits go abroad.

All these Australian beers have one thing in common: they are owned by Japanese companies

The only Australian-owned beer in the top 10 sales charts is Adelaide-based Coopers.

Total annual beer sales in Australia are estimated at $22 billion, but only 7 percent is spent on independent breweries.

Mick Neil, co-founder of Philter Brewery in Sydney, says local breweries’ share of sales must increase if they are to survive.

While the number of breweries has grown in recent years, many are struggling with unsustainable costs that have risen dramatically since Covid.

“Indie breweries employ 50 percent of all workers in the beer industry, but only bring in seven percent of sales,” Neil told Daily Mail Australia.

He claims independents like Philter are missing out on a fairer share of pub sales and wants drinkers to become aware of where the money is going.

“If you want to support your local community and brewery jobs and keep the dollars in your area, buy a locally made beer,” Mr Neil said.

‘We’re trying to make a break. We employ 30 people in the area, all of whom live within walking distance of the brewery.’

He believes the decades-old system of giant breweries buying up contracts for the majority of taps in a given pub is unfair and should be ditched to promote Australian products and keep profits onshore.

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“These guys have spent decades entering into exclusive contracts with pubs that have prevented independent beers from getting a fair chance,” Mr Neil said.

Philter claims these tactics “would be considered anti-competition and the government would root them out with appropriate legislation.”

The Brewers Association of Australia, which represents CUB, Lion Nathan and Coopers, told Daily Mail Australia there are more breweries in Australia than ever.

‘Craft beer has grown enormously over the past fifteen years. That’s a good thing for Australian beer and beer drinkers,” said John Preston, CEO of the BAA.

‘The share of independent beer in draft beer has increased seven times over the past fifteen years.’

Mr Neil said the growth is coming from bottle shop sales rather than pubs, which are crucial because that’s where drinkers can decide what to buy by the bottle.

He claims drinkers are wrong if they have to buy four or six packs of beer or cases instead of trying a schooner of a new beer in a pub.

“It’s easier and cheaper to try a new beer for $9 or $10 a schooner, rather than having to buy a six-pack or larger for a lot more money.”

A spokesperson for Lion Nathan told Daily Mail Australia it only does what drinkers want.

“It is the public’s job to give their customers what they want,” a spokeswoman said.

‘In pubs where craft beer is popular, you will usually find our beers next to a range of independent brands.’

Philter employs 30 people, all of whom live within walking distance of the brewery in Marrickville

Mick Neil (pictured left, with Philter co-founder Stef Constantoulas) says many small brewers are struggling with unsustainable costs that have risen dramatically since Covid

But Neil doubts whether pubs can offer drinkers real choice with traditional tap contracts.

‘Maybe you don’t even ask the consumer if he wants something different. I’d say they’re assuming, not so much asking.’

An Asahi spokesperson said pub owners make independent craft beers available on tap “in the vast majority of our customers’ locations”.

“You only have to visit a local bottle shop or pub to see how much Australian beer culture has changed.”

The ACCC responded to questions from Daily Mail by saying it encourages all brewers concerned about potential anti-competitive behavior to ‘report’ it.