Brewers warn of increased prices as costs rise

Brewers have warned that packaged beverages will become more expensive and could increase by a larger margin than pints at the pub.

A recent increase in excise tax and a spike in aluminium and ingredient prices are putting pressure on independent and larger-scale brewing companies across Australia.

Matt Wilson, founder of Wilson Brewing Co, said brewers had tried to keep prices as low as possible, but it was inevitable that they would rise.

He said that you're not only going to see an increase in pint prices at the pub, but you're actually going to see a larger increase in packaged products that you would purchase and take home to drink.

The most recent hike of 3.84 per cent for full-strength beer was the largest in 20 years, as the alcohol excise tax increases every six months.

The cost of brewing had ballooned by around 60 per cent over the past two decades, and that flowed on to consumers, according to Wilson.

He said that there might be a $5 to $10 increase in carton prices around Christmas time or even before.

There are multiple inputs that go into crafting and brewing beer, all of which have been inflated.

Mr Wilson said aluminium, used to package cans of beer, was rising in cost.

Grain is probably our third biggest input. Australian barley prices were trading above historical averages, according to GrainGrowers chief executive David McKeon.

He said that the bids for barley dollars per tonne in Australia are looking at anywhere in the low to mid three hundred dollars per tonne.

He said it was important to not only consider the raw price of barley going into an end product.

Resource analyst Tim Treadgold said that aluminium, a popular material for packaging, was an expensive item to produce due to the amount of energy it required.

He said that in order to get the can through the plant onto a truck, the trucks that haul up there are running on liquid fuels, which are also expensive.

Independent Brewers Association chief executive Kylie Lethbridge said she had concerns for the industry.

She said that business in the country would be affected by material shortages, material shortages and challenges such as freight costs.

If those waves keep hitting, there is only so much a business can stand, and that may mean we lose some independent breweries around the country. She said that the price of beer will rise, whether you drink it in the pub from a tap, or whether you pick it up from the bottle shop.