Australia: Craft brewers not locked out of bars by big brewers – competition watchdog

Australia’s competition watchdog on July 13 found craft brewers were not being locked out of bars because the likes of Carlton United Breweries and Lion were strong-arming publicans through exclusivity provisions and volume requirements, The West Australian reported.

The Australian Competition and Consumer Commission investigation looked at 36 venues in NSW and Victoria and found deals between those businesses and the big brewers were not likely to substantially lessen competition.

The complaints stemmed from allegations Lion and CUB were forcing bars to devote four beer taps out of five to name brands in exchange for cheap beer and other incentives.

“Although some venues had exclusivity arrangements, most pubs and clubs said they did not feel constrained from allocating taps to smaller brewers and could make taps available for craft beer if necessary,” ACCC deputy chairman Michael Schaper said.

“While some craft brewers may have been refused access to taps by certain venues, our investigation found that the venues were responding to consumer demand for certain beer brands, rather than restrictions imposed by the big brewers.”

“In fact, over half of the venues contacted by the ACCC indicated that customer preference was the key factor in determining the brands, types of beer and number of craft beers offered by the venue.”

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