Roger Protz has posted about the supermarket-led sales of beer in the UK and the power their supermarkets wield over even the brewers. This could easily be a pointer for what’s to happen in Australia with the supermarkets controlling a substantial portion of off-premises sales in Australia and quickly moving into homebrand beers to compete with even our biggest brewers. Brewers big and small should be very concerned at the prospect of less shelf space, less prominent displays and pressure for lower margins.
It’s worth revisiting a Four Corners report on the economic power of the big supermarkets from a couple of years back called The Price We Pay. We all like to save a few dollars, but it can end up being a false economy when this leads to higher prices or smaller range and selection.
Interesting article Matt. I remember when beer sales in supermarkets were legalised in New Zealand, straight away it bought in a new market dynamic and quickly became one of their weekly advertised categories. Thankfully within some of the more gourmet supermarkets selection was greater than that found in most typical bottleshops and may have in fact helped drive appreciation of craft beer within New Zealand. The billion dollar question if it were to happen in Australia is what stance would supermarket buyers take: range or price? Judging by other categories my guess unfortunately would be on price.