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.

1 Comment