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Posted: Jul 14 2017, 08:36 AM
Member No.: 1
Joined: 20-July 11
Rep: 47 pts
Why craft beer brands are struggling to find a place at the taps
Ever wondered why one pub seems to be all about VB and Carlton Draught and another serves Tooheys New alongside James Boags?
For beer or cider brands, the tap at a pub is as highly sought after as the eye-level shelf in a supermarket.
The big distribution and brewing companies often compete to get their slice of the action, with companies like Lion and Carlton United getting venues to sign contracts to make sure they take up as much real estate on the icy tap row as possible.
But some craft brewers believed they were getting a raw deal by being locked out of the taps.
"We've approached venues and been told that they've been fully contracted," brewer and chair of the Independent Brewers Association, Ben Kooyman, said.
"One supplier has effectively locked out another supplier in, perhaps, pale ale … we assume there is exclusivity on the taps."
On the basis of allegations like this one, the Australian Competition and Consumer Commission (ACCC) ran an in-depth investigation and what they found was quite surprising.
Venues are offered incentives contained in contracts and negotiated by sales people working for the distribution companies.
They might be offered a refrigerator upgrade or rebates for meeting volume targets or some other kind of bread and butter commodity in a pub.
In return, they might agree to use, for example, five out of their eight taps for that company's beers, or they could promise that they will buy a certain amount of beer each month, or run brand-related promotions — the list goes on.
Craft breweries aren't the only small business that struggle to get a market share without any effort on money to back them up.
Whinging about it won't help.
Besides that, some of them name their beer with silly names.
Living In An Elected Dictatorship
Flin's opinions and comments reflect his perception of the facts and not necessarily reality