Bars and restaurants dislike absorbing brewery price hikes

20 February 2012

Bars and restaurants have had a “guts full” of absorbing brewery price hikes

The hospitality industry is tired of the country’s large breweries hiking up prices and the public believing these increases should be absorbed by small business owners, says the president of Hospitality New Zealand, Adam Cunningham.

Mr Cunningham was commenting on DB and Lion’s recent decision to increase prices for most of their alcohol products from early March.

“The belief that prices can just continue to increase on a regular basis without the public seeing a change cannot be justified”.

“Many operators believe they have no option but to try and absorb these cost increases to ensure their customers remain loyal and this approach is causing them to suffer. The public just needs to be aware that the cost increase on any product to an operator must be passed on and the industry has certainly had a guts full of taking the flak for price increases that we don’t initiate, don’t like and are unable to control,” Mr Cunningham said.

“Many of our members are small, locally-owned businesses. Right now, lots are struggling. They will have no choice but to pass on these charges. If they don’t increase their prices, they will go under.

“That would result in fewer controlled licensed premises to drink in, people, particularly younger people, will flock to local supermarkets where they can buy well advertised cartons of cheap liquor. They drink at home, in flats and in uncontrolled environments before heading into town.

“The public suffers while those of our members who are still in business clean up the mess, and large brewery shareholders are far, far away.

About Hospitality New Zealand
Hospitality New Zealand was established in 1902 as the United Licensed Victuallers Association. It is a voluntary trade organisation of like-minded businesses and operators in the hospitality sector that is governed by a Board of nine elected members and owned by its members. Hospitality New Zealand continues to be the voice of Hospitality, representing over 2,400 hospitality businesses, providing significant advocacy work, expert advice and a range of services to its members at both local and national levels. See www.hospitalitynz.org.nz.

ENDS

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