Labor’s commitment to Unfair Trading Review: A first step towards a fairer market for independent breweries

Last week, the Labor Government announced that if re-elected it would undertake a consultation in 2025 that would consider whether specific unfair trading practices should be targeted to protect small businesses and that this consultation would complement a statutory review of the amendments to strengthen unfair contract term protections that were legislated in 2022.
On behalf of the 675+ small Australian owned brewing businesses we look forward to the opportunity to participate in any such consultation.
Strengthening the legal protections is a necessary step in ensuring there will be a thriving independent brewing industry in the future.
“A consultation that enables independent breweries to provide information confidentially is so important – as our members routinely tell us that they fear going on any public record with their concerns due to the likelihood of retaliation.
And in a market where the big brewers have 83% market share and dominate the on premise market – losing ranging in retail would devastate a small business.” Says Kylie Lethbridge, Chief Executive Officer of the Independent Brewers Association.
Last year, in responding to the ACCC Inquiry into Supermarkets, we set out in detail some of the unfair practices facing our members.
Ultimately, the Supermarket Inquiry declined to consider the pricing and competition in regard to alcohol.
We have been asking Government to address the market structure to ensure fair access for small brewing businesses and while we are pleased that there may be some improved legal recourse for small brewing businesses as a result of the announced consultation, we will continue to point to the evidence that demands a thorough review of the beer market in Australia.
Assistant Competition Minister Andrew Leigh is once again on the money – “when competition turns into coercion, it’s not competition at all.”
Early last year, Leigh also said that the House Standing Committee for Economics Better Competition, Better Prices Report “showed there is plenty of reason for the Australian Competition and Consumer Commission to investigate the beer industry.”
We hope that Assistant Minister Leigh gets the support of his Labor colleagues to once and for all take a look at the glaringly anti-competitive Australian beer market.
