News

On Friday, the Australian Competition and Consumer Commission released the final report into the inquiry into supermarket pricing.

The report acknowledges the significant impact on rising costs and makes a series of recommendations that aim to ensure clear pricing, greater transparency for the consumer and on rebates suppliers pay to supermarkets as well as to strengthen the Food and Grocery Code of Conduct.   

These are all welcome steps forward in protecting small businesses and enhancing transparency and consumer choice.

Unfortunately, none of these recommendations will apply to the alcohol retail sector – leaving our Australian owned small businesses with limited to no recourse.

Last week, we welcomed the Labor Government’s commitment to a consultation on Unfair Trade Practices if re-elected.   We have also welcomed the recommendation from the Food and Beverage Manufacturing Inquiry to a thorough review of the alcohol industry. 

At the IBA we have advocated for the equivalent of the Food and Grocery Code of Conduct to apply to the alcohol retail sector which is highly concentrated between Endeavour Group and Coles Liquor Group. To date, the major retailers have declined to adopt a voluntary code, and we are hopeful that any government review will result in the minimum of a Food and Grocery Code of Conduct equivalent for alcohol – which other suppliers have been able to rely on for almost 10 years.

As costs continue to increase for small businesses, big retailers maintain their profit margins. They do this while also forcing small producers to simply accept outcomes such as extended payment terms or de-ranging without so much as a person for the supplier to speak to. And at present, there is no recourse, no regulator or higher power for these producers to go.

Over the past 5 years, one of the biggest changes in the beer industry has been the creation of home-brand beers – often presenting themselves as ‘craft beers.’  Unlike when you buy flour or milk, there is no clear labelling for the consumer to indicate that the product is owned by the retailer.  

If the inquiry into supermarkets showed us anything it’s that consumers are sick of living in the land of the duopoly – and it’s high time that small Australian owned breweries receive some of the protections afforded other producers.

If you are a consumer and you want greater transparency in labelling you can join our campaign here and when purchasing – always look for the Independent Seal.