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Earlier this week, Dr Craig Emerson released his report examining whether there was market failure in the grape and wine sector, and providing independent impact analysis of regulatory options to deal with those issues (the Emerson Report).

The Emerson Report was commissioned by the Federal Government and Wine Australia in August 2024, and followed extensive engagement with stakeholders in the grape and wine sector. Many of the findings and recommendations by Dr Emerson apply directly to the Australian Beer Industry. Specifically, Dr Emerson noted that a “Power imbalances exist between many independent wine makers and oligopolistic liquor retailer. Endeavour Group, Coles Group, Metcash Limited and ALDI comprise around 80 per cent of the domestic retail market, with Endeavour Group and Coles Group having a combined market share of around 60 per cent.”

The report also noted the following relevant findings:

• Informed choice for wine consumers – it should be clear to wine consumers if they are purchasing own-brand wines or not.
• Data to support winemaker innovation – small, independent winemakers should have timely access to sales data for their wine sales through vertically integrated, oligopolistic liquor retailers, and larger winemakers should have access to the market data at the same level of granularity as that for retailers’ own-brand wine labels.
• Application of general competition and consumer laws – a range of strengthened competition and consumer law amendments that have already been enacted, together with announced and foreshadowed reforms, should be applied to deal with anti-competitive behaviour and unfair practices in the grape and wine sector.

The Independent Brewers Association (IBA) has long advocated for clear labelling of home-brand beer which has increased dramatically over the past five years, and has pointed to the significant power imbalance in relation to access to data for independent brewers.

We were encouraged in the Report that Dr Emerson he had obtained the agreement from both Endeavour Group and Coles Group that the companies would “transition over the next two years to publishing on the back labels of their wines the ultimate owner of the winery and the owner’s address”.

We look forward to securing a similar commitment from Endeavour Group and Coles Group for their home-brand beer.

The IBA have also advocated strongly for a review of the beer industry so that our members can raise their concerns without fear of retaliation. We need the totality of the behavior examined rather than each individual issue in isolation. Unfortunately, the IBA does not have the resources of Wine Australia to commission an independent investigation or report and so we look forward to working with Government to on an examination of the market failure in Australia’s beer industry.

“Many aspects of the Emerson Report could have been written about the experiences of Australian owned, independent breweries. We wish we had the resources to commission such a report, but we are going to have to rely on government for a review.

We made real progress in the last term of the Albanese Government and I have confidence that in this term of government they are committed to increasing competition and productivity in the beer industry and supporting small businesses. I look forward to continuing to work with Government to address the market failure in Australia’s beer industry” says Kylie Lethbridge, Chief Executive Officer of the Independent Brewers Association.