With election season underway, Evin Craney, Chair of the Independent Brewers Association (IBA), is highlighting the opportunity for indie brewers to put pressure on their local MPs to push for collective change.
Despite contributing $3bn to the Australian economy each year and employing more than half of the entire beer sector, independent brewers are disproportionately impacted by growth-inhibiting taxes.
While the IBA said the pre-Budget announcement of a freeze on draught beer tax was a step in the right direction, the Budget discriminates against packaged beer and offers no new direct support for the independent brewing industry.
As highlighted by Craney in a recent interview with Beer & Brewer, tax reform remains one of the IBA’s key initiatives, and on Friday 21 March, he met with Federal MP of Indi, Dr Helen Haines, and Mountain Monk Brewers Head Brewer, Anthony Brewergray, to raise concerns about the long-term viability of the industry and the impacts that outdated and ill-advised policy decisions are having.
Highlighting the points discussed, Craney told Beer & Brewer: “The IBA has key policy requests that in their simplest form are, for lack of a more eloquent phrase, ‘common sense’. We are asking for a full industry-wide pause on excise for two years that doesn’t exclude package product.
“In Australia the volume of draught beer sold nationally is estimated to be in the 90+ per cent region by the two foreign-owned breweries – the draught-only pause disproportionately benefits foreign companies and not Australian-owned. This pause will also not lessen the cost of beer over the bar so whilst it will slow down the growth in cost, consumers will not see a reduction in price.
“We would then like to see a full review of beer excise tax – something MPs from both Labour and Liberals have announced would happen if elected – that looks at the long term viability for independent Australian-owned brewers and repositions our industry to being more accessible for consumers.”
Advocating for indies on a national level
Beyond tax reform, Craney also highlighted the need for a formal ACCC enquiry into the market duopoly, which he says “allows foreign-owned businesses to abuse their market powers to restrict access for not just producers but consumers as well”.
“Asahi and Lion Nathan by their own admission own roughly nine-10ths of the beer market which means consumers are not being allowed fair access to alternative products,” Craney continued.
“Twice-annual increases on production, matched with heavily restricted market access, puts the long-term viability of our industry in grave danger. When two foreign-owned businesses leave single digit percentage of industry access for around 700 other brewers who happen to be domestically owned it is not an equitable system.”
While market restrictions are evident, Craney praised Haines for advocating for the independent brewing industry on a national level.
“Dr Haines has been a champion for all of these reforms as she directly understands that brewers in regional areas, such as Indi where she represents, are major contributors to the local community economically whether it be via employment, manufacturing or tourism.
“Since our meeting a few weeks ago she has already written letters to fellow MPs, the head of the ACCC and followed up on previous correspondence she made with the federal treasurer on our behalf also,” Craney added.
Have your voice heard
As Chair of the IBA, Craney will continue to advocate for a resolution that addresses the issues facing the independent brewing industry and facilitates an environment that doesn’t disproportionately benefit foreign-owned businesses.
Now, he’s imploring others in the independent brewing industry to raise their concerns and have their voices heard going into the next election.
“I would ask for [independent breweries] to use the incredible resources made available to them by the team at the IBA. Kylie, Sabrina and Emily have created amazing assets for members to use when engaging with MPS. The IBA might not be a mega corporation but just like indie beer itself we bat above our average and the team are experts in what they do.
“If you have questions beyond what is available, reach out directly to the IBA executive as well as our amazing board directors for more support. Obviously when connecting with your local MP, its vital you raise any concerns that impact your community as well as discuss the national issues at hand.
“This is likely to become somewhat of a catchphrase for myself given the amount of times I am saying it, but there is power in numbers! If we collectively work together, we can make meaningful change that won’t just benefit us individually but may genuinely change the course of history in Australia for beer. I can’t speak for everyone, but I know for myself and our team that being a part of potentially historic change that could support generations to come is an incredible motivator to push even when times are hard,” Craney concluded.
How can you engage your local MP?
Offering advice to others in the brewing industry about establishing a relationship with your local MP, Craney says his experience was as simple as reaching out to Haines on her official Government email address found on her website.
“It’s actually been almost 100 per cent the same for all MPs I have sat down with over the past two-and-a-half years. They do take a little bit of time to come back to you due to the sheer volume of emails they would receive. In my experience, after the initial response you are likely to have direct contact with one of their staffers who is then your key point of contact going forward,” Craney stated.
“My advice to brewers and punters alike is to remember that your MPs work for you. They have an obligation to work on behalf of their constituents, even if you feel disenfranchised with the political process change comes via action. If you don’t hear back, don’t be dismayed. Keeping knocking on the door until they have to acknowledge you, the good ones are the ones who don’t keep you waiting too long.”