1 00:00:00,320 --> 00:00:03,800 Speaker 1: But today inflation figures come out and that has delayed 2 00:00:04,000 --> 00:00:08,240 Speaker 1: the indexation that is normally applied to things like petrol 3 00:00:08,880 --> 00:00:13,200 Speaker 1: and beer, because prices will go up, no doubt about that. 4 00:00:13,280 --> 00:00:17,919 Speaker 1: Come in this particular instance, because the CPI is out today, 5 00:00:18,239 --> 00:00:21,160 Speaker 1: July thirty one. Normally it's out at tad earlier, about 6 00:00:21,160 --> 00:00:23,560 Speaker 1: a week earlier, but in the cycle it's today, which 7 00:00:23,600 --> 00:00:28,400 Speaker 1: means any changes to petrol prices, beer prices, smoking, whatever 8 00:00:28,440 --> 00:00:33,599 Speaker 1: indexation affects this tax that the federal government charges on 9 00:00:34,120 --> 00:00:38,120 Speaker 1: all these things is delayed by about five days. But 10 00:00:38,280 --> 00:00:41,479 Speaker 1: come the fifth of August you can expect prices in 11 00:00:41,520 --> 00:00:44,000 Speaker 1: pubs to go up. Let's have a chat with John Preston, 12 00:00:44,120 --> 00:00:48,640 Speaker 1: CEO Brewers Association of Australia. John, Good morning, morning, Matthew. 13 00:00:49,080 --> 00:00:50,000 Speaker 2: Having me on what are. 14 00:00:49,920 --> 00:00:51,720 Speaker 1: We looking at? Do you think coming we'll have to 15 00:00:51,840 --> 00:00:54,080 Speaker 1: we'll know in about an hour as to what the 16 00:00:54,080 --> 00:00:59,000 Speaker 1: CPI figure is for this time around, but normally it's 17 00:00:59,040 --> 00:01:03,040 Speaker 1: a what five ten cents, Yeah, that's. 18 00:01:02,960 --> 00:01:05,360 Speaker 2: Right, it'll be about it's an annual four percent increase. 19 00:01:05,480 --> 00:01:10,720 Speaker 2: So look it's you know every six months, every you know, 20 00:01:10,760 --> 00:01:12,240 Speaker 2: every six months has been going on to the last 21 00:01:12,280 --> 00:01:15,560 Speaker 2: thirty six years. It's not a big hit every time 22 00:01:15,600 --> 00:01:18,760 Speaker 2: that happens, but it's that cumulative increase that is, you know, 23 00:01:18,800 --> 00:01:21,039 Speaker 2: that has driven our be attacks to be the third 24 00:01:21,120 --> 00:01:22,080 Speaker 2: highest in the world at the. 25 00:01:22,040 --> 00:01:25,320 Speaker 1: Moment, and that's not going to change obviously. Do you 26 00:01:25,400 --> 00:01:26,959 Speaker 1: do you think it will have an effect on business? 27 00:01:27,000 --> 00:01:29,560 Speaker 1: I mean cost of living At the moment, it's not 28 00:01:29,600 --> 00:01:31,720 Speaker 1: a big hit, as you say, every single time, but 29 00:01:32,200 --> 00:01:35,000 Speaker 1: I suppose if people are counting every cent as we 30 00:01:35,200 --> 00:01:38,960 Speaker 1: are at the moment, you might see that reflected at 31 00:01:39,040 --> 00:01:40,080 Speaker 1: people standing in the bar. 32 00:01:40,840 --> 00:01:44,919 Speaker 2: Oh absolutely, And I think you know we we're definitely 33 00:01:44,920 --> 00:01:49,640 Speaker 2: seeing it reflected there. And you know, again people that 34 00:01:49,760 --> 00:01:52,880 Speaker 2: people are faced with real cost of living challenges. We 35 00:01:53,000 --> 00:01:56,240 Speaker 2: all know that every every dollar counts, every seven count 36 00:01:56,360 --> 00:01:59,720 Speaker 2: So people do notice when you know, they going to 37 00:01:59,720 --> 00:02:02,520 Speaker 2: the part whether the bottle shop, and the price goes 38 00:02:02,600 --> 00:02:05,200 Speaker 2: up every every six months. So I mean in the 39 00:02:05,200 --> 00:02:09,680 Speaker 2: bottle shop by a slab, twenty dollars over twenty dollars 40 00:02:09,720 --> 00:02:13,640 Speaker 2: of that now is X side alone. You've got another 41 00:02:13,680 --> 00:02:17,480 Speaker 2: five dollars or so ONDSD so that's almost pretty much 42 00:02:17,480 --> 00:02:19,200 Speaker 2: half the price of the slab is going to the 43 00:02:19,200 --> 00:02:22,160 Speaker 2: federal government one way or the other. So those increases 44 00:02:22,280 --> 00:02:26,640 Speaker 2: absolutely have an effect, and they hit people who enjoy 45 00:02:26,680 --> 00:02:29,079 Speaker 2: a beer, you know, they hit them hard. People who 46 00:02:29,120 --> 00:02:31,079 Speaker 2: want to just you know, have a barbecue at home 47 00:02:31,120 --> 00:02:32,600 Speaker 2: and get a slab or go out and have a 48 00:02:32,600 --> 00:02:34,520 Speaker 2: beer in the pub with their mate. So the meal 49 00:02:34,560 --> 00:02:36,680 Speaker 2: with their family and get a beer. It does, it 50 00:02:36,720 --> 00:02:37,520 Speaker 2: does hit them hard. 51 00:02:37,800 --> 00:02:39,840 Speaker 1: And that's the thing. It's not just coming out of 52 00:02:39,840 --> 00:02:41,520 Speaker 1: a tap at the pub. It is been a slab 53 00:02:41,560 --> 00:02:43,720 Speaker 1: as well at home, I'm having a barbecue, You're paying 54 00:02:43,720 --> 00:02:44,320 Speaker 1: it either way. 55 00:02:45,440 --> 00:02:49,119 Speaker 2: Absolutely, look like they aren't miss So, as I said, 56 00:02:49,120 --> 00:02:51,480 Speaker 2: we have one of the highest beer taxes in the 57 00:02:51,480 --> 00:02:55,160 Speaker 2: world now and you know again it's just it's making 58 00:02:55,200 --> 00:02:58,920 Speaker 2: it increasingly unaffordable for people to enjoy a beer, whether 59 00:02:58,919 --> 00:03:01,120 Speaker 2: that's the bottle shop or out in the pub, bar 60 00:03:01,280 --> 00:03:05,600 Speaker 2: and restaurant. And look, I think it is entirely possible 61 00:03:05,639 --> 00:03:07,480 Speaker 2: for the government, for the Treasurer, for the Prime Minister 62 00:03:07,560 --> 00:03:10,079 Speaker 2: to step in at any time and say, right, we're 63 00:03:10,120 --> 00:03:12,440 Speaker 2: going to do something about this. We we at the 64 00:03:12,480 --> 00:03:16,040 Speaker 2: Brewers Association of call for a cut in draft the attacks, 65 00:03:16,080 --> 00:03:18,640 Speaker 2: so the tax that is applied to be. 66 00:03:18,880 --> 00:03:19,680 Speaker 1: Served through. 67 00:03:21,080 --> 00:03:23,800 Speaker 2: The tap and pubs and bars. You know, that would 68 00:03:23,800 --> 00:03:26,440 Speaker 2: be a very small it would have a very small 69 00:03:26,480 --> 00:03:30,600 Speaker 2: impact on revenue, but it would make a massive difference 70 00:03:30,639 --> 00:03:34,640 Speaker 2: with beer drinkers in the pub. So it's entirely possible 71 00:03:34,639 --> 00:03:36,200 Speaker 2: for them to step in and do something. I mean, 72 00:03:36,240 --> 00:03:38,480 Speaker 2: we've been asking for for a couple of years now, 73 00:03:38,520 --> 00:03:40,640 Speaker 2: and you know, we're really hopeful but that at some 74 00:03:40,680 --> 00:03:42,240 Speaker 2: point they'll fit up and listen. 75 00:03:42,760 --> 00:03:46,720 Speaker 1: Yeah, indeed, So what's how's the industry coping overall? At 76 00:03:46,720 --> 00:03:50,560 Speaker 1: the moment? John going through COVID period and then hit 77 00:03:50,640 --> 00:03:53,560 Speaker 1: by increased cost all over the place for everybody, how 78 00:03:53,720 --> 00:03:54,920 Speaker 1: how's it fearing? 79 00:03:56,000 --> 00:03:58,480 Speaker 2: Look, it's times are really tough and and you know 80 00:03:58,600 --> 00:04:00,720 Speaker 2: good at that is across the board. But I think 81 00:04:00,800 --> 00:04:05,640 Speaker 2: for anyone in an industry where it's discretionary, it's entertainment, 82 00:04:05,680 --> 00:04:07,600 Speaker 2: it's people wanting to go out and have you enjoy 83 00:04:07,640 --> 00:04:12,480 Speaker 2: themselves as opposed to the absolute necessities, it's even tougher. 84 00:04:12,760 --> 00:04:15,320 Speaker 2: So you know, we've seen you know, brewers are feeling 85 00:04:15,320 --> 00:04:18,680 Speaker 2: it right across the board. That's brewers large and small. 86 00:04:19,360 --> 00:04:22,120 Speaker 2: We're seeing it in our pubs, clubs, bars and restaurants 87 00:04:22,480 --> 00:04:26,680 Speaker 2: and beer drinkers and you know, anyone who enjoys a 88 00:04:26,720 --> 00:04:31,080 Speaker 2: tipple is really getting hurt. So no, no, it's definitely. 89 00:04:31,440 --> 00:04:33,720 Speaker 2: It's definitely having an impact. And as I say, it's 90 00:04:33,720 --> 00:04:36,039 Speaker 2: those you know, there's a bunch of fixed costs that 91 00:04:36,040 --> 00:04:38,760 Speaker 2: have gone up. There's not much that the government can 92 00:04:38,800 --> 00:04:42,480 Speaker 2: do about those. But you know that that excise tax 93 00:04:42,520 --> 00:04:45,240 Speaker 2: that beer exercised twice a year every year for the 94 00:04:45,279 --> 00:04:47,520 Speaker 2: last three years, they could absolutely step in at any 95 00:04:47,560 --> 00:04:49,839 Speaker 2: time and say enough enough, we're going to do something 96 00:04:49,839 --> 00:04:50,159 Speaker 2: about that. 97 00:04:50,240 --> 00:04:52,080 Speaker 1: Yeah, we did with petrol a few years ago with 98 00:04:52,120 --> 00:04:54,760 Speaker 1: the exercise on that. So yeah, absolutely, they could do 99 00:04:54,800 --> 00:04:57,120 Speaker 1: anything they want with it. So indeed, thank you for 100 00:04:57,160 --> 00:04:58,120 Speaker 1: your time this morning. 101 00:04:57,920 --> 00:05:00,719 Speaker 2: John, no problem, Thanks very much, you appreciate it. 102 00:05:00,800 --> 00:05:03,160 Speaker 1: John Preston, CEO Brewers Association of Australia.