Lion Nathan blames the rising price of beer on inflation, excise tax and higher production costs. Photo / Richard Robinson
Lion Nathan blames the rising price of beer on inflation, excise tax and higher production costs. Photo / Richard Robinson
KEY POINTS:
The price of beer will rise by about 5.5 per cent on July 1, brewer Lion Nathan announced yesterday.
Wine prices will also rise by up to 3.9 per cent, and spirits and ready-to-drink products will rise by around 5.3 per cent.
A 5.5 per cent increase inbeer prices equates to a rise of nearly 40c on a $7 pint. A $20 pack of 12 beers would rise to $21.10, a $15 bottle of wine would cost $15.60, and a $40 bottle of spirits $42.20.
Whether retailers will add further price increases on to consumers has not been confirmed, but Lion Nathan's price rises of about 3.4 per cent last year were passed on to consumers without further point-of-sale increases.
The rises come as the company tries to accommodate annual inflation, excise tax, higher production cost and rapidly rising distribution costs.
New Zealand's other major beer producer, DB Breweries, is expected to raise its prices by a similar amount on July 1.
DB Breweries had not yet completed its increases, but a spokeswoman told the Weekend Herald last night the company planned to make an announcement next week.
Not all of Lion Nathan's beers, which include Speight's, Lion Red and Steinlager, would rise by the same amount, said Lion Nathan corporate affairs director Liz Read.
Premium beers would rise a little less than the staples. New Zealand's alcohol consumption had flattened out, she said.
Cask wine had virtually disappeared across New Zealand and sales for the premium beers were growing faster than the cheaper varieties.
