Charge more for beer: Foster's

Australian consumers are prepared to pay more for beer than they currently do, according to Foster's CEO Ari Mervis.

At the Australian Liquor Stores Association (ALSA) conference this week, Mervis said price deflation is one of the big challenges currently confronting the entire liquor industry.

"If we had a little bit of inflation come into the category it would be quite healthy for your margins, certainly for our margins," Mervis told retailers.

He reiterated SABMiller's belief that Australians' current expenditure on beer falls short of its potential, based on global comparisons.

"We walk into outlets and we see six-packs of beer on a Saturday night at $16.99 or $17.99 – people are trying to compete on price in that segment," Mervis said.

"We say to the retailer, if someone's got a barbeque on a Saturday night, they'll pay a lot more for a six-pack of beer for the convenience factor."

Mervis said bottleshops can improve consumers' average spend by offering them special deals such as a six-pack of beer together with a longneck or two bottles of cider.

"The consumer doesn't really want to walk out with $3 in change, you'd be quite happy to spend that on something, and get value for it," he said.

Source: The Shout, 29 August 2012