Beer taps dominated by big brands as small brewers cry foul

The competition watchdog is investigating whether contracts between major beer companies and pubs are unfairly blocking smaller brewers from the market.

The Australian Competition and Consumer Commission (ACCC) has sent a letter to small brewers asking if "certain conduct may be affecting competition".

Wade Curtis, an award-winning brewer in Brisbane, says there is a big demand for craft and boutique beers, but major brands dominate what is offered on tap in most pubs.

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"Bar managers want to buy it and consumers want to drink it, but they can't because there's these tap contracts in place," he said.

"The way I believe they (the contracts) are structured, the venue will agree to commit a certain amount of taps - it might be 70, 80 per cent - and they say that those beers must be on tap."

Mr Curtis says venues and hotels are then audited by beer companies to ensure compliance.

"I don't believe they say that you can't have other beers on tap, but by default you kind of can't," he said.

"I thought it was very unfair towards small brewers.

"Maybe it's not a competition issue, but it does feel like there is a real consumer choice issue - that's what this inquiry is about, looking at whether or not there is an issue.

"If there is no issue, then I think the craft brewing and smaller brewers need to move on."

Former ACCC commissioner and competition law expert at Monash University, Professor Stephen King, said it is unlikely to be a competition problem.

"It's a legitimate thing for the ACCC to look into, they'll find out the facts, but just on what I know at the moment, I doubt there'll be any competition concerns," he said.

Professor King says it is not illegal for big breweries to have a large share of the beer taps in pubs, and the ACCC investigation will only go further if other illegal activities or dealings are revealed.

"The most obvious one - and I'm not suggesting this has occurred - if there was some sort of anti-competitive arrangement or agreement," he said.

"There's no evidence that sort of arrangement's occurred."

The ACCC says it is "undertaking some enquiries" but says it will not make a comment while an investigation is ongoing.

Its letter to small brewers asks for a response by next month.

Source: abcnews.com.au - 22 Jan 14