Calls out to close beer price gap

Liquor licensing inspectors are backing calls by Taranaki publicans to close the price gap between on and off-licensed premises.

Bar owners from around the region told the Taranaki Daily News they wanted to see some parity between the price of beer in bars and supermarkets and bottle stores.

The call came at the same time DB Breweries announced its packaged beer and cider would increase in price by 3 per cent, on average, from March 5, and tap beer would rise 1 per cent.

Murray Clearwater, president of the New Zealand Institute of Liquor Licensing Inspectors, said they supported the minimum pricing regime proposed in the Alcohol Reform Bill.

"We believe the cost differential between liquor purchased from off-licensed premises and on-licensed premises does contribute to alcohol related harm," Mr Clearwater said.

"Those persons who wish to have six to eight drinks in a session pay $10-15 from an off-licence but have to pay $40-50 in an on-licensed premises."

He said because of the price difference many people chose to "front load" on cheap booze before they went into town which created problems for bars.

"NZILLI believes that a minimum pricing regime for alcohol will close the price differential and make it more attractive for drinkers to enter licensed premises earlier in the evening and drink in a controlled environment," Mr Clearwater said.

He encouraged the Government to move forward with its plans to implement a minimum price for alcohol as soon as possible.

Doc van Praagh, owner of Crowded House, said the price of beer between bars and bottle stores was a lot closer in Australia and he would like to see similar measures introduced in New Zealand.

"I would like to see off-licenses a bit dearer that way they wouldn't drink so much at home and come out earlier," Mr van Praagh said.

He believed if people were drinking in a controlled environment it would reduce the alcohol related harm.

"Especially at home and on the streets."

Mr van Praagh said he would review his prices after the increase in alcohol excise tax in July but didn't think a small rise would deter punters.

"If you have got a good product and service, people will still come in."

Bertie Burleigh, owner of Peggy Gordon's Celtic Bar, said supermarkets were using beer as a loss leader.

"You can basically get an imperial pint for about $3. Our off-sales are far too cheap," Mr Burleigh said.

He said people who drank lots of cheap alcohol at home were usually responsible for the majority of the trouble caused in town later at night.

Mr Burleigh said he would not be increasing prices.

"We don't think that the market is right to adjust prices," Mr Burleigh said.

Arborio restaurant owner Simon Johnston-Saywell said the hospitality industry was a competitive market and he was not sure how he would deal with the price rise.

"We will have to look at it – hopefully not," Mr Johnston-Saywell said.

"Soon you won't be able to by beer because it will be too dear."

Jeff Orr, co-owner of Barries Restaurant and Sports Bar, Hawera, said it could be a struggle competing against the cheap off-license prices.

"We can purchase no cheaper than what the average person going into a supermarket can," Mr Orr said.

He said the bar tried to absorb prices rises when it could but would probably have to pass on the increase this time.

HOW THEY STACK UP - BARS

Peggy Gordon's Celtic Bar – NP Stella Artois sells for $9 a 570ml pint – $1.58 per 100ml. Speights goes for $6.70 a 570ml pint – $1.18 per 100ml. Crowded House – NP A 400ml glass of Heineken sells for $8 – $2 per 100ml. While a 425ml "Kiwi pint" of Tui went for $6 – $1.41 per 100ml. Arborio Restaurant – NP A 400ml glass of Heineken sells for $7.50 – $1.88 per 100ml. Barries Restaurant and Sports Bar – Hawera A Kiwi pint 425ml of Tui $5.50 – $1.29 per 100ml. Colonel Malone's – Stratford Export Gold 425ml $5.50 – $1.29 per 100ml Auckland's Red Hummingbird Heineken 500ml pint of for $10 – $2 per 100ml. Hamilton's Helm Bar Heineken 400ml glass $8.50 – $2.13 per 100ml and $10.50 a 500ml glass – $2.10 per 100ml.

Source: Taranaki Daily News