Alcohol price increase will hurt

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Alcohol price increase will hurt

The decision by liquor producers to increase prices has been condemned by hospitality retailers. This would cost consumers and could cost jobs if retailers do not pass the increases on said Bruce Robertson, Chief Executive of the Hospitality Association.

Producers should have waited until June and exercised the same restraint the rest of the economy is applying in these challenging economic times. Instead, hospitality retailers will have no choice but to pass on these increases to customers, he said. For some it is a double blow with the increase in the minimum wage also driving up costs.

While many retailers would try and minimise price increases, to not pass them on was putting businesses and jobs at risk, said Mr Robertson. The industry would be very upset if the producers were looking to double dip with further increases later in the year.

Normally alcohol prices are adjusted annually around June or July at the time of the annual CPI adjustment to alcohol excise tax. Mr Robertson said he understood that the breweries faced increases but so did everyone else. Belt tightening meantime with a review later in the year would have been a better option. The Association would be seeking guarantees that there would be no further price increase in June.

ENDS

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