HOTEL INDUSTRY SLAMS CUB’S ENTRY TO ONLINE LIQUOR SALES

Former Australian brewing behemoth Carlton & United Breweries has stirred up a hornet’s nest with its decision to try direct-retailing many of its products to consumers through eBay – at discounted prices.

Carlton & United Breweries (CUB) was wholly acquired in 2011 by South African brewer SAB Miller, which was itself wholly acquired late 2016 by American mega-brewer AB-InBev. CUB has continued as a division of AB-InBev, while SAB Miller ceased to exist after the take-over. 

AB-InBev global growth and innovation division, ZX Ventures, purchased growing online liquor retailer BoozeBud last year.

In November ZX began trialling sale of a select range of CUB products through online marketplace eBay.

The two-odd months of the program to date has yielded a few hundred transactions, with a 98.9% positive feedback rating by consumers. The few negative ratings were largely about terms of delivery.

At regular price (sans discounts or redemption coupon systems) the pages are selling commonly stocked CUB-produced or distributed beers, such as Carlton Draught, Carlton Dry, Crown, Corona, Pure Blonde and VB, for around five to six per cent off retail, with cheap terms on delivery. 

Earlier in January the big brewer did end a significantly larger launch discount that saw some major labels reduced by around 25 per cent in total, below any other retailer’s regular price.

Hoteliers have expressed their concern and outrage that CUB has aggressively moved into the retail market, bypassing their long-time partners and former tied houses to use their size to snatch market share.

“As far as I’m concerned, they may as well have set up their own bottleshops next door to all bottleshops in Australia,” pronounced one northern NSW hotelier. “I’m disgusted by CUB’s tactic.”

Publicans are reportedly in discussions with lawyers as to the possibility of contract breaches by the major supplier, with talk of pulling most or all CUB products from bottleshop shelves and pubs.

One group operator reports an average of 24 per cent of revenue across its venues comes from its bottleshops, retailing $1.6 million of CUB products annually – which soon may no longer be stocked.

The Australian Hotels Association is looking to meet with CUB to voice industry concerns.

“The AHA will be holding urgent discussions with CUB to express the sentiment of our members,” announced National President, Scott Leach.

Liquor can be sold and distributed on eBay as being 18 years’ of age is a requirement of creating an account to purchase goods on the site. 

It is worth noting that Dan Murphy’s also has both a seller’s page on eBay and online retailing via its own website.

The same case of Corona (for example), with RRP of $60, is being advertised by CUB on eBay for $56 (discount of 6.67 per cent), and by Dan Murphy’s for as low as $48.95 – a discount of 18.42 per cent off RRP.

While many have voiced concern at Woolworths’ policy of price under-cutting in its big-box outlets, the entry of the big (former) Australian brewer seems to have hit closer to home.