Hospitality New Zealand (HNZ) says price hikes from large breweries are directly impacting on the profitability of small businesses.
Both DB and Lion have recently decided to increase prices for most of their alcohol products from early March.
HNZ president Adam Cunningham says small businesses feel they need to absorb the cost increases to ensure customer loyalty, which causes them to suffer financially.
He says the industry has had “a guts full” of losses brought on by “price increases that we don’t initiate, don’t like and are unable to control”.
“The public just needs to be aware that the cost increase on any product to an operator must be passed on,” he says.
Mr Cunningham says many businesses are struggling, and unless they pass the increased costs on to customers there will be fewer licensed premises available to drink in.
“People… will flock to local supermarkets where they can buy well-advertised cartons of cheap liquor,” he says.
“They drink at home, in flats and in uncontrolled environments before heading into town.
“The public suffers while those of our members who are still in business clean up the mess, and large brewery shareholders are far, far away.”
3 News