Pub owner warns price of a schooner will rise after tap beer hike

Wednesday, 4 March 2026 16:41

"Any increase to the price has to be passed onto the customer straight away."

The cost of a schooner at the pub is about to rise after two major brewers moved to hike tap beer prices.

Lion, which brews the likes of XXXX Gold, Hahn, James Boags and Little Creatures, confirmed it has made the "difficult decision" to raise the price of some of its draught beer, blaming cost inflation in Australia's embattled hospitality industry.

"Despite a welcome pause in excise rises for tap beer, the brewing and hospitality industries have continued to experience cost inflation over the last couple of years, and market conditions remain difficult," a spokesperson for Lion told nine.com.au.

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AFR, GENERIC, BEER: Beer taps in a pub, generic, carlton united breweries, CUB, carlton draught, victoria bitter, beer taps, pub, bar, alcohol, liquor Picture by Louie Douvis / ldz ***afr first use only******afrphotos.com***

The beer giant said it had seen a significant rise in costs including materials, wages, warehousing and distribution.

"Lion is committed to striking the right balance between competitive pricing and recovering some of the costs passed onto us from our suppliers in a stubbornly high inflation environment," the spokesperson added.

Fellow beer giant Asahi – the parent company of iconic Australian favourites Victoria Bitter (VB), Carlton, Pure Blonde, Crown and Great Northern, has also increased its tap beer prices.

A keg of VB now costs $415.10, a price increase of $13.90.

This amounts to about 40c per schooner.

Pub owners say this price hike is going to hit customers at the bar.

Phil Anderson owns and operates The MiTCH in Alexandria, in Sydney's inner-south, and said margins for pubs are already "very, very thin".

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Phil Anderson, owner of MiTCH in Alexandria

He warned the price of schooner could near the $14 mark as venues desperately try claw back profits, with many owners having "no choice" but to raise the cost at the cash register.

"Any increase to the price has to be passed onto the customer straight away," Anderson said.

In response to the price hikes, the Australian Hotels Association (AHA) has recommended that operators charge $9.50 for a schooner of VB, XXXX Gold and Carlton Draught.

Before the price increases, the AHA recommended $9.10 for the same brands.

But Anderson said this still leaves little room to make any profit.

"People don't understand that it's not just the pub trying to make money," he said.

"It is these multinational groups."

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Fresh beer filling the glass directly from the tap. With extra foam spilling over glass.

He'd love to stock more independent Australian brands, but Anderson said a good pub can't avoid having beers like VB on tap.

"People love to buy them," he said of the Asahi and Lion duopoly's popular draughts.

Proprietors like Anderson have welcomed the federal government's beer tax excise, but say it amounts to nothing if prices keep soaring.

The House of Representatives last month approved a bill temporarily freezing excise on draught beer in a move the government pitched as a cost-of-living measure.

It has been a short-lived relief.

"Every six months there is a price increase anyway," Anderson added.

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