Beer and wine price increases from tomorrow

Beer duty rises to 1.7803 cents per litre, wine to 4.1570 cents per litre and sprits to 15.7701 cents per litre

THE government inspired yearly price hikes for spirits, beer and wine will come into effect from tomorrow with a mandatory duty rise.

From 1 July 2009, the ALAC (Alcohol Advisory Council Levy) will be set each year under liquor classes based on a beverage's deemed or average alcohol content.

Alcoholic beverages with a higher volume of alcohol contribute a higher proportion to the levy.

Among other duty classes, beer rises to 1.7803 cents per litre, wine to 4.1570 cents per litre and spirits to 15.7701 cents per litre.

Prices are expected to go up over the next month, with some retailers likely to apply the rise immediately, while others use up stock before passing on the increase.

This closes the differential between a UK-supermarket bottle of wine with a Kiwi-New World bottle, but retailers are likely to try and absorb some of the costs in a recession busting strategy.

Comments

[Domestic Executive]

Time to make the most of the sales in the supermarket where there seems to be a glut of cheap Australian and South African wine. I however will stick to my NZ Sav, whatever the duty!